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{
    "id": 801744,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/801744/?format=api",
    "text_counter": 83,
    "type": "speech",
    "speaker_name": "Hon. Ng’ongo",
    "speaker_title": "",
    "speaker": {
        "id": 110,
        "legal_name": "John Mbadi Ng'ong'o",
        "slug": "john-mbadi"
    },
    "content": "This is supposed to guide the budget making process. The Executive needs to be cautious when preparing the Budget Estimates. It needs to be synchronised with the Budget Policy Statement. But when you look at the Budget Estimates and compare with what this House passed in the BPS, it is very clear that there are very many areas of variance and there is non- compliance. However, the law requires that when there is a variance or the Estimates differ from the BPS, the National Treasury should submit a memorandum which would explain the reason those deviations became necessary. However, for the first time, we want to commend the Treasury for bringing memorandum explaining the reasons there is a variation between the BPS and the Budget Estimates. However, some of the reasons that have been advanced for the deviations could have been foreseen at the time of preparing the BPS. Therefore, it does not make sense at all why these adjustments that are now coming late in the day during the preparation of the Budget Estimates were not captured at the time of preparing the BPS. I have in mind, for example, the issue of collection of A-in-A, which we have been talking about every time we debate the Budget Estimates. We have been very clear that A-in-A, the way it is captured in our records, the way it is put in our Budget, does not enhance accountability. Therefore, we expected that this time round, this would have been foreseen and presented the way we wanted it to be done at the time of preparing the BPS. But what we have seen is that the Treasury waited for the Budget Estimates to capture the A-in-A collections. Another key issue or area of compliance is that the estimates of revenue allocated and expenditure for the Equalisation Fund for 2018/2019 was not submitted to Parliament as required by law, even though there are indications in the budget proposals that the Fund has been allocated Kshs4.7 billion. There is no explanation as to why this requirement of submitting revenue allocation and expenditures for the Equalisation Fund was not submitted by the Treasury. But more fundamentally, the Equalisation Fund is a requirement of the Constitution and, therefore, the National Treasury must provide the amounts based on the percentage that is provided for in the Constitution. The Kshs4.7 billion provided for is not in compliance with and does not conform to the 0.5 per cent that the Constitution talks about. In efforts to ensure transparency and public participation in the Budget preparation, the PFM regulations envisages a situation where a simplified mwananchi budget is prepared by the National Treasury and, perhaps, posted on its website so that Wanjiku can understand and engage with the Budget. But this publication is not there. Public participation in budget-making process is a constitutional requirement. Budget is not just prepared for finance experts. It is not just prepared for accountants and economists. It is also prepared for mama mboga on the street. We expect that the Treasury needs to prepare every financial year a simplified mwananchi budget version, a version that every person would understand or at least an average person would understand. On the other key Budget issues, the fiscal policy for the medium-term is aimed at fiscal consolidation to address deficit financing in order to reduce accumulation of public debt. This policy requires planned action to contain growth in expenditure and improvement of revenue performance. The fiscal policy direction of the country remains unclear as expenditure pressures The electronic version of the Official Hansard Report is for information purposes only. Acertified version of this Report can be obtained from the Hansard Editor."
}