Kisumu City County Budget Review and Outlook Paper 2014/2015

Abstract

This second County Budget Review and Outlook Paper (CBROP) of the County Government of Kisumu comes against a backdrop of growing stabilization on the structures setup within the county. It has been prepared in conformity to the Public Finance Management (PFM) Act, 2012 and contains a review of the fiscal performance of financial year 2014/15, recent macroeconomic forecast and adjustments to be incorporated into County Fiscal Strategy Paper (CFSP) to be submitted to County assembly before February 2016 deadline. CBROP is to provide a review of the previous fiscal performance and how this impacts the financial objectives and fiscal responsibility principles to be set out in the CFSP. This together with macroeconomic outlook provides a basis for revision of the current budget in the context of the broad fiscal parameters underpinning the next budget and the medium term. Details of the fiscal framework and the medium term policy priorities will be firmed in the CFSP. The significance of CBROP is that it ensures that the government reviews it previous year’s performance, the county and the national economic – financial environment and its likely impact on the level of future revenues; and to set preliminary sector ceilings and the light of this review of revenue. This paper is in four sections namely: I. Review of county fiscal performance II. Recent economic development and outlook III. Resource allocation frame work IV. Conclusion and next steps