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{
    "id": 975405,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/975405/?format=api",
    "text_counter": 173,
    "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": "and other revenues — including investment revenues — are projected to increase by Kshs19.4 billion and Kshs79.2 billion, respectively. As I indicated, with the current challenges, especially with the spread of coronavirus, you can expect even our import duties, VAT as well as our Income Tax to dip. Going forward, Hon. Speaker, the projected revenue collection for the 2020/2021 Financial Year, including Appropriation-in-Aid (A-i-A), will amount to Kshs2,134.1 billion as compared to Kshs2,084.2 billion in the current 2019/2020 Financial Year. Ordinary revenue in the next financial year is projected at Kshs1856.7 billion. There is a huge mismatch between the nominal GDP growth and the ordinary revenue projections in the BPS for the 2020/2021 Financial Year. While nominal GDP is expected to grow by 12.1 per cent, ordinary revenue instead grows at a lethargic 0.7 per cent to 0.8 per cent. The Committee is concerned that the economy, in nominal terms, is growing nearly five times faster than the growth in revenues. Hon. Speaker, this is a question that we have asked the National Treasury and they also seem not to be certain of what the problem is; that our economy — in terms of the nominal GDP — seems to be growing but the revenues are not growing at the same rate as the GDP growth. Therefore, it is a question that probably the Departmental Committee on Finance and National Planning needs to engage with Kenya Revenue Authority (KRA) and get to understand how is it that the economy seems to growing in nominal terms and yet, our revenues are not growing at the same rate at a time that we have huge expenditure pressures."
}