Raried MP Otiendo amollo had raised a point of order on Standing Order 244C with regard to the introduction, consideration and passage of the Finance Bill, 2023.
The Speaker of the National Assembly Moses Wetang’ula has ruled that the Finance Bill should be submitted for debate in the House before April 30th in each year.
In a communication issued during debate in the House, the Speaker told MPs that Parliament is at liberty to prioritize consideration of the Bill before or after the presentation of the Budget Statement by the Cabinet Secretary for National Treasury and Economic Planning.
The Speaker made the ruling after Rarieda MP Otiende Amollo rose on a Point of Order to ask for procedural guidance on adherence with Standing Order 244C with regard to the introduction, consideration and passage of the Finance Bill, 2023 by the House.
The MP had sought to know whether it was right for the Finance Bill to have been submitted in April, published and considered before the reading of the budget by the CS in the House.
Amollo argued that Standing Order 244C outlines a particular order requiring the Cabinet Secretary for the National Treasury to make a pronouncement of the Budget Policy Highlights and Revenue raising measures for the national government and thereafter present a legislative proposal which is published and introduced as a Finance Bill.
According to him, a strict reading of the Standing Orders would indicate that the House had jumped the gun by concluding the Second Reading of the Finance Bill before the budget was formally presented to the House.
However, in his communication, Speaker Wetang’ula clarified that while that may have been the case then, following a successful petition filed by Busia senator Okiya Omtatah challenging the constitutionality of the Provisional Collection of Taxes and Duties Act, in July 2019, the 12th Parliament amended the Public Finance Management Act through the Statute Law (Miscellaneous) Act, (2019). The resultant effect was the introduction of Section 39A into the Act.
The Speaker told the House that following this move, the CS Treasury and the House had forthwith adhered to the orders of the court with the Finance Bill being introduced in the House not later than April 30th every year since then.
“The cabinet secretary and the House have consistently adhered to the orders of the Court in Okiya Omtatah Okoiti Cabinet Secretary (CS), National Treasury and 3 others (2018) and Section 39 of the Public Finance Management Act, (2012).
“This clearly signifies that Section 39A of the Public Finance Management Act, (2012) is the operative provision with regard to the introduction, consideration and passage of a Finance Bill,” said the Speaker in his communication.
Wetang’ula pointed out that while the plain reading of Section 40(3) and 40(4) of the Act implies that the CS for National Treasury is required to submit the legislative proposal setting out the revenue raising measures on the same day that he or she makes a pronouncement on the Budget Policy Highlights, the amended Section 39A requiring the CS to submit a Finance Bill not later than 30th April every year is the most recent one and therefore should take precedence.
At the same time, the Speaker also asked the Procedure and House Rules Committee to address the variance between Standing Order 244C and Section 39A of the Public Finance Management Act.
“I guide that the Procedure and House Rules Committee notes the variance between Standing Order 244C and Section 39A of the PFM Act and include in the Standing Order in the items earmarked for review when it next proposes amendments to the Standing Orders”, the Speaker directed.
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