Lawmakers oppose Treasury CS step to debt ceiling.
Lawmakers oppose Treasury CS; During is appearance before the Committees on Budget and Appropriations, Public Debt and Privatization, and the Departmental Committee on Finance and National Planning, the Treasury cabinet secretary proposed the amendment of the Public Finance Management (PFM) Act 2012.
In other words, The CS so it wise to remove current numerical debt ceiling of Ksh 10 trillion and replace it with a debt ratio of 55 per cent present value of the Gross Domestic Product (GDP).
However, members of parliament have come out strongly to oppose this move.
MP Samuel Atandi stated, We cannot allow you to continue to pile more debt in a situation where you can not pay salaries in time. You are being unfair.”
Wundayi member of parliament questioned,” I do not understand why you are recommending a 55 per cent ceiling yet you have indicated we are at 62.1 per cent.”
The cabinet secretary in his defence, cited that the country has to adopt a practical debt management policy.
He added that debt anchor framework conforms with the international best practices for settling debt limits and provides debt sustainability.