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{
    "id": 625800,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/625800/?format=api",
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    "content": "(5) That counties be allocated Kshs3.870 billion, being amounts raised through loans and grants by the national Government for specific projects at the county level. The total allocation to counties is equivalent to 32.2 per cent of the most recent audited revenue approved by the National Assembly. This allocation is, therefore, realistic, given the expected revenue collection, expected economic growth and ongoing fiscal austerity policies being implemented by the Government. The Committee further recommends that the vertical share forms the basis of the Division of Revenue Bill, 2016 that will be introduced in the House. Further, the Committee is concerned that conditional grants from the national Government are not linked with county budgets. To this end, the Committee recommends the need to put in place an inter-governmental framework to effectively deal with conditional grants and, more so, the donor-funded projects to ensure that they are well-captured in the county budgets. Further, that a proper framework for disbursement of the Equalisation Fund be expedited and finalised in good time to allow the selected marginalised counties to benefit from that Fund. The Committee further recommends that Kshs6 billion be allocated to that Fund in the 2016/2017 Financial Year. The next point is on the expenditure ceilings. The Committee recommends that the ceilings for the three arms of Government be set as follows:- (1) The National Executive - that is the ministries, departments and agencies (MDAs) – Kshs1,451.646 million (confirm figure); (2) Parliament with Kshs29.406 million of which:- (i) PSC Vote 2041 – Kshs13.458 million; (ii) National Assembly Vote 2042 – Kshs15.948 million; and, (3) Judiciary Vote 1261 – Kshs17,309 million. As you are aware, the Government has been implementing the Medium Term Expenditure Framework Budgeting for enhanced predictability in resource allocation and to ensure better planning. However, a number of projects initiated have either stalled, remained incomplete and have no direct link with the Budget Policy Statement (BPS) and the annual estimates. In this regard, the Committee recommends no new project should be introduced after the adoption of the BPS and that the annual estimates, which shall be laid in this House sometime in April, must include a detailed list of projects that are reconcilable with the Development Estimates of 2016/2017. Secondly, that in line with the Public Finance Management Regulations No.27 (5), the ceilings that are included in the BPS 2016/2017 for development and the wage bill in the medium term are binding. Third, that in line with Article 221(5) of the Constitution, which requires that the National Assembly takes into account the views of the public when finalising the Budget, this House should earmark Kshs1 billion for resources that can be used for economic stimulus programmes in areas that have not benefited before. The Committee recommends that a criterion be developed on the amount of funds to be allocated before the time of receiving the budget estimates and the procedure of identifying several projects before the finalisation of the estimates. Four, that the House approves the schedule of ceilings for spending agencies towards recurrent and development spending per programme as provided for in Schedule I of the Constitution. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}