Kibaki returned the Bill, which would have made the Budget making
process more inclusive, equitable transparent and accountable, with a
memorandum proposing more changes. He argued that "in observance of the doctrine of separation of powers"
Parliament should not get involved in the management of public
resources.
But former Kikuyu MP Paul Muite supports the Bill, arguing that MPs are not aiming at usurping the powers of the Executive.
When new districts are created without a budget in place, we run into
problems of DCs begging for houses, vehicles and fuel and this open
avenues for corruption," said Muite.
The chairman of Parliament's budget committee Otieno Ogindo welcomed Kibaki's recommendations.
"We accept the proposals. The law is overdue for enactment. We will
cede ground in a give-and-take approach. It should be prioritised for
debate and adoption," he said.
The President appears to be in agreement with MPs on clauses of the
proposed law but raises questions on sections that attempt to claw
powers from the Executive.
Said Kibaki in reference to a clause in the proposed Budget Office:
"Although the function is advisory in nature, it is nonetheless an
unnecessary intrusion into the mandate of the Executive, which should
have the power to determine its own organisational structure
independent of Parliament."
But questions linger over solutions to wasteful and corrupt spending in
top Government circles as the country's 46 per cent of gross domestic
product goes to pay questionable debts. Last week, Finance Assistant
Minister Oburu Oginga said the country's external debt stood at nearly
Sh1 trillion.
Hold accountable
Oburu argues that every newborn baby has a debt of Sh25,500 and every Kenyan pays Sh3,800 annually.
Civil society leaders question how debts were incurred. "When a
Government spends on debts which cannot be accounted for, it leaves
taxpayers disgruntled," said Mars Group Director Mwalimu Mati.
The essence of providing adequate information to the public is to hold Government accountable for managing their money.
Although Kenya fairs well according to the Open Budget Index 2008, in a
survey conducted by International Budget Partnership, it scored 57 out
of 100. This is an indication that the Government provides the public
with some, albeit incomplete, information on the Central Government's
Budget and financial activities.
Kenyans believe that the proposed laws would curb unpopular, wasteful, and corrupt spending.
South Africa is the second best country, after United Kingdom, in terms
of openness and transparency in collecting and spending public funds.
It scored 87 out of 100 on the Open Budget Index, which is based on
responses to survey questions, assesses eight key budget documents that
international good practice requires all governments to publish.
But even as we wait for this law to be passed and enacted, some
questions remain unanswered. Is our Budget negotiated before approval?
Is there sufficient transparency in the Budget making process? Why
should the poor, who have no say in the accruement of the debts, bear
the burden of debt repayment?
Can Kenyans put pressure on the Government to fight corruption, to put
in place the required debt management and monitoring mechanisms and to
demand for debt relief as proof of its commitment to alleviate poverty?
Setting priorities
Just like a household budget, the national Budget deals with revenue
and expenses. It involves setting priorities, estimating, allocating
and monitoring. It must estimate what it will cost the country,
allocate amounts to its departments and provinces, or regions and
effectively monitor allocations.
The Fiscal Policy should cover issues like size of the state job
creation, social development and redistribution. All these have
budgetary implications.
South Africa has a budget council whose function is to co-ordinate the
different interest of national and provincial governments to make sure
that agreement is reached on how to share revenue.
Drafting of a national Budget is not easy. It involves drawing up
estimates, redrafting, and transparent negotiations. Experts argue that
the overall budget has weak legal and institutional framework that need
review.