Rev. Mutava Musyimi

All parliamentary appearances

Entries 811 to 820 of 1501.

• 13 Mar 2014 in National Assembly: Hon. Temporary Deputy Speaker, with regard to fiscal consolidation, the Government strategy does not seem to be working. Quite often the Government seems not to stick to its deficit targets in the Budget Policy Statement. There is a tendency by the Treasury to indicate a lower deficit at the BPS level while a significant increase appears when the Budget is submitted. The thrust of fiscal discipline must be centred on a significant reduction in the growth of compensation to employees. My Committee is concerned that despite the fact that some functions have been taken by county governments, the growth rate ... view
• 13 Mar 2014 in National Assembly: Let me say something about the fiscal performance of 2013/2014 and emerging challenges. The implementation of the 2013/2014 Budget is being done under very unique circumstances. According to the BPS, implementation of the Financial Year 2013/2014 Budget begun with significant revenue shortfall in the Financial Year 2013/2014 resulting in expenditure carryovers otherwise known as pending bills of about Kshs36 billion. In addition, initial transitional issues also delayed the enactment of the County Allocation of Revenue Act. It is important to know that the economic challenges experienced in the 2013/2014 have had an impact on the implementation of this Budget. view
• 13 Mar 2014 in National Assembly: Hon. Temporary Deputy Speaker, as at the end of December 2013, cumulative revenue receipts amounted to Kshs460.6 billion against a target of Kshs489.2 billion resulting in an underperformance of Kshs28.6 billion. The underperformance was in respect of Kshs10.4 billion in ordinary revenue (inclusive of Railway Development Levy) and Kshs18.2 billion in Appropriations-in-Aid (A-in-A). The underperformance in ordinary revenue was mainly reflected in excise and income taxes or the shortfall in A-in- A partly reflects underreporting by line Ministries. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from ... view
• 13 Mar 2014 in National Assembly: Hon. Temporary Deputy Speaker, with regard to expenditure, in 2013/2014 both Recurrent and Development Expenditure have experienced shortfalls which have been partly attributed to lower absorption by line Ministries and revenue shortfalls. Notably, shortfall in Development Expenditure is more than that of Recurrent Expenditure, implying that many projects are indeed behind target. By December 2013, total expenditure (based on disbursements) amounted to Kshs574.2 billion against a target of Kshs685 billion. This reflected an overall under-spending of Kshs110.8 billion. Flaws in the procurement process have routinely been cited as an impediment to Development Expenditure. Deficiencies in the procurement law have hindered ... view
• 13 Mar 2014 in National Assembly: Hon. Temporary Deputy Speaker, on the other hand the issue of underreporting by A-in-A by the spending agencies has been highlighted for a very long time but the issue has really not been addressed. To this end, there is need for a policy decision with regard to automation of collection of A-in-A. view
• 13 Mar 2014 in National Assembly: Hon. Temporary Deputy Speaker, with regard to fiscal policy and Budget framework, allow me to say the following: The Government targets to achieve fiscal consolidation by putting in measures to reduce the Budget deficit from 8.9 per cent of the Gross Domestic Product (GDP) in 2013/2014 to 6.3 per cent of GDP in 2014/2015 and 4.9 per cent of GDP in 2016/2017. It will be done by bringing down debt-to-GDP ratio to below 50 per cent in medium term while increasing absorption of external resources from 60 per cent to 80 per cent by reforming the procurement law. My Committee ... view
• 13 Mar 2014 in National Assembly: My Committee is concerned with the extent to which revenue raising strategies are going to be implemented. Indeed, any increase in taxation may weaken near term domestic demand. These have to be chosen carefully since it requires trade-offs between conflicting policy objectives. On the revenue side, substantial opportunities exist for broadening Income Tax such as redesigning the Turn-Over Tax (TOT) regime. That is to say anybody who has a business whose turnover is below Kshs3 million pays a flat tax of the annual turnover as opposed to paying the Value Added Tax (VAT). view
• 13 Mar 2014 in National Assembly: Hon. Temporary Deputy Speaker, the BPS presents forecast revenue, expenditure and borrowing estimates for the medium term. When you look at the document in Table 4, the projects will be shown there and I do not think I wish to go too much into that. Let me however say that the large Budget deficit reflects substantial debt redemption especially the planned repayment of the syndicated loan. Consequently, net external borrowing for the current fiscal year contains the planed sovereign bond estimated at Kshs30 billion. Thus, the net external financing amounts to Kshs238.8 billion up from Kshs226.7 billion estimated in the ... view
• 13 Mar 2014 in National Assembly: My Committee notes that the net external borrowing will ultimately return to trend and decline to Kshs100.7 billion in 2014/2015 but domestic borrowing is poised to The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor. view
• 13 Mar 2014 in National Assembly: rise from Kshs133.5 billion in 2014/2015 to Kshs190.8 billion in 2014/2015, partly to compensate for the absence of large external non-concessional borrowing component in the next financial year. Following this trend, it is likely that the Government will borrow from the domestic market and interest rates are likely to go high. That cannot be good for business. view