27 Feb 2020 in Senate:
Public Debt Sustainability Analysis is the ability of a country to service its debt obligations as they fall due without disrupting budget implementation. Debt Sustainability Analysis compares debt burden indicators to thresholds over a 20 year projection period. In case of any breach of any of these thresholds, it would mean that there is a risk of experiencing some form of debt distress. Madam Temporary Speaker, we have looked at the debt strategy in place, but I think that as far as the Budget Policy Statement (BPS) is concerned, apart from the debt level data and whatever is there, the ...
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27 Feb 2020 in Senate:
In fact, this phrase was included last time, but we will not allow that in our recommendation. We want to say wholly that any shortfall must be borne by the national Government alone. Madam Temporary Speaker, noting the national Government’s effort on fiscal consolidation and revised revenue projections, the Committee recommends that the Senate approves the Budget Policy Statement (BPS), 2020, and Medium Term Debt Management Strategy (MTDMS), with the following recommendations- (a) That the recommendations include allocation of Kshs316.5 billion county governments’ equitable share for the Financial Year 2020/21. The same figure has been proposed by the National Treasury ...
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27 Feb 2020 in Senate:
(b) Allocation of Kshs47.158 billion conditional grants to county governments.
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27 Feb 2020 in Senate:
(c) Suspension of allocation and payment to the leasing of Medical Equipment Services Project and removal of the same from The Division of Revenue Bill until ongoing investigations by the Senate are concluded.
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27 Feb 2020 in Senate:
Madam Temporary Speaker, with those many remarks, I beg to move and request my Vice Chairperson, Sen. Mwaura, to second.
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27 Feb 2020 in Senate:
On a point of order, Madam Temporary Speaker. Is my good friend in order to discuss the issue of the Third Generation Formula? That will come in the County Allocation of Revenue Act (CARA). Rest assured that during CARA, we will use the Third Generation Formula. This is not a forum to discuss that.
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27 Feb 2020 in Senate:
Madam Temporary Speaker, I would like to inform the House that the documents are annexed to the Budget Policy Statement (BPS) and the Medium Term Debt Management Strategy. Both the DoRA and CARA will be officially tabled in the National Assembly and the Senate before the end of April which is in accordance with the Constitution. You only picked one glaring Clause in the DoRA and, therefore, rest assured, DoRA will be subjected to scrutiny. There are a lot of things that will have to change in the CARA because of the Third Revenue Sharing Formula. According to our timetable, ...
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27 Feb 2020 in Senate:
Madam Temporary Speaker, Clause 5 is just meant to prepare ground for the Senators to be aware when DoRA comes. As I said earlier, DoRA has to be introduced in Parliament at least two months before the end of the financial year. That means that it has to be introduced to the House by 30th April. That Bill will be introduced by the National Assembly and not us. After the Bill is passed, we will introduce CARA. The figures for the 47 counties will only appear in CARA. The figure in DoRA, Kshs316 billion for counties will be distributed to ...
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27 Feb 2020 in Senate:
Madam Temporary Speaker, I will personally table CARA in this House. This is only a draft. Once the Senate agrees, we will amend that 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.
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27 Feb 2020 in Senate:
Schedule using the Third Generation formula. The DoRA does not have to use that formula.
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