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{
    "id": 904156,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/904156/?format=api",
    "text_counter": 209,
    "type": "speech",
    "speaker_name": "Sen. (Eng.) Mahamud",
    "speaker_title": "",
    "speaker": {
        "id": 373,
        "legal_name": "Mohammed Maalim Mahamud",
        "slug": "mohammed-mahamud"
    },
    "content": "This puts to question the realism of approved budget at the counties in view of optimal utilisation of development allocations. The expenditure of Economic Classification indicates that there is growing trajectory of personal emoluments, which recorded the highest increase at Kshs151 billion in the period under review, compared to the previous years, whereas development expenditure is going down. This is an indication of rising nondiscretionary expenditure, which could mean that counties are still recruiting and spending additional expenditure on personnel emoluments. This is also likely to be a source of potential fiscal risk build up, especially in view of the decreasing utilisation of development outlays. Such an outcome is likely to lead to inflexibility in the budget or reduction of fiscal resources, whereby resources towards development expenditure are further constrained. Similarly, Operation and Maintenance component of the recurrent budget has increased marginally to Kshs85.8 billion from Kshs84.7 billion in the previous financial year. The fiscal responsibility principles in both the PFM Act 2012 and PFM Regulation outline fiscal limits on expenditure relating to wages and benefits at 35 per cent of the county‟s total revenue. However, the share of total personnel emoluments to total revenue available to counties for the period was at least 39 per cent and, therefore, breaching the legal limit. The less than expected performance in development expenditure is perhaps indicative of several challenges affecting counties. Some of the challenges include election exigencies that may have disrupted continuity in service delivery. In addition, there is weak technical and administrative capacity impeding counties to actualise programme implementation during the period under review."
}