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{
"id": 714920,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/714920/?format=api",
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"speaker_name": "Hon. Musyimi",
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"legal_name": "Mutava Musyimi",
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"content": "budget for a given financial year. It is also a requirement in the Public Finance Management Act; 2012, the Public Finance Management Regulations, 2015 and the relevant Standing Orders, that the document be submitted to Parliament for deliberation and eventual adoption. The 2017/2018 BPS aims at consolidating economic gains through five key pillars; mainly improving business environment, infrastructure, the social sector - that is health and education, agriculture and manufacturing. The idea is for this policy document to give us direction on how these pillars will be strengthened so that we can have a strong economy that grows and expands. My Committee was, however, concerned that when identifying the policy priorities for the 2017/2018 Financial Year over the medium term, we did not sense any concrete review of the status of previous key targets. There was no information on the status of projects supported by capital expenditure. Under each pillar, various important measures and targets, which were included in previous BPSs, have been omitted in the current BPS, making it rather difficult for scrutiny of the policy proposals contained therein. This House approved the 2016/2017 Budget in June this year. Nearly halfway through the financial year, all indications are that substantial adjustments of the Budget have been carried out. This implies that the achievement of some budget targets hang in the balance. In addition, it is also an indicator that there are issues in the process of review of the Budget, right from preparation to approval. Obviously, this will put into question the integrity and credibility of the budget-making process. My Committee also notes with respect to the macro-economic framework that the programmes outlined in the 2017/2018 BPS are underpinned by a macro-economic framework that estimates the economy to grow at 6.2 per cent in this coming financial year and 6.6 per cent in the medium term. This is supported by ongoing investments in infrastructure, resilient domestic demand, strong agricultural output supported by a stable weather outlook with all its unpredictability, continued recovery of tourism which is very positive, growth of exports in the regional markets; and improved productivity in the private sector, due to the implementation of the structural reforms. My Committee notes with concern that key fundamentals driving growth are not likely to lead to such growth as is contemplated by the BPS. Of particular concern is that significant resources have been invested in infrastructure and in improving the business environment, to be fair, as key drivers of growth. We do not sense that there is expansion of the existing capital base to unlock the productive potential of the economy. We are not putting enough money and creative thinking in agriculture and manufacturing. Unemployment remains high and these two sectors need to get serious review. On behalf of my Committee, I commend the tremendous improvement we have seen in tourism, which brings us very vital foreign exchange earnings. Given that 2017 will be an election year and has been the case in the past, there is likely to be no major improvement in private investments as most investors, as we all know, especially from outside, often adopt a wait-and-see attitude, the micro-fiscal framework underpinning that this BPS should have put into consideration these vulnerabilities that are likely to affect the growth trajectory. My Committee notes that there has been a constant review of fiscal projections in the past financial years. There is a clear disconnect between the ministerial ceilings approved in the BPS, the ministerial allocations approved in the budget and the revisions proposed in here through supplementary budgets. Hon. Members are aware that on 1st December 2016, the first Supplementary Budget for the 2016/2017 Financial Year which is mainly revisions of the 2016/2017 Budget, were tabled in The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}