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{
    "id": 357767,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/357767/?format=api",
    "text_counter": 60,
    "type": "speech",
    "speaker_name": "Hon. A.B. Duale",
    "speaker_title": "",
    "speaker": {
        "id": 15,
        "legal_name": "Aden Bare Duale",
        "slug": "aden-duale"
    },
    "content": "Hon. Speaker, Sir, I beg to move that The Division of Revenue Bill, 2013 be now read a Second Time. The principal object of this Bill is to provide an equitable division of revenue raised by the national Government between the county governments and the national Government. This is especially for the 2013/2014 Financial Year. Secondly, this is in line with the constitutional provision of Article 201(b)(ii) and I would like to read it out. It says:- “The public finance system shall promote an equitable society and, in particular, revenue raised nationally shall be shared equitably among national and county governments.” So, the object of this Bill is drawn from the provision of Article 201. In preparing this Bill, the national Government was guided by Article 203 of the Constitution which sets the criteria that should be used in looking at the equitable distribution of resources between the two levels of governments. That Article sets the parameters, the guidelines and the principles that should be used and how the national resources will be shared equitably. Among the principles, at the outset, is national interest. That is key. The public debt and other national obligation of the government is another principle. The needs of the national Government; that is the need to ensure that county governments are able to perform the assigned duties and functions very well, developmental and other needs of counties, stable and predictable allocation of revenue to counties is also a principle. These are the principles that are in Article 203 that set the criteria on how the resources will be allocated. In table four of this Bill, we have a memorandum that shows how the national Government will take into account the criteria in looking at the vertical division of revenue that has been raised, including the financing requirements of the county governments to make sure that both the needs of the county governments and the needs of the national Government have been taken into consideration and where a financing gap has been found, then a solution is to be found. Hon. Speaker, Sir, Article 203 of the Constitution also provides that equitable share of the revenue raised nationally is allocated to county governments. It says “not less than 15 per cent.” From all the revenue collected by the national Government, the county allocations will be a minimum of 15 per cent. In this Bill, we will show it later on that the 15 per cent has been surpassed because it is at 25 per cent. This is again subjected to the CRA formula that has been passed by this House. At the outset, I also want to share with the House that since I tabled this Bill, there has been further consultation between the CRA and the National Treasury in order to come up with an amicable solution and a win-win situation for both levels of governments. In this regard, I will"
}