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{
    "id": 1382834,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1382834/?format=api",
    "text_counter": 88,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "Budget, we have had extensive engagement with the National Treasury on how it intends to regularize the arrears to equalization fund that has not been released. The National Treasury made commitment in writing to the committee that it intends to comply over the next four years. However, the arrears allocation even though it is positive and it is an excellent gesture, because this has not happened before, falls short of what they wrote to us in terms of commitment. Therefore, that brings the equalization fund allocation to Kshs9.98 billion, including that Kshs3.2 billion for allocation. Mr. Speaker, Sir, additional expenditure pressures emanating to county government in terms of statutory deductions, including the proposed housing levy and increased National Social Security Fund (NSSF) contributions, which reduces resources for county government, also exert more pressure on the county government resources. In view of the foregoing, the committee made both policy and financial recommendations. Among others, the policy recommendations include- (a) That, the National Treasury prioritizes disbursement of equitable share to counties in line with the cash disbursement schedule approved by this House; (b) That, the National Treasury in collaboration with the Council of Governors (CoG), should fast-track development of the Integrated County Revenue Management System (ICRMS) and submit to the Senate, the status report of the progress of that system, in order to enhance county governments own source revenue collection; (c) That, the National Treasury should expedite the approval of payment plan of outstanding Contribution in Lieu of Rates (CILOR), to county governments. This is for Government facilities on whose behalf revenues are supposed to be paid to county governments from the defunct local authorities before the advent of devolution that has remained pending, including those that are also accumulating up to now. Mr. Speaker, Sir, also, the committee recommends: That, the National Treasury expedites finalisation of the proposed framework for sharing of mineral royalties’ revenue among the national Government and county governments. Our recommendation is that the proposed allocation of shareable revenue to county governments for Financial Year 2024/2025, in the considered opinion of the Committee, should not be less than Kshs415.9522 billion based on the following factors: (a) The baseline of Kshs385.425 billion, being the approved allocation in the last Division of Revenue Act (DORA); (b) Adjustment for absolute revenue growth of 6.4 per cent which is based on the actual ordinary revenue growth realised in the Financial Year 2022/2023; (c) Further, adjustment by repurposing of the scrapped MES programme, that is shared medical equipment that the counties still need to have for Kshs5.86 billion; (d) The total additional allocations to counties should stand at Kshs55.453 billion; and, (e) That, the allocation to the equalization fund for Financial Year 2024/2025 be set at Kshs7.852 billion in line with the most recent audited and approved accounts by the National Assembly of Kshs1.570 trillion. The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Director, Hansard Services, Senate."
}