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{
    "id": 833204,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/833204/?format=api",
    "text_counter": 193,
    "type": "speech",
    "speaker_name": "Kikuyu, JP",
    "speaker_title": "Hon. Kimani Ichung’wah",
    "speaker": {
        "id": 1835,
        "legal_name": "Anthony Kimani Ichung'Wah",
        "slug": "anthony-kimani-ichungwah"
    },
    "content": "time when every person is complaining of a huge debt burden. Therefore, it is good and only right that we allow each other an opportunity to be heard and listened to and make our case and vote as we did this afternoon. I wish we had that opportunity during the Finance Bill debate for those who wanted to negate the Memorandum from the President. On account of the expected revenue shortfalls amidst expenditure pressures, the Supplementary Budget proposes a reduction in the total budget estimates of Kshs55.1 billion of which Kshs11.724 billion is from the Recurrent Expenditure and Kshs34.27 billion is from the Development Expenditure. Under the new changes, the recurrent budget constitutes 62.27 per cent of the ministerial expenditure and development budget comprises 37.72 per cent of ministerial expenditure. It is good to note that the National Treasury has endeavoured to, at least, maintain well above the 30 per cent threshold on Development Expenditure. It is also important to note that in the first quarter - we are now into almost the first half of the second quarter - many MDAs of Government were yet to receive their Development Expenditure. Therefore, the Exchequer releases that were very slow or absent in many of our MDAs affect how this 37.72 per cent of our Budget that is going to Development Expenditure will be expended throughout the year. I call on the National Treasury to ensure that in this second half of this second quarter and moving on to the third and fourth quarter... Any Exchequer releases in the fourth quarter may not be very meaningful especially for Development Expenditure since people will not be able to procure and expend that money before the end of the year. The National Treasury should ensure that it expends with the Exchequer releases in this quarter and the next one to allow ministries and departments of Government to spend. It is not just about spending for the sake of it and development in the regions where this money is being targeted, but also to allow many of our businesspeople who are crying that there is no circulation of money in the country to access it. Government is the single largest spender of money and with it not being able to release funds, the economy is bound to suffer. So, I encourage the National Treasury to enhance their releases of the Exchequer. The financing of the Supplementary Budget comprises expenditure cuts in various votes and programmes in light of the projected lower revenue occasioned by the changes in the Finance Act 2018 that I just referred to, which was approved by the National Assembly a few weeks ago and the full revenue impact of the Memorandum of the President on the Finance Bill of 2018. The Committee will be making some amendments to the Bill in view of the reorganisation of functions of Government. In June 2018, an Executive Order was released which made changes to the organisational structure of the Government. This was anchored on the Public Finance Management National Government Regulation 57 which gives a window for the national Government to make policy changes in a financial year that may lead to creation of an additional ministry or State departments in national Government entities. In addition, the law also provides for transferring of certain functions or services of an existing ministry, State department or agencies to another existing ministry, state agency or department. Further, Regulation 57(5) provides that the Supplementary Appropriation Act shall provide the details of the affected votes and the National Treasury shall inform the affected accounting officers of the date they shall effect accounting entries in their books and the necessary inter-vote adjustments. 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."
}