Machakos County Budget Review and Outlook Paper 2023

Abstract

The Machakos County Budget Review and Outlook Paper (CBROP) for 2023 has been prepared in compliance with Section 118 of the Public Financial Management Act, 2012. It assesses the budget performance for the fiscal year 2022/2023 and outlines the development outlook for the fiscal year 2024/2025. It also presents recent economic and financial projections to inform budget proposals for the upcoming year. The 2023 CBROP is prepared against the backdrop of a global economic recovery, although uncertainties remain due to the Russia-Ukraine war in 2022, which disrupted this recovery and led to an economic slowdown in Kenya and other nations. Kenya experienced a GDP growth rate of 4.8%, a decrease from the strong rebound of 7.6% in 2021 following the COVID-19 crisis. Budget execution increased from 79% in FY 2021/2022 to 82% in the reporting period, attributed to a higher absorption of development budget, rising from 41% in FY 2021/2022 to 49% in FY 2022/2023. The County’s own source revenue collections increased by 28% from Kshs. 1.1billion in FY 2021/2022 to Kshs. 1.4billion in FY 2022/2023. Overall, the County’s receipts increased by 11.9% to Kshs. 11.97 billion from Kshs. 10.7billion in FY 2021/2022. The FY 2022/2023 marks the final budget implementation phase for the second generation County Integrated Development Plan (CIDP) 2018-2022. Sectors have reviewed and prioritized programs not implemented during this period for funding in the third generation CIDP 2023-2027, Annual Development Plan 2023-2024, County Fiscal Strategy Paper 2023, and Budget Estimates for FY 2023/2024.