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{
    "id": 712920,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/712920/?format=api",
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    "content": "which are contained in the Budget Policy Statement as clearly manifested in the functions of the Senate in Article 96 of the Constitution. Mr. Temporary Speaker, Sir, the BPS sets out the annual revenues amounts to be raised by the national Government and at the same time, its key expenditure policies. Therefore, the role of the Senate is primarily being to protect the counties to look at the financing of the counties, and to ensure that there is a unified economic policy in counties for all Kenyans; and also, to improve national and intra-county business climate. Mr. Temporary Speaker, Sir, BPS of 2017 can be categorised into two:- (a) The national policies and programmes which have a direct impact on the economic performance of counties; and (b) On the proposals on division of revenue between the two levels of Government. So, in order to enhance the economic performance of counties and national Government, after looking at the entire report, the Committee came up with a number of recommendations. This is on (v) of the Report. I will quickly gloss over them because Members can have an opportunity to look at them, for example:- (a) The progress on the 5,000 megawatts energy projects is still unclear. The National Treasury should provide a status report, not just on this one but generally on all the capital expenditure programmes. (b) We are also concerned about the Public Private Partnership (PPP) projects and their implementation which seems to be moving very slowly. It is important that we get to know the status and impact on the economy. (c) The operationalization of the cash transfer single registry window for social safety net funds at the national and county which we recommended at the Senate to avoid duplication is yet to be seen; and a number of others, including National Treasury to look at these issues regarding development of a framework to harmonize revenue policies across counties and between the national and county government. Again, the most important thing is Kenya’s debt for which the Senate Committee has expressed serious concern because our debt is expanding at an alarming level. Debt servicing is likely to take up to 40 per cent of Government revenue next financial year. It is already taking 40 per cent. We are concerned that in the next few years, we will be spending much more than half of our entire revenue servicing debt. This is because of the deficit in the Budget which has continued to remain above 6 per cent in spite of the Government’s assurance that they will keep it low. Mr. Temporary Speaker, on the revenue allocations, we are concerned about the inconsistency by the National Treasury’s parameters used for determination of revenue for the county governments. In the past, they have used average of the annual growth rate of revenues. This year, they are using more less the average inflation rate. We cannot have this inconsistency in terms of determination of the amount of money that should go to the county governments. The National Treasury needs to appreciate that there has to be predictability in revenues that will go to the counties. That is one of our concerns. Then there is the issue of the roads. Over 31,000 kilometres were transferred to the counties. This time, the Division of Revenue Bill should have money to take care of this. There is an Intergovernmental Budget and Economic Council (IBEC) meeting to address this and other issues related to division of revenue. The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate"
}