Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 801745,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/801745/?format=api",
    "text_counter": 84,
    "type": "speech",
    "speaker_name": "Hon. Ng’ongo",
    "speaker_title": "",
    "speaker": {
        "id": 110,
        "legal_name": "John Mbadi Ng'ong'o",
        "slug": "john-mbadi"
    },
    "content": "are likely to persist, leading to widening of the deficit if expenditure is not well controlled. I cannot overemphasise this point. If we do not control the expenditure pressures that we experience, if we do not contain the hunger by which MDAs are continuously increasing their expenditure requirements, this country will not cope in terms of financing the Budget. The net effect is that the country will continue to borrow money. This borrowing will come from either domestic sources or external sources. Of course, when the borrowing comes from domestic sources, there is the attendant risk of raising the interest rates because we will be crowding out the private sector. But again, even if we borrow money externally, of course, we are increasing the cost of borrowing. I will remind this House that if you compare the rate at which we borrowed the first Eurobond with the rate at which we are borrowing now, you will realise we are now borrowing money from the external market at a higher interest rate. This is because of our appetite for borrowing which makes our risk of repaying the loan higher and, of course, there must be a cost to it. On the revenue side, there is concern that the projected revenue may not be achieved given that the proposed revenue enhancements initiatives which the Treasury is coming up with are not new, hence we might not yield any extra much-needed resources as anticipated. I know the Finance Bill has not been tabled. I know we are yet to receive the CS in this House on 14th of June to present to us the Budget highlights and revenue-raising measures. We will wait for Mr. Rotich to come before us and tell us how he is preparing to finance the 2018/2019 ambitious Budget. Be that as it may, there are already indications that there are no much serious new sources of revenue. I want to move quickly because I can see I am pressed for time. I want to touch on a few areas before I sit down. This is on specifics. First, we must agree as a House that this country, because of the effects of the recent rains, there is a problem in terms of the infrastructure. Because our infrastructure has a challenge, the Budget and Appropriations Committee has decided to allocate to each constituency some money."
}