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{
    "id": 420262,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/420262/?format=api",
    "text_counter": 253,
    "type": "speech",
    "speaker_name": "s",
    "speaker_title": "",
    "speaker": null,
    "content": "The reduced allocation to the roads, however, implies that the programme has not sufficiently demonstrated capacity to absorb resources, hence the reduced allocation, or that the roads are expected to contribute less to economic growth than rail transport. My Committee, therefore, urges the memorandum to be provided with the annual estimates under Section 38(1) (a) of the Public Finance Management Act, 2012, to provide explanations for the proposed reduction to expenditure allocations for the Road Transport Programme. Hon. Temporary Deputy Speaker, on inter-governmental fiscal relations and division of revenue, allow me to say that it is encouraging that the BPS recognises the hiccups faced in the early months of devolution such as hurried budgeting in counties, capacity problems in planning and budgeting, revision of county budgets and problems of transfer of functions. These problems were addressed through the Inter-governmental Budget and Economic Council and through direct support by the National Treasury although as we said this morning, it will be very helpful if Parliament can also be involved in some of these discussions in a more general way. The Committee notes that the BPS considers as critical the matter of sharing revenue between the national Government and county governments. The Budget and Appropriations Committee notes that in determining revenue sharing, the following factors need to be considered: 1. Adherence to the county allocations threshold set in Article 203(2) of the Constitution. Revenue allocations to the counties should be at least 15 per cent of nationally raised revenue calculated on the basis of latest audited and approved accounts, in line with Article 203 of the Constitution. That is the law. 2. Ideally, revenue allocation should be based on costing of the functions and needs of each level of Government. Unfortunately, this has not been done, making it difficult to determine the quantum of revenue that actually ought to be set aside for counties. We are still trying our best to do the right thing on this one. 3. Adherence to criteria set out in Article 203(1) of the Constitution. The Constitution requires that the revenue allocations take into account the elaborate provisions set out in Article 203(1). 4. Determination of conditional and unconditional allocations as per Article 202(2) of the Constitution. The Constitution allows the national Government to allocate resources to counties from its own revenue share as conditional or unconditional allocations. We will be proposing this today."
}