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{
    "id": 878090,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/878090/?format=api",
    "text_counter": 531,
    "type": "speech",
    "speaker_name": "Sen. Mahamud",
    "speaker_title": "",
    "speaker": {
        "id": 373,
        "legal_name": "Mohammed Maalim Mahamud",
        "slug": "mohammed-mahamud"
    },
    "content": "had been set in the BPS 2018/2019. However, the approved ordinary revenue targets for the Financial Year 2018/2019 were reduced from Kshs1.74 trillion to Kshs1.65 trillion which led to spending cuts in the supplementary budget. There is concern on over projection in revenues that undermine the set targets rendering the targets unachievable. There is need to set realistic projections to avoid creating fiscal instability and delays in programme implementation. The National Treasury proposed reduction in equitable share of revenue for the Financial Year 2018/2019 to Kshs305 billion instead of Kshs314 billion will impact negatively on the amount of county fiscal transfers. Counties have already budgeted for that, we are only two months to the end of the financial year. We want to move from the Kshs314 billion approved in this financial year to Kshs305 billion by Kshs9 billion which will affect counties negatively. This contravenes Section 5(1) of the Division of Revenue Act 2018. In addition, the proposal of Kshs310 billion equitable share to counties for the Financial Year 2019/2020 is an unjustified reduction as compared to the Kshs314 billion requested in the Financial Year 2018/2019. According to the National Treasury when they appeared before us, the revised base is because of revenue shortfalls in the current Financial Year 2018/2019. However, it does not indicate the basis for arriving at the Kshs310 billion. Mr. Deputy Speaker, Sir, when the Commission on Revenue Allocation (CRA) appeared before us, in their recommendations to Parliament, they set out the county equitable share to be at Kshs335.7 billion. The recommendation of CRA is based on adjusting the current base for inflation to compensate for inflation using an inflation of three years average of 6.9 per cent. This means that on a minimum, the proposed for amount is to finance the current operational and development expenditure levels and means across the counties. There is a non explained increase in guaranteed debt at the end of December, 2018 that totals to Kshs147.7 billion from the current Kshs133 billion in December, 2017. There is no evidence that the increase in debt guarantees were subjected to parliamentary approval pursuant to Section 58 of the Public Finance Management Act, for instance, the loans which were recently given to Kenya Airways (KQ). There was no evidence that the guarantees were subjected to parliamentary approval. Although the year 2019-2020 BPS gives greater focus to food security and nutrition, there is lack of clarity in the policy interventions relating to the excess importation of maize and sugar; procurement of fertilizer, irrigation, privatization of cash crops and the agricultural research fund to lead to the achievement of the Big Four Agenda. This is what was being discussed in the other Motion."
}