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{
    "id": 436814,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/436814/?format=api",
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    "content": "It is about prudence. If you look at the Public Finance Management Act, it talks about prudence. This is also further about fiscal responsibility. For us, as the Senate, because our mandate is more on county governments, we will be expecting that whatever counties get is used well. I do not think there will be any compromises on this. It must be used well noting that that the purse or the resource envelope is limited. Mr. Deputy Speaker, Sir, the other issue that has been taken into consideration is about the relationship between the two levels of Government. That must be maintained, especially with regard to Articles 186 and 187 of the Constitution which allow any level of government to transfer any functions that are allocated to it to another level so long as the level of government has the capacity to carry out those functions that have been retransferred. That level should also be able to get the resources that are required for the performance of that function. In addition, any revenues collected in the delivery of that function, goes to the level of government which is doing the function, notwithstanding that the constitutional responsibility still lies with the level of government that is assigned that responsibility. Very quickly, because I did not intend to take a lot of time, these proposed allocations are a product of a lot of work by the Committee on Finance, Commerce and Budget. I want to take this opportunity to thank the Committee for doing a good job. However, it is also important for Members to know that the National Assembly had its take on this matter as well. Other stakeholders that are involved in the budget-making process have been put on board. So, really, this just to provide the background that this process is one that has involved so many stakeholders, other role players, including our committee that, as I have said, has done a good job. Finally, in the proposals in this Bill, there is a proposal to do away with conditional grants. Conditional grants are conditional; they are not a must. They are there by law. If the national Government wishes to engage in conditional grants they can do so either on a county by county arrangement or even generally through the Summit, discussions between the two levels of government or the Intergovernmental Budget and Economic Council (IBEC), which is the financial and budget arm that deals with the two levels of government. However, the danger of conditional grants lies in national government dictating to counties what they must do with money. This is very important. It is not the business of the national government to tell counties: “We are giving you Kshs5 billion so that you can improve village polytechnics,” Village polytechnics are already devolved to counties. They are a function of counties. It is up to each county to decide how much of the money they get to deliver the function that is allocated to them other than the Government trying to influence through conditional grants by saying: “Use this money to do this or that.” So, the logic for the national Government not suggesting conditional grants is based on that fact. If I can just summarise, because Members have had time to look at these proposals, the proposed amount is that counties will be getting Kshs226.6 billion this financial year as money to perform the functions that are bestowed upon them. I want to repeat, this is way above the legal requirement, which is only 15 per cent. Use whatever accounts you want to use, the law has been met. This is the threshold of 15 per cent. The The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate."
}