Mudavadi Warns of Consequences if MPs Rejected the Finance Bill 2024
“Rejection of Finance Bill Would Signal No Confidence in Ruto,” Says Mudavadi
Prime Cabinet Secretary Musalia Mudavadi has cautioned against the severe repercussions of rejecting the Finance Bill 2024. According to Mudavadi, such a rejection would essentially amount to a vote of no confidence in President William Ruto.
Hours after MPs passed the Finance Bill 2024 during its second reading, with 204 MPs voting in favor and 115 against, Mudavadi addressed the potential fallout had the bill been rejected.
“If any government’s Finance Bill is rejected, it inevitably leads to a vote of no confidence. The government would then be required to step down, prompting fresh elections,” Mudavadi stated. He stressed that the implications of rejecting the bill are far from trivial.
He pointed out that the government is currently in dire need of stability, especially given the economic challenges it faces. Mudavadi noted that the current administration found the nation’s coffers empty and estimated that it would take around three years for the economy to stabilize.
“Governments globally rely on two primary methods for raising funds: taxation and borrowing. This Finance Bill is essential for generating the necessary revenue,” he explained.
Defending the government’s decision to impose new taxes, Mudavadi argued that this is the only viable path to economic recovery. He outlined the tough choices facing the President: continue borrowing at high rates or reduce expenditures while increasing local revenues.
Mudavadi acknowledged the peaceful protests led by young people against the Finance Bill, recognizing their right to express their democratic rights. He posed a critical question: “Without these taxes, where will the President find the funds to support education and other development projects?”
During a development tour in Eldama Ravine, Baringo County on Friday, Mudavadi underscored the necessity of the Finance Bill for the country’s fiscal health.
The Bill now advances to the Committee of the Whole House for a detailed examination of proposed amendments. MPs are expected to vote on the final bill on Tuesday, June 25.
This development is a crucial step in securing the financial stability and development agenda that President Ruto aims to implement.
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