Bungoma County Budget Review and Outlook Paper 2017

Abstract

The outcome of the FY 2016/17 budget adhered to the Fiscal Responsibility Principles and financial objectives set out in the PFM Act, 2012. These include: County Government development budget was at 36 percent of total budget; share of County Government wages and benefits to County Government revenues was 34 percent; Public debt and obligations were maintained at a sustainable level as approved by County Assembly; improved macroeconomic forecasts to manage fiscal risks and reforms in the tax administration and legislations were carried out to lock in predictability and enhance compliance with the tax system. The budget for the FY 2017/18 and the medium term is premised on the favourable macroeconomic environment and transformational leadership at the county level, despite the risks emanating from the uncertainty in the global financial market. The macroeconomic environment remains favourable, with the narrowing of the current account deficit due to lower import bill, strong diaspora remittances, stable Kenya shilling exchange rate against the dollar, the increase in the foreign exchange reserves and the stability of the foreign exchange market. The Budget will also implement the third medium term plan of vision 2030 that is currently under preparation.