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{
    "id": 1488232,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1488232/?format=api",
    "text_counter": 329,
    "type": "speech",
    "speaker_name": "Molo, UDA",
    "speaker_title": "Hon. Kuria Kimani",
    "speaker": null,
    "content": "we speak, if you are to do a proper audit of our loans, and include pending bills as they amount to a loan to Government, then we stand a risk of exceeding that rate as a percentage of the GDP as passed by this House. Therefore, it is clear that if you have a revenue shortfall, then there must be an adjustment to the budget. That is why this Bill was reducing the proposed allocation from Ksh400 billion to Ksh380 billion. It is very important to remind the senators and Governors that even with the proposed reduction of that allocation of equitable share to counties, it is still 24.2 per cent of the last audited and approved estimates of this Government for the Financial Year 2021/2022. Therefore, this is way above the constitutional threshold of 15 per cent as contained in Article 203 (2) of our Constitution. With this reality on the ground, what should we do? The expectations to the counties would be that, even though they might have prepared their budgets for the Financial Year 2024- 2025 based on the previously approved equitable share of Ksh400 billion, then they should go ahead and prepare a Supplementary Budget to cut on the expenditures, similar to what the national Government did in this House. In addition to doing that, I would encourage the Commission on Revenue Allocation, that when they are coming up with the new formula for sharing of resources, then let some weighted points be given for raising own-source revenue. We have counties that have the ability to improve on their own-source revenue, but they do not do it. We have a lot of pilferages in terms of when people go to pay for charges like in hospitals. They are paid in different peoples’ accounts. If you go to the parking fees that are charged by counties, there is so much money that is lost here. My plea to the county governments is this: Do a supplementary budget, cut the budget and this is the consequence of a shortfall in revenue, when there is no revenue and they cannot borrow more. You have to cut on expenditures. As it has been said, we must live within our means and make sure we prevent pilferage of resources. Counties must find out ways of raising their own revenues to support themselves. I think there was a study that was done a few months that showed counties that did very well, including the great County of Homa Bay led by my predecessor, Hon. Gladys Wanga. That is the way to go. Counties must find a way of raising their own revenues, not to rely only on those that are raised by the national Government, so that the both levels of government can work harmoniously. Thank you, Hon. Temporary Speaker."
}