Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 641369,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/641369/?format=api",
    "text_counter": 294,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "informed by the cash balances held in a particular county government’s bank account at the CBK. The county governments closing monthly balances for the period June 2015 to February 2016 are shown in Schedule “F”, which is attached to the Statement. The overdue amounts for each county with respect to allocation for equitable share Level 5 and Danish International Development Agency (Danida) health funds as at 31st of January, amounted to Kshs47,664,881,584 as shown in Schedule “G,” which is attached. Disbursement in respect to conditional grants, that is, fuel levy, maternal healthcare and user fees are dependent on each county meeting the set conditions. It is, therefore, not correct to allege that any delay in disbursement of funds to county governments has led to default in statutory obligations, disruptions of planned activities, programmes and accumulation of bills by county governments. (3) Regarding reasons for delays in disbursement of funds to counties, the Government funds the budget primarily from ordinary domestic revenues (tax revenues) and domestic borrowing. Some of the taxes have statutory deadlines when they fall due and, therefore, the Government cannot collect them before the due date. Accordingly, when there is a shortfall in revenue performance, the Government will bridge the gap through short-term borrowing for each cash management purposes, as authorized by Parliament under Section 15 (3) of the Public Finance Management (PFM) Act. This short-term borrowing is capped at 5 per cent of the most recent audited Government revenues. If the short-term borrowing is unable to bridge any deficit based on the cash flows, then there are delays in disbursement of funds to county governments as well as Ministries, Departments and Agencies (MDAs). On a daily basis, the National Treasury accounts for the revenues credited in the national exchequer accounts and determines through the cash and liquidity management the amounts available for funding of consolidated funds services, in which case, is public debt, pensions, salaries and allowances to constitutional office holders, counties in accordance with the County Allocation of Revenue Act and payment from national Government and MDAs. However, it should be appreciated that the Government has endeavored that for any county government with a balance of below Kshs3 million, the next monthly disbursement is released immediately. (4) Regarding measures taken by the national Government in addressing the issue, the National Treasury has taken the following measures to ensure prompt disbursement of funds to county governments:- (i) Development of a national legislation and policy framework to enhance county governments’ own-source revenue to cushion them against delays in disbursement of the equitable share raised nationally. (ii) Consolidation of annual monthly cash flow based on projected revenue collections by receivers and collectors of revenue and expenditure patterns for MDAs and county governments. (iii) Automation of the Exchequer release process and implementation of the National Treasury Single Account for the national Government and thereafter, roll it out to county governments to minimize idle cash balances. 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"
}