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{
    "id": 1085424,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1085424/?format=api",
    "text_counter": 39,
    "type": "speech",
    "speaker_name": "Tiaty, KANU",
    "speaker_title": "Hon. Kassait Kamket",
    "speaker": {
        "id": 13493,
        "legal_name": "William Kamket Kassait",
        "slug": "william-kamket-kassait"
    },
    "content": " Hon. Temporary Deputy Speaker, I beg to move the following Motion: THAT, this House adopts the Report of the Committee on Delegated Legislation on its consideration of the Public Finance Management (Equalisation Fund Administration) Regulations, 2021, laid on the Table of the House on Thursday, 1st July 2021, and pursuant to the provisions of Section 205(1) of the Public Finance Management (PFM) Act, 2012, approves that Public Finance Management (Equalisation Fund Administration) Regulations, 2021, published as Legal Notice No. 54 of 2021. The Equalisation Fund was established under Article 204(1) of the Constitution which requires that 0.5 per cent of all revenue collected by the national Government each year, calculated based on the most recent audited revenues as approved by the National Assembly, is paid to the Fund. As a pre-condition on the utilisation of the Equalisation Fund, Article 216(4) of the Constitution requires the Commission on Revenue Allocation to determine, publish and regularly review a policy in which it sets out the criteria by which to identify the marginalised areas to benefit from this Fund. Hon. Temporary Deputy Speaker, this Fund has had so many issues from the beginning. There was no allocation to the Equalisation Fund at the onset in the 2011/2012, 2012/2013 and 2013/2014 financial years because the Commission on Revenue Allocation had not yet released the first policy. However, when the Commission on Revenue Allocation released its first policy, Kshs12.4 billion was appropriated in accordance with the first policy to finance projects in 14 counties that were identified as marginalised for administrative expenses. However, this Fund has faced a lot of legal challenges. As soon as the first disbursements were made, there were legal petitions in court and the first Regulations were declared null and void. The National Treasury was directed by the court to go and make new Regulations. This is where we are now. If you look at the second policy for the Equalisation Fund - remember the first policy came and the people who went to court made it difficult for the utilisation of the funds - the counties that are supposed to benefit from the recommendation of the Commission on Revenue Allocation have increased from 14 originally to 34 counties. That makes it, if you look at Page 9 of the Report, 134 constituencies that shall benefit from this Fund. The improvement that has come from the new Regulations is something that Members will want to take note of. As a way of addressing the issues that were raised in court, the new Regulations, apart from meeting all the legal statutory requirements including the timelines and other provisions of the The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}