Elgeyo Marakwet County Approved Budget Estimates 2020/2021

Abstract

The preparation of County Budget requires adherence to policy documents and predetermined legislation. Section 12 of the second schedule of the PFM Act 2012 gives direction on how counties’ annual budgets are to be prepared and submitted to the County Assemblies for deliberations and approval. The planning and budget policy documents include; Annual Development Plan (ADP), County Budget Review and Outlook Paper (CBROP), County Fiscal Strategy Paper (CFSP) and County Integrated Development Plan (CIDP). Current CIDP, which is on its final stages of preparation, was prepared with priorities obtained from citizens through public participation. These priorities informed the budget priorities in financial year 2020/2021. Another important document is ADP. The objectives of this budget are informed by the 2020/21 FY Annual Development Plan (ADP) which was also subjected to public participation, just like CIDP. Departmental needs analysis was done to determine allocations to the various programmes and sub programmes in line with the CFSP ceilings. CFSP sets the limits upon which funds are allocated to the sector and sub-sector priorities. In development allocation per ward, this budget has ensured equitable sharing across all Wards on the basis of the County Equitable Development Act, 2015. The budgetary estimates for 2020/21 FY are Kshs. 5,905,553,797 out of which Kshs. 3,861,300,000 is from the Commission on Revenue Allocation (CRA) equitable share, Kshs 144,000,000 will be from own source revenue, Kshs. 1,150,053,927from roll over funds and Kshs 750,199,870 will be from conditional funds from the national government (Covid 19 Emergency Response), World Bank and other development partner sources. Development estimates in this budget amounts to 33% of the total allocation. It is above the 30% threshold and therefore complies with the PFM Act 2012. These budget estimates have been developed to achieve a balanced budget while recognizing the low levels of CRA share and local revenues. Our county however will maintain a strong revenue effort over the medium term to enhance revenue collection and in the process of achieving the county’s revenue potential. The county’s revenue base will continue to be broadened in efforts to achieve the set development targets.