12 Mar 2015 in National Assembly:
Thank you, hon. Speaker for giving me this opportunity. First of all, I want to thank you for the wisdom you portrayed yesterday to allow Eng. Gumbo and the rest of the Members of Parliament to have a sitting with the Budget and Appropriations Committee. I realise today that the emotions that were raised in this House were almost for nothing. We got into a very fair understanding with the team on the issues.
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12 Mar 2015 in National Assembly:
First of all, we realised that there was no dispute on the provisions of Article 221(4) and (5). We realised that the arguments were on the modalities and the way to do public hearings. This is one area that we will continue to explore until we arrive at that situation where we are all in agreement in this House, so that we can follow the provisions of Article 221 of the Constitution, which, otherwise, we cannot help. I thought I should thank you for that because it provided a good avenue for all of us to get into an understanding.
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12 Mar 2015 in National Assembly:
Having said that, the BPS that is before us today is a Statement in our country that is supposed to cover broadly three basic areas. Firstly, it is supposed to provide the general macro-economic outlook for our economy. Secondly, it is supposed to provide how we are going to fund our Budget, namely, the projected revenue sources, projected expenditure and projected borrowing. The other thing that the BPS is supposed to do is to provide for ceilings for different Government expenditure areas. Finally, it is supposed to provide for the fiscal responsibility that we need as a country on the ...
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12 Mar 2015 in National Assembly:
If I were to look at these areas provided for by the BPS, this is one year that I would say that truly, God is on our side as a country. Our economy in 2015 has picked up very well for obvious good reasons. The World Bank just upgraded our economic outlook from about 4.7 per cent to about 6.9. It is rare for the World Bank to upgrade economic growth projections. There are inputs in this economy that are providing a lot of leverage for us to have a good economic growth and help our people to prosper. The ...
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12 Mar 2015 in National Assembly:
We still have risks to our economy like security. We depend on tourism and unless something is done as far as terrorism is concerned, we might have a soft underbelly in terms of tourism.
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12 Mar 2015 in National Assembly:
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12 Mar 2015 in National Assembly:
I am grateful for the appointment of hon. Nkaissery. For some reason, we have had a good time since he was appointed. I do not know whether it is about him or sentiments about him that made us get good security results for the last few months.
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12 Mar 2015 in National Assembly:
Talking of revenues and expenditures, our revenue source projection is only about Kshs1.4 trillion while our Budget is about Kshs2 trillion. You expect the deficit of Kshs600 billion to be met through borrowing. We remain, as always, which is unfortunate, a deficit Budget country. We have never had a surplus since Independence. We need to get there. That is the only time we can create sovereign wealth. Today, we need to be very careful about the ballooning Government expenditure. It is the reason we now have a Budget deficit of about Kshs600 billion.
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12 Mar 2015 in National Assembly:
Government expenditure in itself is a good thing to the economy. However, when government becomes a borrower, because it cannot finance its Budget through revenues, it impacts on the lives of every Kenyan. It affects the interest rates, the most important thing that all of us tend to get out of banks. I am glad that, through the wisdom of this Committee and involvement with the National Treasury, we have covered one very important area in that aspect – the capping of domestic borrowing at Kshs200 billion. It will go a long way in helping our economy.
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12 Mar 2015 in National Assembly:
Having sat through the Committee meetings, I realised that there is a reason as to why the Budget Policy Statement provides for ceilings for various Ministries. I appreciate the National Treasury for the ceilings they have provided this year. I realised that Ministries like to circumvent ceilings created by the National Treasury. If you look at them very closely, you will realise that the National Treasury does all these things in very good faith. I looked at the Ministry of East African Affairs, Commerce and Tourism and found that they wanted to increase the last Budget by about 3 per ...
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