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{
    "id": 954011,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/954011/?format=api",
    "text_counter": 121,
    "type": "speech",
    "speaker_name": "Sen. (Eng.) Mahamud",
    "speaker_title": "",
    "speaker": {
        "id": 373,
        "legal_name": "Mohammed Maalim Mahamud",
        "slug": "mohammed-mahamud"
    },
    "content": "As this House is aware, the Division of Revenue Act, 2019 and the County Allocation of Revenue Act, 2019, were assented to by the President on 17th September, 2019 and 18th September, 2019, respectively. In previous financial years, the Division of Revenue Act and the County Allocation of Revenue Act were enacted before the beginning of the financial year in which they are to apply. This year, however, these two vital pieces of legislation will now come into effect at the end of the first quarter of the financial year in which they are to apply. This has had adverse effects on the budget-making process at the county level of government and in particular the ability of counties to prepare their annual budgets and appropriation Bills. Mr. Speaker, Sir, Article 218 (1) (a) of the Constitution provides that- “Division of Revenue Bill shall divide revenue raised by the national Government among the national and county levels of government in accordance with the Constitution.” Further, Article 218(1) (b) provides that- “A County Allocation of Revenue Bill shall divide among the counties the revenue allocated to the county level of government”. The enactment of these two pieces of legislation, therefore, forms the basis upon which the two levels of government both the national Government and the county governments prepare the relevant legal instruments for expenditure of public funds. In the case of county governments, Article 224 of the Constitution provides that- “On the basis of the Division of Revenue Bill passed by Parliament under Article 218, each county government shall prepare and adopt its own annual budget and appropriation Bill in the form, and according to the procedure, prescribed in an Act of Parliament”. Therefore, the consequence of the delayed passage of the Division of Revenue Bill and the County Allocation of Revenue Bill is that county governments were by law, precluded from preparing their own annual budgets and appropriation Bills. The only remedy that was available to county governments was as contemplated under Section 134(1) and (2) of the Public Finance Management Act. However, the provisions of Section 134 of the Public Finance Management Act contemplate that the option of votes on account would arise where the Division of Revenue Bill and the County Allocation of Revenue Bill have been passed and for whatever reason a county assembly has not passed an Appropriation Bill. The Section does not contemplate the situation we found ourselves in where the Division of Revenue Bill had not been passed and the national revenue had not been divided between the two levels of Government. The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor, Senate."
}