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{
    "id": 676959,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/676959/?format=api",
    "text_counter": 203,
    "type": "speech",
    "speaker_name": "Hon. Mulu",
    "speaker_title": "",
    "speaker": {
        "id": 1955,
        "legal_name": "Benson Makali Mulu",
        "slug": "benson-makali-mulu"
    },
    "content": "At the county level, we need more control on how much resources should go to Development as opposed to Recurrent Expenditure. A situation where the Bill proposes that we exclude county governments from this requirement to have a minimum of 30 per cent for Development Vote is something we should change as a House. This will ensure that both the national Government and county governments spend, at least, 30 per cent of the resources allocated to them on development. The other important issue is approving public debt. The current law has a provision where the county government can authorise public borrowing at that level. This Bill takes that role away from the county assemblies and county governments, and gives it to the national Government. This is very important. It is in line with the Constitution which requires that for any public borrowing, the National Treasury must guarantee that borrowing. The fact that we are leaving county assemblies and county governments out of that authorisation is very important for this country for purposes of how we manage our public debt. The other issue is on disbursement to county governments. Currently, the law requires that we do it quarterly. The amendment proposed in the Bill is that it is done monthly. The whole issue of disbursing funds monthly is important because in that case, they will get money every month and they can plan for its implementation. Quarterly disbursement of funds is at times tricky when you look at the cash projections in terms of collection. The money we spend is collected by the Kenya Revenue Authority (KRA) on a monthly basis. Kenyans pay their taxes on monthly basis not on a quarterly basis. On that note, making the disbursement on a monthly basis makes it easier for the National Treasury to release resources. Another important amendment is the issue of having the disbursement schedules ready by 15th May so that it allows the National Treasury to plan for disbursement. That is another important amendment. Currently, our budget is in terms of revenue and expenditure. Clause 10 says that in addition to making estimates in terms of revenue and expenditure, it is important that we also make estimates in terms of borrowing levels. This appreciates the fact that every year, our national budget is expected to register some deficits. Even as we budget, it is important budgets clearly indicate the estimated deficit. This clause appreciates the fact that we will be registering deficits as we move forward. They must be estimated as we do our budgets."
}