HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept
{
"id": 469048,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/469048/?format=api",
"text_counter": 79,
"type": "other",
"speaker_name": "",
"speaker_title": "",
"speaker": null,
"content": "based on this national revenue that we are allocating. So, you will find a situation where counties have already prepared their budgets and some forwarded them to their county assembly. The risk is that because the budget that they have prepared is based on the initial recommendation of the CRA, several of these counties will actually have a deficit in their budgets. In other words, the amount of money that they will actually get from national revenue will not be enough to finance the projects that they have planned for. Mr. Speaker, Sir, again, the second point of concern is that some of the county governments are not conscious of the functions that have been devolved to them. So, you will find a situation where counties have budgeted for functions which are not within their mandate, but that of the national Government. This is fairly common. We read about it everyday in the newspapers. Unfortunately, because of the teething problems and time constraints in which all these things came up, there are questions of capacity. Therefore, some of the counties have not taken time to really appreciate that some of the provisions that they are making in their budgets, do not actually relate to the county. So, it is important for the Senators also to advise their county governments not to budget for anything outside their mandate. What is for the national Government is for the national Government. The money that is being allocated here is for the functions that are to be devolved, effective from 1st July, 2013 and provided for in Schedule Four of the Constitution. Mr. Speaker, Sir, again, it is very important for these county governments, in addition to the issue of the budgets, to also appreciate that although the Constitution provides for county governments to borrow, there are specific criteria that are required within the Public Finance Management Act. That is not really easy for the counties. The CRA has, indeed, advised the county Governors in a recent meeting, that in the first three years of this county administration, counties are encouraged not to borrow loans to finance their programmes. This is because if you get into loans, the question of sustainability will come up and future revenue allocations will end up in loans. Secondly, the capacity of managing those loan portfolios for counties that are still very young and do not even have the capacity is a challenge. So, again, that is a matter that we should be very conscious about. I know that there are a number of counties that are thinking of that and we should be very conscious. Mr. Speaker, Sir, the CRA has also done a wonderful job. In fact, they stand to be commended. They have done the assessment and a very good recommendation on what, in fact, these county governments should get out of the national revenue. We are conscious of the fact that the total public expenditure in the next financial year is expected to be Kshs1.64 trillion. Out of that Kshs1.64 trillion, what the Bill recommends should go to the county governments is Kshs210 billion. So, it is not surprising that the very able Chairman, Mr. Cheserem, at every opportunity, has been urging the Members of the Senate to ensure that counties get their fair share of this revenue. Mr. Speaker, Sir, it would be fair also to mention the concerns that have been raised by the national Government, specifically the Treasury when we had a meeting with them on this Bill, so that Members are also in the picture. The public expenditure of Kshs1.6 billion that I have referred to does include some of the national obligations that have to be paid. For example, servicing of the public debt, which in the next financial year is expected to be almost Kshs400 billion. This is the principal plus interest payments 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."
}