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education; enhancing efficient and a high quality health system, ensuring security for all persons and property; ‘empowering the youth and vulnerable members of the society by engaging them in gainful employment and wealth creation; implementation of the New Constitution and promoting food security. (Over the years, the Government has continued to shift more resources in infrastructure and social spending. For instance, inthe FY2011/2012 Budget, we wil increase expenditure on infrastructure by 35.53% from 1658118 inthe FY 2010/11 to 2214118 inthe FY2011/12, This amount of 2148 is an increase of 1.304% from Government spending fon infrastructure in the 2002/03FY (157728). During my previous budgets, and through the Economic Stimuli Package again living within the spirit ofa constitution that had not yet been enacted, but with the understanding of the wishes of many millions in Kenya, we had commenced the process of devolution of resources by identifying, programs atthe constituency level and funding them. Through the ESP we have made major gains in Agriculture & Fisheries, Health Care, Education and Trade in each and every part of the country. Furthermore, in the FY2011/2012 budget, we have managed to accommodate key national strategic priorities in the areas of education, health, infrastructure (rail and roads), tourism, internal security and agriculture, and cushioned the poor. Other areas that we have focused on include empowerment ofthe youth and job creation, implementation of the new constitution, and preparatory activities forthe next elections. ‘These strategic interventions, some of which are highlighted in the attached annexes, are clear proof of the Government's commitment to improve the lives of our people. Lot me at this stage thank my staff at Treasury, led by the Permanent Secretary for working extra hard and for long hours that have always extended late into the night to produce these estimates which we have already forwarded to parliament. My Assistant Minister and I are the only politicians in this building. Whatever our political inclinations, ‘we are here today and gone tomorrow. The technocrats and professionals who remain in this building are committed ‘and dedicated servants ofthis Republic who should be treated with dignity and civility | would like to express my deep appreciation to H.E President Mwai Kibaki for providing exemplary leadership that saw the economy grow from below 1% in 2008 to over 7 percent in 2007 before the global financial crisis and the post lection violence resulted in a sharp deceleration of growth to 1.7 percent in 2008, Since that time, however, under his continued strong leadership, the economy rebounded sharply to about 57 percent in 2010. This performance reflects the remarkable rise in the development expenditure from Kshs 49.7 Billion in 2002/2008 to Ksh 3038 Billion in 2010/2011. By any standards for that period, an increase of expenditure on roads from Ksh 5.14 Billion in 2002 to 66.5, Billion in 2010/11, Energy spending from 67 Billion in FY2002/03 to KSHs, 326 Billion in the FY 2010/2011, Water from 23 Billion in FY 2002/2001 to 32.78 Billion FY 20010/2011, Education from 47 Billion in the FY2002/ 2003 to 99 Billion FY 2010/2011, and, Health from 48 Billion in the FY 2002/2008 to 20.1 Billion in FY 2010/2011 is nothing, short of a development showcase. Over this period, our President may not have said much, but plenty was done. This year, the government has proposed a total development budget of Ksh 398.6 Billion. ‘Ultimately, we have done our part and I would like to assure Kenyans that 1 and the Treasury are committed to implementing the constitution. To this end, we have published the Independent Offices Bll which is now ready for tabling in Parliament, the Commission on Revenue Allocation is already in place while the relevant bill will shortly bbe discussed! in Cabinet. A layman’s draft of a comprehensive Public Financial management Bill, has been posted on the Treasury Website in order to comply with the constitutional requirement for public participation in the drafting, of bills. We are also currently working on the required amendments to the Public Audit act which will be presented to the Attomey General in due course. Despite challenges, we have done our part, and we now leave it to parliament to do its work. In con ‘matter, however, we would like to urge parliament to take cognizance ofthe following idering this 1. Kenya is not only a member of but also a major stakeholder in the East African Community. Kenya stands to benefit alot from a vibrant inclusive East African community.

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