MPs raise fresh Budget concerns

By ALEX NDEGWA

MPs have warned the Executive over alleged attempts to sideline Parliament in the planning of the Budget, raising prospects of a repeat of last year’s standoff.

House Budget Committee on Wednesday accused the Treasury of scheming to exclude MPs from participating in preparation of the Budget, pointing to a looming battle.

There’s a deadlock over the Finance Bill, which the Government has withdrawn twice, after failing to persuade MPs not to cap interest rates banks charge on loans.

Budget committee chairman Elias Mbau claimed the Executive deliberately failed to submit the Budget Policy Statement, whose statutory deadline for presentation to Parliament lapsed on Wednesday, to take advantage of the recess.

MPs’ recommendations after scrutiny of the statement are meant to inform the Budget estimates, which the Finance Minister must submit to Parliament by April 30 every financial year.

Mbau said the Government was aware of the House recess and should have submitted the statement, which states the broad strategic macroeconomic issues that will be the basis of the Budget, much earlier.

But, he claimed, authorities schemed to exploit a provision in the Fiscal Management Act that requires that if the House is on recess, the statement be presented within the first week after it reconvenes. Parliament reopens on April 17, 13 days before Acting Finance Minister Njeru Githae is due to submit estimates of revenue and expenditure for the 2012/2013 financial year.

The committee is supposed to consult each departmental committee and table the report on the Budget Policy Statement not later than April 15, ideally for the Treasury to have two weeks to factor in MPs’ proposals.

"It means Parliament will not have enough time to discuss the statement and make recommendations for the Executive to consider in preparing the Budget," Mbau said.

MPs’ input

He, however, warned Githae that the Executive is mistaken if it hopes to get away with a budget that does not consider MPs’ contributions.

"Treasury must brace for a near shredding of the budget. MPs will reorganise it and make reallocations if the Executive’s proposals do not benefit from MPs’ input," he told The Standard On Sunday.

Mbau said the Treasury had set the stage for a "push and pull" with Parliament, as witnessed last year. At the time, Speaker Kenneth Marende excused then Finance Minister Uhuru Kenyatta, citing transitional provisions, but directed the Treasury to comply in the subsequent years.

"The Speaker was clear the remission would not be given this year. The Constitution mandates Parliament to inform preparation of financial estimates and the Executive would not succeed with its mischief," he added.

The Maragwa legislator said that last week the committee had scheduled a workshop in Naivasha to discuss the statement, a broad outline of strategic macroeconomic and fiscal policies underpinning the year’s budget.

Mbau said the Act does not "merely" require the minister to submit the document but its spirit is that it’s done not later than March 21 so MPs have time to interrogate the proposals.

The MP proposed Treasury must implement cost-cutting measures in Budget to reduce burden on recurrent spending.

"There could be the temptation to include suspect allocations given share for wages of an expanded Parliament and devolved Government," he said.

Last year, the Budget committee clashed with the Treasury because of the failure to provide funds for employment of teachers. The committee initially reallocated Sh2 billion meant for the National Security Intelligence Service to the Teachers Service Commission for employment of 28,000 teachers.

But in an intriguing turnaround, the committee restored the Sh2 billion to the NSIS. The changes occurred following a declaration by Uhuru, then Finance minister, that new salary increments to teachers and police will hurt the economy.

Teachers’ demands

Later, the Kenya National Union of Teachers (Knut) rallied teachers to a four-day strike that paralysed learning in public schools, forcing Uhuru to yield to their demands.

In the deal, the Government offered permanent employment to the 18,000 teachers, who had been on contract terms, and pledged to hire an additional 5,000 teachers in January next year.

Earlier in Parliament, the Government had tactfully torn down the clock to prevent MPs from slashing Sh2.7 billion from the NSIS budget.

Gwasi MP John Mbadi had moved a popular amendment to the Budget committee report to have the amount shaved off from the Sh13.1 billion NSIS allocation.

Mbadi had proposed that Sh1.7 billion be reallocated to increase the salaries of the police force and the other Sh1 billion moved to the Strategic Grain Reserve to boost food security.

The MP questioned the huge allocation to the NSIS, saying in the previous financial year, the spy agency had been allocated Sh9.7 billion.

In the subsequent supplementary budget, a further Sh900 million was approved, raising the NSIS budget to Sh10.5 billion.