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{
    "id": 977382,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/977382/?format=api",
    "text_counter": 140,
    "type": "speech",
    "speaker_name": "Sen. (Eng.) Mahamud",
    "speaker_title": "",
    "speaker": {
        "id": 373,
        "legal_name": "Mohammed Maalim Mahamud",
        "slug": "mohammed-mahamud"
    },
    "content": "There is need for an efficient revenue collection system, to ensure that there is no revenue leakage. The Budget Policy Statement came with three other documents; the Medium Term Debt Management Strategy, draft Division of Revenue Bill and The County Allocation Revenue Bill. Section 64 (2) of the Public Finance Management (PFM) Act, 2012 and Section 33 of the National Government Regulations, paragraphs 184 and 185, require the National Treasury to annually submit a Medium Term Debt Management Strategy to Parliament for consideration and approval. The Cabinet Secretary is required to provide the following information:- (1) the total stock of debt as at the date of the statement; (2) the sources of loans made to the national Government and the nature of guarantees given by the national Government; (3) the principal risks associated with those loans and guarantees; (4) the assumptions underlying the debt management strategy; and, (5) analysis of the sustainability of the amount of debt, both actual and potential. The Medium Term Debt Management Strategy, 2020, proposes a borrowing framework of 28 per cent from external borrowing and 72 per cent from domestic borrowing to finance the national budget deficit. External Debt will be financed through 14 per cent from concessional financing, 1 per cent from semi-concessional financing and 13 per cent from commercial financing It is important to note that the Stock of Debt as at end of December 2019, public debt amounted to Kshs6.048 trillion. This is equivalent to- (i) 61% of the Gross Domestic Product (GDP); and, (ii) 67% of the Kshs9 trillion national budget ceiling which was passed by Parliament last year. This total stock of debt is composed of:- (i) domestic debt - Kshs2.94 trillion (49%); and, (ii) external debt - Kshs3.06 trillion (51%) The national debt stock also comprises of debt guarantees pursuant to Article 213 of the Constitution and Section 58 of the PFM Act, 2012. As at the end of December 2019, guarantees worth Kshs158.1 billion had been provided to seven institutions, compared to Kshs133.79 billion provided as at end of December, 2017. Noting that the approved ceiling for guaranteeing debt is Kshs200 billion, the fiscal room available for further guarantees is only Kshs41.9 billion for both county government and national Government. This is a very restricted fiscal space for both undertakings. The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor, Senate."
}