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{
    "id": 748234,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/748234/?format=api",
    "text_counter": 56,
    "type": "speech",
    "speaker_name": "Hon. Musyimi",
    "speaker_title": "",
    "speaker": {
        "id": 95,
        "legal_name": "Mutava Musyimi",
        "slug": "mutava-musyimi"
    },
    "content": "Hon. Speaker. I beg to move that the Division of Revenue Bill (No. 2) Bill (National Assembly Bill No. 22 of 2017) be read a Second Time. Hon. Speaker, as I stand here in this honourable House to move this Motion for the Division of Revenue Bill (No. 2) (National Assembly Bill No. 22 of 2017) to be read a Second Time, I must confess that I am at pains. It is because – as you may recall - this honourable House passed the Budget Policy Statement (BPS) 2017 which made a resolution that we needed to reduce the fiscal deficit. This was done on account of what the Budget and Appropriations Committee had anticipated. As we are seeing, a good example is the current rise in the cost of living which will obviously affect the revenues. It is a widely accepted fact that a higher fiscal deficit is a major contributor to high inflation and leads to higher cost of living - which is the worst enemy of our people. During the processing of the BPS, this principle was well expounded and supported by the team that advises our Parliament on the Budget and economic matters - the Parliamentary Budget Office (PBO). In this regard, my Committee recommended to this honourable House that we reduce the overall Budget by Kshs80 billion. This reduction was to be borne by both the national Government and county governments. In making this proposal, my Committee and this honourable House had our people’s interests at heart. The Division of Revenue (No. 2) Bill (National Assembly Bill No. 22 of 2017) that we have republished has the same figures that this House approved. Let me explain why this is the case. First and foremost, the authorities had projected a higher growth of our economy, while under-estimating the impact of risks such as the prolonged drought, the wait-and-see attitude of investors on account of the upcoming general elections and such other factors which may dismantle the macro-economic fiscal framework of our country. I am aware that, recently, for example, reputed institutions such as the World Bank have revised downwards the country’s gross figures for calendar year 2017 from 5.6 per cent to 5.3 per cent. This must imply that the current fiscal framework is somehow distorted and needs to be revised within the coming Financial Year. The process of sharing resources must be guided by expected outputs and outcomes that will lead to favourable growth. If you look at the available statistics, for example between the years 2000 and 2011 – a span of 11 years - you will realise that there was a fiscal space to shift resources to infrastructure, development, agriculture, social obligations, among other needs of the Government of the day. However, between 2012 and 2017, you will notice that the fiscal space has shrank as resources in excess of Kshs1 trillion have been curved out from the national kitty and transferred to establish the county governments - 47 of them across the country. That reality has not been appreciated by many of us. To divert that kind of money to largely infrastructural projects as we create offices and administrative units in the county governments can only mean that less money is actually available for development at the national level and also at the county level. That will have implications in terms of the growth of our economy without any question. The national Government has also had its own challenges with respect to available resources for development. That is because the 2010 Constitution and its implementation did 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."
}