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{
    "id": 728710,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/728710/?format=api",
    "text_counter": 183,
    "type": "other",
    "speaker_name": "",
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    "speaker": null,
    "content": "amount to Kshs1.3 billion equivalent to 15.5 percent of GDP, while Development Expenditure is projected at Kshs640.3 billion equivalent to 7.4 percent of GDP. In addition, Kshs5 billion has been set aside as contingency to cater for unseen expenditures. This means that the fiscal deficit for 2017/2018 will be Kshs524.6 billion equivalent to 6.0 percent of GDP and will be financed through borrowing from both external and domestic sources. The net external financing will amount to Kshs256 billion (2.9 percent of GDP) and will be mainly on concessional terms. Non-concessional external borrowing will be limited to projects with viable expected returns and the ceilings in the Medium-Term Debt Strategy. The domestic financing of the Budget will, therefore, comprise of Kshs268.6 billion equivalent to 3.1 percent of GDP borrowing. The rest of my Budget presentation outlines various tax measures I intend to introduce through the Finance Bill 2017 to create jobs and better the lives of Kenyans. As earlier indicated in this statement, we consulted other partner States in EAC and we agreed Kenya could proceed with an early presentation of the Budget. However, regarding matters relating to customs, we have evaluated various proposals from stakeholders for consideration by the EAC Ministers for Finance during the pre-budget consultations meeting to be held in May, this year. Measures that will be agreed upon by the EAC Ministers for Finance on matters relating to customs will be communicated through the EAC Gazette and implemented from 1st July, this year. Meanwhile, the EAC Common External Tariff which sets out the rates of duty applicable on imported goods is undergoing a comprehensive review and the final outcome will be released once adopted by the EAC Council of Ministers. The customs proposals contain measures to promote industrialisation, encourage local investments, and create incentives in the agricultural and manufacturing sectors in order to make our products more competitive so as to protect local industries from cheap imports which create unfair competition. The Government has noted the huge potential for growth in the paint and resin manufacturing industry for matching the high demand in the construction industry. Illuminating kerosene is a critical input in this sector. So as to promote paint and resin manufacturing, I propose to amend the Excise Duty Act to allow refund of excise duty paid on illuminating kerosene used in the manufacturing of paints and resin by registered manufacturers. The VAT Act, 2013 introduced 16 percent VAT on all imported inputs for pest control products for local processing/formulation while the imported finished products remain zero rated. This treatment has made locally manufactured pesticides more expensive than the imported products. In order to promote local manufacturers and reduce costs of production in agricultural sector, I propose to exempt VAT on all inputs used in the manufacture of pesticides."
}