23 May 2019 in Senate:
There is urgent need for implementation of a mechanism of mobilising of revenue for counties that will ensure increased revenue collection and also safeguard counties from collecting substantially less revenue than previous similar periods. In fact, a policy was tabled in this House, which aimed to develop a mechanism to enhance revenue collection measures in the counties. We should think of how to make it become law.
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23 May 2019 in Senate:
The performance of own-source revenue collection for the period compared to the annual targets indicates that Tana River, Migori, Kwale, Uasin Gishu, Nakuru and Bomet performed very well. According to the formula by the Commission on Revenue Allocation (CRA) if a county improves in revenue collection, it gets some bonus. The few I have mentioned did very well. The counties with the lowest performance are Kisii, Mandera, Garissa, Nyamira, Busia, Wajir and Taita-Taveta.
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23 May 2019 in Senate:
Notably, the revisions in the annual target for own-source revenue collection during the year, as reported by the CoB, reduced from Kshs55.92 billion at the beginning of the financial year to Kshs49.22 billion by the end of the financial year. This reflects overly optimistic revenue targets at the beginning of the financial year or the in-year underperformance of revenue that often results to adjustments of the county expenditures through supplementary budgets when targets are revised.
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23 May 2019 in Senate:
Moving to county exchequer releases, during the period under review, the CoB authorised withdrawals from the County Revenue Funds amounting to Kshs324.12 billion. Notably, 77.7 per cent of the withdrawals were for recurrent expenditure and the 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.
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23 May 2019 in Senate:
remaining 22.3 per cent were for development expenditure, for both the county assemblies and County executives. Moreover, a total of Kshs32.53 billion were funds for county assemblies and Kshs291.59 billion for county executives.
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23 May 2019 in Senate:
Indeed, a bulk of the recurrent spending was geared towards salaries and allowances that are mostly non-discretionary. Further, it is necessary to prioritise development spending in support of productive investment in counties that can result to improved service delivery with long-term sustainable impacts on increased job creation for the youth and poverty alleviation.
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23 May 2019 in Senate:
The Committee made the following observations- (1) There is delay in release and submission of the CoB implementation reports for counties. There is need to engage the CoB with a view of addressing the cause of such delays, as it greatly impedes timely fiscal oversight and monitoring of county budget performance. (2) There is substantial shift of development allocation to recurrent outlays during budget execution and thus also breaching legal threshold. There may be need to enhance oversight especially by the county assemblies to curtail supplementary budgeting that breaches fiscal responsibility principles. In addition, there may be need to assess ...
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23 May 2019 in Senate:
(5) It will be important for the National Treasury and the implementing agencies to report to the Senate on the status of the conditional allocation, such as construction of county headquarters, leasing of medical equipment and various conditional allocation in form of grants. In fact, because of the confusion, this House recalls that we suspended the funding of medical equipment because we did not see why it was appearing in the Division of Revenue Act (DORA) and County Allocation of Revenue Act (CARA). That is a matter of mediation between us and the National Assembly. (6) The stagnant performance of ...
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23 May 2019 in Senate:
addressing leakages, poor revenue policies and practices that hinder economic optimization in counties. (7) The delay in disbursement of funds has affected budget implementation in counties. The current Cash Disbursement Schedule approved by the Senate in line with CARA, 2017 was not adhered to, as allocations such as the equitable share were not released according to the expected timeliness. Huge amounts of funds were released barely two months to the end of Financial Year 2017/2018. These delays hamper implementation of development projects, partly resulting into accommodating of pending bills, thus affecting overall service delivery in the counties. Mr. Temporary Speaker, ...
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23 May 2019 in Senate:
(i) stop further recruitment of new employees; (ii) develop a mechanism of reducing the expenditure on personal emoluments to ensure it is within the acceptable limits, and, (iii) finally, submit the mechanism in (ii) above to the Controller of Budgets within six months. Mr. Temporary Speaker, Sir, this report was submitted to us late. Therefore, in future, we expect to, at least, table the report on quarterly basis, so that it is current and we are able to follow. In terms of budget preparation and implementation, there could be weaknesses. From our contact with the Controller of Budget yesterday on ...
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