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    "id": 647469,
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    "content": "the transfers and reporting. A short while ago, we heard discussions regarding counties that are in serious material breach of financial regulations. Therefore, our Committee recommends that it is prudent for the National Treasury to consider establishing a dedicated unit within its structures that will deal with fiscal matters and all other matters relating to the county governments to ensure intergovernmental administration of fiscal issues. Mr. Temporary Speaker, Sir, we have also observed that questions have been raised regarding the basis on which the national interests under Article 203 has been determined because the national interests projects which are identified in the Bill only relate to the national Government projects. However, the Committee noted that national interests is not equivalent to the national Government’s priorities and that national interests must be determined by the two levels of Government based on agreed priorities. Therefore, going forward, what is classified as national interest should be defined through an intergovernmental consultation at Intergovernmental Budget and Economic Council (IBEC) with the approval of Senate, so that by the time it comes here, it does not create a problem as it has done. The key page in this Bill is the schedule on page No.5 which is the allocation of revenue between the two levels of Government for the next financial year. The figures provided are very clear because under the national Government allocation, the total amount of sharable revenue is Kshs1.38 trillion. Out of that, it is proposed that Kshs302 billion, which is an equivalent of 32.3 per cent, be given to the county governments while Kshs1.099 trillion be given to the national Government. Part of that Kshs1.099 trillion to remain at the national Government includes monies that will be transferred as conditional grants to the county governments to cater for free maternity, health care, leasing of medical equipments, Level 5 hospitals, compensation for user fees, allocation from the fuel levy fund and the equalization fund. All these things are part of the Kshs1.099 trillion allocated to the national Government. Mr. Temporary Speaker, Sir, out of the Kshs302 billion to be forwarded to the counties, Kshs280 billion is the equitable share. The balance of Kshs21.8 billion is the conditional share which includes the free maternity, health care, leasing of medical equipments, Level 5 hospitals, compensation for user fees and others which are listed on page No.5. Those are the actual figures that are proposed in terms of divisions between the two levels of Government. To arrive at that, there are workings on the memorandum to show how these figures were arrived at. I would like to draw the Member’s attention to the fact that the key item in determining how much money goes is the growth in revenue. The Committee noted that in arriving at the equitable share of revenue, the revenue growth factor of 7.8 per cent was used. Mr. Temporary Speaker, Sir, we are aware that the average revenue growth factor coupled with the growth in Gross Domestic Product (GDP), on a three years' average was coming to 10.2 per cent. However, concern has been expressed that the general collection of revenue has been very poor this financial year. In fact, as at December this year, the collection of revenue by the Exchequer was Kshs65 billion below the target for this financial year. This coupled with the fact there are huge borrowings has made it 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"
}