COUNTY GOVERNMENT OF ELGEYO MARAKWET THE COUNTY TREASURY COUNTY BUDGET REVIEW AND OUTLOOK PAPER (CBROP) SEPTEMBER 2015 © County Budget Review and Outlook Paper (CBROP) 2014 The County Treasury P. O. Box 220-30700 ITEN, KENYA Email: emcounty2013@gmail.com Website: www.elgeyomarakwet.go.ke ii TABLE OF CONTENTS TABLE OF CONTENTS ................................................................................................................................................................................................ iii LIST OF TABLES ......................................................................................................................................................................................................... iv FOREWORD ............................................................................................................................................................................................................... v ACKNOWLEDGEMENTS ............................................................................................................................................................................................ vi ABBREVIATIONS AND ACRONYMS ........................................................................................................................................................................... vii CHAPTER ONE............................................................................................................................................................................................................ 1 1 LEGAL FRAMEWORK AND OBJECTIVES FOR CBROP ........................................................................................................................................ 1 CHAPTER TWO ........................................................................................................................................................................................................... 2 2 REVIEW OF FISCAL PERFORMANCE IN 2014/15 .............................................................................................................................................. 2 2.1 OVERVIEW ........................................................................................................................................................................................... 2 2.1.1 2014/15 Fiscal Performance ..................................................................................................................................................... 2 2.1.2 Overall balance and financing ................................................................................................................................................... 6 2.2 Implication of 2014/15 Fiscal Performance ......................................................................................................................................... 6 CHAPTER THREE ........................................................................................................................................................................................................ 8 3 RECENT ECONOMIC DEVELOPMENTS AND OUTLOOK .................................................................................................................................... 8 3.1 Macroeconomic Outlook ..................................................................................................................................................................... 8 3.1.1 Growth Prospects ..................................................................................................................................................................... 8 3.2 Implementation of 2015/2016 Budget ................................................................................................................................................ 9 3.3 Medium Term Fiscal Framework ......................................................................................................................................................... 9 3.4 Fiscal Risks to the Outlook ................................................................................................................................................................... 9 3.5 Summary of Sectoral Priorities .......................................................................................................................................................... 10 4 RESOURCE ALLOCATION FRAMEWORK ........................................................................................................................................................ 11 4.1 Adjustment to 2015/16 Budget ......................................................................................................................................................... 11 4.2 Medium-Term Expenditure Framework ............................................................................................................................................ 12 4.3 2016/17 Budget framework............................................................................................................................................................... 13 4.3.1 Overall Deficit and Financing .................................................................................................................................................. 15 CHAPTER FIVE .......................................................................................................................................................................................................... 16 5 CONCLUSION AND WAY FORWARD .............................................................................................................................................................. 16 ANNEXES ................................................................................................................................................................................................................. 17 iii LIST OF TABLES Table 1: Revenue Collections for 2014/2015 FY ........................................................................................... 3 Table 2: Expenditure (Aggregate) ................................................................................................................. 4 Table 3: Expenditure on Recurrent ............................................................................................................... 5 Table 4: Expenditure on Development ......................................................................................................... 6 Table 5: Revenue projections for 2016/17 ................................................................................................. 13 Table 6: Expenditure Forecasts for 2016/17 ............................................................................................... 15 iv FOREWORD The County Budget Review and Outlook Paper (CBROP) is one of the budget policy documents that enhance financial discipline and fiscal responsibilities within the county’s financial management framework as provided for in the Public Finance Management Act (PFM) Act 2012. The CBROP presents the fiscal outcome for the most previous Financial Year and how these outcomes affect financial objectives set out in that year’s County Fiscal Strategy Paper (CFSP). Consequently, this 2015 CBROP being the third after the enactment of devolved governance presents the fiscal framework which provides a strong basis for building a common future under the new constitutional dispensation regarding Fiscal discipline and accountability. Fiscal discipline will seek to ensure that the county’s development entities are able work towards improving the residents’ livelihoods by instituting mechanisms that enhances financial efficiency, effectiveness and economy. The county is committed to maintain the trend of economic growth and development as desired by the residents. Towards this end, the county will always strive to ensure that there is transparency and accountability by providing feedback on the county’s performance indicators as required by the Constitution and the Public Finance Management Act. Based on this backdrop, this CBROP has been prepared so as to present a review of the fiscal performance for 2014/15 Financial Year. This document is organized into five chapters. Chapter one highlights the legal justification and objectives of CBROP. In Chapter reviews the review of fiscal performance for 2014/15 fiscal year. Chapter three explains the recent economic developments and outlook. Chapter four details the resource allocation framework for 2014/15 fiscal year. Chapter five is the conclusion and recommendations SHADRACK CHELIMO CEC, FINANCE AND ECONOMIC PLANNING v ACKNOWLEDGEMENTS This second County Budget Review and Outlook Paper (CBROP) was prepared with the support and generous contribution of many individuals and entities. The county would thus like to appreciate the role played by these individuals and institutions A core team of officers comprising mainly of the staff at the Economic Planning and Budget Units undertook the process of preparing this CBROP document. These officers led by Mr. John Maritim, the Head of Economic Planning Unit and Mr. John Keen, the Head of Budget supported by Accountants based at the Budget Unit; Mr. David Michoti and Samwel Kibirong spent a significant time collecting, collating, designing and compiling this document. Mr. Titus Kosgey and Felix Kipngetich from the Planning Unit also contributed immensely to the success of the document This core team undertook the preparation task with the guidance of Mr. Shadrack Chelimo and Mr. Jeremiah Changwony who are the Finance and Economic Department’s County Executive Committee member (CEC) and Chief Officer respectively. This is therefore to extend the county’s gratitude to them and all others who were involved in the CBROP preparation process JEREMIAH CHANGWONY CHIEF OFFICER, FINANCE AND ECONOMIC PLANNING vi ABBREVIATIONS AND ACRONYMS CBROP County Budget Review and Outlook Paper CEC County Executive Member CFSP County Fiscal strategy Paper CG County Government CIDP County Integrated Development Plan COB Controller of Budget CRA Commission on Revenue Allocation FY Fiscal Year GDP Gross Domestic Product LATF Local Authority Transfer Fund MTEF Medium-Term Expenditure Framework PFMA Public Financial Management Act TA Transition Authority vii CHAPTER ONE 1 LEGAL FRAMEWORK AND OBJECTIVES FOR CBROP The County Budget Review and Outlook Paper (CBROP) is in compliance with Section 118 of the Public Finance Management (PFM) Act. The Act states that each County Treasury; • Shall prepare a County Budget Review and Outlook Paper in respect of the county for each financial year; and • Submit the paper to the County Executive Committee by the 30th September of each year The law requires CBROP to present the fiscal outcome for the previous financial year and to state how this outcome affects the financial objectives contained in that year’s County Fiscal Strategy Paper (CFSP). The main objectives of a CBROP are to specify; • The details of the actual fiscal performance in the previous year compared to the budget appropriation for that year; • The updated economic and financial forecasts in relation to the changes from the forecasts in the most recent County Fiscal Strategy Paper (CFSP); • Any changes in the forecasts compared with the CFSP; • How actual financial performance for the previous financial year may have affected compliance with the fiscal responsibility principles, or the financial objectives in the CFSP for that financial year; and • Reasons for any deviation from the financial objectives in the CFSP together with proposals to address the deviation and the time estimated for doing so. The CBROP is expected to provide a summary of the national macroeconomic outlook and how this will affect the County’s economic performance. The key macro-economic indicators are, however, not currently available at the county level thereby making it difficult to provide county macro-economic statistics for analytic purposes The above statistics would partly provide the basis for the revision of the Financial Year 2014/15 budget in the context of the Revised Budget, as well as setting out the broad fiscal parameters for the next budget and medium term. The fiscal framework presented in this document provides a strong basis for building our common future under the current constitutional dispensation. The paper also presents an overview of budget financing sources that includes revenue and grants. In the last section of the document, the paper offers some conclusions and the way forward 1 CHAPTER TWO 2 REVIEW OF FISCAL PERFORMANCE IN 2014/15 This section is meant to review how the actual financial performance for the 2014/15 financial year may have affected compliance with the fiscal responsibility principles, or the financial objectives in the CFSP for that financial year. 2.1 OVERVIEW In line with the Constitution, the Public Financial Management (PFM) Act, 2012, sets out fiscal responsibility principles to ensure prudency and transparency in the management of public resources. The PFM law (Section 15) states that: 1) Over the medium term, a minimum of 30% of the county budget shall be allocated to development expenditure 2) The county government’s expenditure on wages and benefits for public officers shall not exceed a percentage of the county government’s revenue as prescribed by the regulations 3) Over the medium term, the county government’s borrowings shall be used only for the purpose of financing development expenditure and not for recurrent expenditure 4) Public debt and obligations shall be maintained at a sustainable level as approved by county assembly 5) Fiscal risks shall be managed prudently 6) A reasonable degree of predictability with respect to the level of tax rates and tax bases shall be maintained, taking into account any tax reforms that may be made in the future The fiscal performance in 2014/15 was generally satisfactory, despite the challenges faced with regard to late disbursements of Health Sector Support Funds (HSSF) slowing down onward transmission of the same to their respective Health Facilities. 2.1.1 2014/15 Fiscal Performance Table 1 and 2 below present the fiscal performance for the FY 2014/15 for revenue and expenditure. The total cumulative revenue collection from local sources for the period between July 2014 and June 2015 was Kshs. 113,138,315 compared to a target of Kshs. 132,000,000 that had been projected to be 2 collected in the same period. This represents a deviation of 14.2% of revenue collection. The county received Kshs. 2,853,525,879 as disbursements from National Government REVENUE Table 1: Revenue Collections for 2014/2015 Revenue Type Target Actual Deviation in Kshs Deviation in % (Approved) Game Park Fees 0 0 - Animal Stock Sale Fees 2,446,006 2,136,880 309,126.0 13 Produce & Other Cess 31,563,556 29,817,118 1,746,438.0 6 Single Business Permit 13,807,204 11,120,794 2,686,410.0 19 Plot Rent/ Rates 4,516,280 2,170,345 2,345,935.0 52 Bus park/ motorbikes 3,500,000 3,732,545 (232,545.0) (7) Trade Application 1,500,000 1,500,000.0 100 Slaughter fees 1,200,000 1,413,665 (213,665.0) (18) House/stall/ground 510,000 2,307,950 (1,797,950.0) (353) Conservancy 400,000 374,220 25,780.0 6 Plan approval 167,700 394,400 (226,700.0) (135) Clearance 74,210 74,210.0 100 Hides and Skins 100,005 100,005.0 100 Promotion/advert 822,900 997,070 (174,170.0) (21) Tender Document 60,000 60,000.0 100 Hire of Grater 2,005,380 6,000 1,999,380.0 100 Industrial rates - - - Trade (weights $ measures) 500,000 74,440 425,560.0 85 Tourism 5,000,000 117,500 4,882,500.0 98 Agriculture - 5,016,540 (5,016,540.0) WATER/LANDS /HOUSING/CO-OP. 2,000,000 1,608,270 391,730.0 20 Health Services (liquor license fees) 1,000,000 7,953,110 (6,953,110.0) (695) Market Fees & Others 3,500,000 4,340,280 (840,280.0) (24) Youth affairs and sports 500,000 49,000 451,000.0 90 3 FIF funds 49,672,495 32,111,685 17,560,810.0 35 Rolled over funds (B/F) - - 785,247,426 785,247,426 Fines 300,000 286,188 13,812.0 5 VSD funds 5,000,000 5,000,000.0 100 OTHERS 1,854,264 7,110,315 (5,256,051.0) (283) TOTAL LOCAL REVENUE 917,247,426 898,385,741 18,861,685.0 2 Central Government Transfers (CRA Share) 2,845,235,405 2,853,525,879 (8,290,474.0) (0) DANIDA HSSF - - 18,420,000 18,420,000 GRAND TOTAL (REVENUE) 3,780,902,831 3,770,331,620 10,571,211.0 0 Table 1: Expenditure (Aggregate FY 2014/2015) DEPARTMENT RECURRENT DEVELOPMENT TOTAL ACTUAL DEVIATION DEVIATION (SAVINGS) IN IN % (BUDGETED) (BUDGETED) (BUDGETED) KSHS OFFICE OF THE GOVERNOR/DG 146,951,792 70,684,932 217,636,724 11.87 1 191,799,429 25,837,295 ADMINISTRATION 66,791,057 66,791,057 2 64,965,136 1,825,921 2.73 COUNTY ASSEMBLY 328,372,997 55,193,265 383,566,262 3 364,168,608 19,397,654 5.06 FINANCE & ECONOMIC PLANNING 164,757,314 19,823,213 184,580,527 4 177,942,892 6,637,635 3.60 ROADS, PUBLIC WORKS & TRANSPORT 45,377,027 439,779,964 485,156,991 5 466,830,089 18,326,902 3.78 YOUTH, SPORTS, CULTURE, GENDER 27,603,326 97,107,414 124,710,740 46.26 6 67,015,925 57,694,815 EDUCATION & T.TRAINING 169,452,827 175,373,970 344,826,797 29.30 7 243,775,842 101,050,955 HEALTH SERVICES 918,454,411 209,507,473 1,127,961,884 1,171,271,404 8 (43,309,520) (3.84) LANDS, HOUSING, PHYSICAL 17,531,094 63,200,860 80,731,954 22.54 9 PLANNING 62,533,306 18,198,648 TRADE, TOURISM, CO-OPERAT. 35,327,161 56,405,090 91,732,251 11.18 10 DEVELOP. 81,479,037 10,253,214 WATER, IRRIGATION, & 169,940,603 197,694,697 24.77 11 ENVIRONMENT 27,754,094 148,727,517 48,967,180 AGRICULTURE 175,153,867 123,781,304 298,935,171 12 271,918,948 27,016,223 9.04 COUNTY PUBLIC SERVICE BOARD 42,472,676 42,472,676 13 40,522,853 1,949,823 4.59 I.C.T. & PUBLIC SERVICE 119,501,404 14,627,075 134,128,479 14 135,380,930 (1,252,451) (0.93) TOTALS 2,285,501,047 1,495,425,163 3,780,926,210 3,488,331,916 292,594,294 8.0 4 Total expenditure for the period under review amounted to Ksh 3,488,331,916 against budgeted target of Kshs. 3,780,926,210, representing an under spending of Ksh. 292,594,294 (or 8 percent deviation from the revised budget). However, the deviation represented the committed funds as at the close of financial year and could not be spend after the IFMIS system was closed down, hence the same were rolled over to the financial year 2015/2016 to be spend on the committed expenditures. Table 2: Expenditure on Recurrent FY 2014/2015 DEPARTMENT Target Actual Deviation Deviation (Approved) (Savings) in Kshs in % OFFICE OF THE GOVERNOR/ DEPUTY GOVERNOR 146,951,792 141,706,350 5,245,442 4 ADMINISTRATION 66,791,057 64,965,136 1,825,921 3 COUNTY ASSEMBLY 328,372,997 327,481,857 891,140 0 FINANCE & ECONOMIC PLANNING 164,757,314 161,130,021 3,627,293 2 ROADS, PUBLIC WORKS & TRANSPORT 45,377,027 43,006,808 2,370,219 5 EDUCATION 169,452,827 167,788,393 1,664,434 1 YOUTH, SPORTS, CULTURE, GENDER 27,603,325 26,261,286 1,342,039 5 HEALTH SERVICES 918,454,411 1,008,234,304 (89,779,893) (10) LANDS, HOUSING, PHYSICAL PLANNING 17,531,094 17,486,074 45,020 0 TRADE, TOURISM, CO-OPERATIVE DEVELOPMENT 35,327,161 34,793,362 533,799 2 WATER, IRRIGATION, & ENVIRONMENT 27,754,094 33,859,727 (6,105,633) (22) AGRICULTURE 175,153,867 170,758,535 4,395,332 3 COUNTY PUBLIC SERVICE BOARD 42,472,677 40,522,853 1,949,824 5 I.C.T. & PUBLIC SERVICE 119,501,403 124,901,798 (5,400,395) (5) TOTALS 2,285,501,046 2,362,896,504 (77,395,458) (8) 5 Table 3: Expenditure on Development DEPARTMENT Target (Approved) Actual Deviation Deviation in (Savings) % OFFICE OF THE GOVERNOR/ DEPUTY GOVERNOR 50,093,079 20,591,853 70,684,932 29.13 ADMINISTRATION COUNTY ASSEMBLY 36,686,751 18,506,514 55,193,265 33.53 FINANCE & ECONOMIC PLANNING 16,812,871 3,010,342 19,823,213 15.19 ROADS, PUBLIC WORKS & TRANSPORT 423,823,281 15,956,683 439,779,964 3.63 EDUCATION, YOUTH, SPORTS, CULTURE, GENDER 75,987,449 99,386,521 175,373,970 56.67 YOUTH,SPORTS,CULTURE &SOCIAL SERVICES 40,754,639 56,352,775 97,107,414 58.03 HEALTH SERVICES 163,037,100 46,470,373 209,507,473 22.18 LANDS, HOUSING, PHYSICAL PLANNING 45,047,232 18,153,628 63,200,860 28.72 TRADE, TOURISM, CO-OPERATIVE DEVELOPMENT 46,685,675 9,719,415 56,405,090 17.23 WATER, IRRIGATION, & ENVIRONMENT 114,867,790 55,072,813 169,940,603 32.41 AGRICULTURE 101,160,413 22,620,891 123,781,304 18.27 COUNTY PUBLIC SERVICE BOARD I.C.T. & PUBLIC SERVICE 10,479,132 4,147,943 14,627,075 28.36 TOTALS 1,495,425,163 1,125,435,412 369,989,751 24.74 Development expenditure was Ksh 1,125,435,412 compared to a target of Kshs.1, 495,163. This represented an under-spending of 369,989,751 Ksh (or 24.74 percent deviation from the approved development expenditure). However, the same funds had been committed as explained under Table 2 above to be spend through the first supplementary budget for FY 2015/2016 2.1.2 Overall balance and financing In the 2014/15 fiscal year, the county heavily relied on central government revenue share to counties since it did not meet its projected local revenue collection as highlighted in table 1. The County’s budget was a balanced one and that there was no borrowing by the county in line with medium term provisions of PFM Act 2012. 2.2 Implication of 2014/15 Fiscal Performance Implication of 2014/15 Fiscal Performance on fiscal responsibility principles and financial objectives contained in the 2015 County Fiscal Strategy Paper (CFSP) 6 a) The performance in the FY 2014/15 has affected the financial objectives set out in the February 2014 County Fiscal Strategy Paper (CFSP) and the Budget for FY 2014/15 in the following ways: (i) the base for revenue and expenditure projections has changed implying the need for adjustment in the fiscal aggregates for the current budget; and (ii) To take into account the slow take off of budget execution of the FY 2015/16 budget by Departments, the baseline ceilings for spending entities will be adjusted and then firmed up in the next County Fiscal Strategy Paper (CFSP) in February 2015 b) Accordingly, the revenue projections will remain in line with the initial macroeconomic assumptions taking into account the revised revenue and expenditure base. Consequently, the budget ceilings provided in the CFSP 2015 will reflect the macroeconomic forecast. However, taking into account that the key macro variables remain as projected in the CFSP 2015, there will be adjustments to the ceilings c) The overall revenue underperformance in 2014/15 has implications in the base used to project the revenue for these revenue items in the FY 2015/16. Therefore, in updating the fiscal outlook the new base has been taken into account. In addition; effects, that may emanate from the recently submitted Finance Bill 2015 is expected to boost revenue through improving efficiency in revenue administration as well as ease compliance by revenue payers d) The under-spending in both recurrent and development budget for the FY 2014/15 additionally has implications on the base used to project expenditures in the FY 2015/16. Appropriate revisions have been undertaken in the context of this CBROP, taking into account the budget outturn for 2014/15 e) The county will not deviate from the fiscal responsibility principles, but will make appropriate modifications to the financial objectives contained in the CFSP 2015 to reflect the changed circumstances f) Measures to revamp productive sectors of the county through various initiatives are expected to add impetus to our county’s growth prospects. Meanwhile, collaborative and cooperative frameworks which have been instituted by the county is expected to promote private sector investments through Public Private Partnerships thus stimulating growth 7 CHAPTER THREE 3 RECENT ECONOMIC DEVELOPMENTS AND OUTLOOK 3.1 Macroeconomic Outlook The county’s performance is largely dependent on the formulation and implementation of prudent policies to guide service delivery and the country’s economic performance. Recent developments in the key macroeconomic variables are encouraging. Growth in real GDP remains resilient but downside risks remain. Overall inflation increased slightly during the 2nd half of 2013/2014 on account of upward revisions in local pump prices and food items as well as the CPI base effects. Short term interest rates declined, consistent with the easing of monetary policy stance. In particular, the uptake of bank credit by the private sector increased by 13.5 per cent in the twelve months to July 2013 compared to 16.7 per cent target. The Kenya Shilling exchange rate has stabilized against major world currencies following increased short term capital inflows and remittances 3.1.1 Growth Prospects The Country’s economy is projected to grow by 5.1 per cent in 2015. Medium term prospects are stronger, with the growth in Gross Domestic Product (GDP) projected to improve to around 6 per cent. Growth will be augmented by production in agriculture following receipt of adequate rains, value addition in agriculture, completion of key infrastructure projects (such as roads and energy), and other initiatives geared towards exports promotion Domestic demand is expected to be robust following increased investor confidence. Despite the increase in inflation in the recent past, inflation is expected to revert back to target of 5 percent with a 2.5 percent band in the medium term. Stability in interest rates and exchange rates is expected to promote access to credit for private sector and boost investments and consumption to stimulate growth. Continued improvements and stability in the macroeconomic variables will ensure the county operates in a stable economic environment. 8 3.2 Implementation of 2015/2016 Budget Implementation of 2015/2016 budget started slowly due to delayed disbursements from the national treasury coupled with challenges in the implementation of Procurement Plan through IFMIS E- PROCUREMENT Platform. This has now been addressed and County Government operations are continuing well. To date, the county has spent Kshs 249,698,322- out of the budgeted Kshs 2,519,928,833 recurrent estimates. Revenue collection was Kshs 16,978,887 in the first two months of 2015/2016 fiscal year against a target of 149,980,000, thus revenue collection was below target by Ksh 133,001,113 in the first two months of the 2014/2015 fiscal year. 3.3 Medium Term Fiscal Framework The county will continue to pursue prudent fiscal policy to ensure economic stability which support economic activities while allowing for implementation of programmes within sustainable public finances. With respect to revenue, the County Government hopes to improve revenue collections estimated to be 149,980 in the first and second half of 2015/2016 fiscal year. Measures to achieve this effort include improved tax compliance with enhanced administrative measures, recruitment of additional revenue staff and sealing of loopholes in revenue collection. The county will also widen the tax base and review all levies and charges in the proposed 2015 finance bill in order to simplify and modernize them. The county Government will develop a comprehensive policy and legislative framework covering licensing, revenue sharing, taxation and sustainable use of the natural resources and tourism endowments. This will ensure that we derive maximum benefit from county parks, mining activities, sports tourism (training and paragliding) and heritage sites including conservancies, Rimoi game reserve among others On the expenditure side, the County Government will continue with rationalization of expenditure and expediting of requisite procurement processes to improve efficiency and reduce wastage. Expenditure management will be strengthened with adoption of the Integrated Financial Management Information System (IFMIS) across the county level. County human resources rationalization will receive greater attention to an extend that the IPPD payroll for the County Assembly has been detached from the Executive thus creating an autonomy of the County Assembly. Going forward, implementation pace in the spending units will be monitored. These will inform appropriate measures to be taken in the context of the next budget process. 3.4 Fiscal Risks to the Outlook The macroeconomic management and performance of most of the sectors at the National level have a ripple effect on how some sectors in the county will perform. The risks to the outlook for 2015/16 and the medium-term include continued weak growth in advanced economies that will impact 9 negatively on our exports and tourism activities. Further, geopolitical uncertainty on the international oil market will slow down the productive sectors of the economy and may increase inflation. The county revenue projections are subject to a number of general risks that can affect collections. These include resistance that may arise from County Finance Bill, 2015, tax evasion and avoidance, weak revenue administrative structures and significant fluctuations in major revenue sources due to changes in the economic environment. These challenges may result in a significant deviation from revenue projections and consequently lead to huge unfunded budget deficits. Other fiscal risks also include potential natural disasters due to unfavorable weather conditions, crop failure due to maize lethal necrosis, terrorist threats causing decline in tourist arrivals and the uncertainties in the release of county funds. Such occurrences have in the past resulted in unexpected increases in expenses which disrupt the planned execution of the budget. Should these risks materialize; the County government in consultation with the National government will undertake appropriate measures to safeguard macroeconomic stability. 3.5 Summary of Sectoral Priorities Development initiatives that will be implemented in the coming Fiscal Years are contained in the County Integrated Development Plan (CIDP) whose development proposals were identified by stakeholders through a consultative process. All the sectors in the county had priority development proposals identified. These proposals will drive budget process for the county in the respective sectors. However, in striving to fill the resource gaps for the achievement of strategic priorities the county has put emphasis on mechanisms that encourages Public Private Partnerships (PPP) and donor cooperation and collaboration in the county’s development approaches 10 CHAPTER FOUR 4 RESOURCE ALLOCATION FRAMEWORK 4.1 Adjustment to 2015/16 Budget Given the performance in FY 2014/15, the updated economic outlook and risks to the FY 2015/16 budget, expenditure pressures pose a fiscal risk and adjustments are inherent. The aforementioned risks will be monitored closely, analysed keenly and the County Government would take appropriate measures by analyzing cause and effect hence realize value for money and ensure service delivery. The ongoing process of county restructuring, recruitment and rationalization of staff is expected to exert pressure on wage expenditures. Expenditure pressures with respect to salary demand of devolved functions continue to persist, and so are operational demands for Departments. This is compounded, for instance, by the recent, nurses and ward administrators; which has added more weight to the county’s burgeoning wage bill. The recruitments affected Departments of Health and Administration among others. Adjustments to the 2015/16 budget will take into account actual expenditure incurred so far and absorption capacity in the remainder of the financial year. This calls for rationalization of expenditures and may include slowing down and/or reprioritizing development and operational expenditures in order for the Government to live within its means. This calls for efficient Monitoring and Evaluation of projects and programmes, including close observation of expenditure trends, which will greatly inform the decisions to be made in the next Supplementary Budget. Implementation pace in the spending units continues to be a major challenge especially with regard to the delayed disbursement of funds, hence interference with implementation of programmes and projects. This is further worsened by the pending court ruling, which has delayed the approval of FY 2014/2015 budget. For disaster response purposes, contingency fund has been set aside as a pool resource under the Governor’s Office. Utilization of the funds will be within the criteria specified in PFM Act 2012. On the Revenue side, the County Treasury is expected to institute corrective measures to reverse the revenue loss from local sources and enhance revenue collection. This will boost the available resources, broaden the revenue base and aid in execution of functions and service delivery to County residents 11 4.2 Medium-Term Expenditure Framework Elgeyo Marakwet County MTEF approach consists of a bottom-up estimation of the current and medium-term costs of existing policy and, ultimately, the matching of these costs with available resources in the context of the annual budget process. The MTEF budgeting will thus entail adjusting non-priority expenditures to cater for the priority ones. The priority social sectors, education and health, will continue to receive adequate resources though they are required to utilize the allocated resources more efficiently to generate fiscal space to accommodate other strategic interventions in their sectors. Another crucial social sector is Youth Affairs, Sports, Culture, Gender and Children The county is highly talented in athletics and the sector needs massive investments so that county’s sporting potential is realized. During the period under review, Kamariny stadium for instance will be upgraded to high standards so that athletes and other sportsmen can have state of the art facility for their training purposes and subsequent excellence, both nationally and internationally. The economic sectors such as agriculture will receive increasing share of resources to boost agricultural productivity and initiating value addition ventures as the county deals with threats of food insecurity and poor market returns for agricultural produce. For expansion of agricultural activities, Irrigation sub- sector will receive a large share of resources in the medium term period. Another sector that will receive a sizable share of resources is Trade, Tourism & Co-Operative Development. This will aid the county to tap into its tourism potential, the greater emphasis being Rimoi Game Reserve in this period. With the County Government’s commitment to improving infrastructure across the county, the share of resources going to priority physical infrastructure sector, such as roads and water, will rise over the medium term. This will spur the county’s economic growth because no meaningful economic activity can be carried out without reliable physical infrastructure. Further, implementation by the spending units will be monitored closely especially with regard to the development expenditures and uptake of resources. This requires a highly efficient and effective monitoring and evaluation by the county government. All the other sectors will continue to receive adequate resources in line with our county’s commitment to a balanced sector development so as to ensure socio-economic welfare and enhanced quality of life for the residents of the county 12 4.3 2015/16 Budget framework Table 4: Revenue projections for 2016/17 Projections. Projections. Projections. Revenue Type F/Y 2014/2015 F/Y 2015/2016 F/Y 2016/17 Animal stock sale fees 1 2,446,006 2,557,895 3,248,527 Produce & Other cess 2 31,563,556 33,007,390 41,919,385 Single Business Permit 3 13,807,204 14,438,797 18,337,272 Plot rent/Rates 4 4,516,280 4,722,871 5,998,046 Bus park/motor bikes fees 5 3,500,000 3,660,103 4,648,331 Trade applications fees 6 1,500,000 1,568,616 1,992,142 Slaughter fees 7 1,200,000 1,254,892 1,593,713 House rent/Stall/Ground. 8 510,000 533,329 677,328 Conservancy fees 9 400,000 418,297 531,237 Plan approval fees 10 167,700 175,371 222,721 Clearance fees 11 74,210 77,605 98,558 Hide & skins 12 100,005 104,580 132,817 Promotion/advert 13 822,900 860,542 1,092,888 Tender Document 14 60,000 62,745 79,686 Hire of Grater & other machinery 15 2,005,380 2,097,114 2,663,335 Trade - 16 92,182 117,071 Fines 17 300,000 313,723 398,428 FIF funds 18 49,672,495 51,944,699 65,969,768 VSD funds 19 5,000,000 5,228,719 6,640,473 Liquor license application 20 1,000,000 1,045,744 1,328,095 Water Department 21 2,000,000 2,091,487 2,656,188 Health services - 22 12,006,510 15,672,096 13 23 Youth affairs and sports 500,000 52,287 66,404 Agriculture - 24 2,500,000 3,500,000 Lands - 25 100,000 150,000 Housing - 500,000 600,000 Weights and measures 500,000 522,872 664,047 Tourism 5,000,000 2,442,442 2,490,473 Market fees & others 3,500,000 3,660,103 4,048,331 OTHERS 1,854,264 1,939,085 2,462,638 TOTAL LOCAL REVENUE 132,000,000 149,980,000 190,500,000 Central Government Transfers (CRA Share) 2,845,235,405 3,191,548,394 3,702,196,137 Conditional Grants DANIDA HSSF - 18,420,000 20,800,000 WORLD BANK - - HSSF 20,179,116 Free maternal health 43,409,840 Leasing of medical 95,744,681 equipment Support to abolishment of 8,624,640 user fees in health centers and dispensaries Road Maintenance 41,545,473 Fuel Levy Fund Establishment of County 93,617,021 Emergency Fund TOTAL 2,995,655,205 3,665,449,165 3,702,196,137 14 Table 5: Expenditure Forecasts for 2016/17 Department Recurrent Estimates Compensation Total O & Total Development Total to Employees M Recurrent Estimates. 1 Office of The Governor 51,093,869 13,426,311 69,969,676 13,000,000 82,969,676 2 Administration 17,646,591 2,972,021 21,602,472 0 21,602,472 3 County Assembly 247,997,077 118,753,777 399,000,000 30,000,000 429,000,000 Finance & Economic 134,241,949 108,373,680 244,338,209 30,000,000 274,338,209 4 Planning 5 Roads, PW & Transport 42,817,945 12,569,049 58,614,510 266,344,172 324,958,682 Sports, Culture & S. 17,901,633 5,479,038 24,813,164 70,952,151 95,765,315 6 Services Education and Tech. 120,679,256 38,432,789 160,653,125 151,708,478 312,361,603 7 Training 8 Health Services 944,052,998 189,855,433 1,134,775,947 156,253,138 1,291,029,085 Water, Lands, Housing, P 50,756,025 14,196,182 66,524,700 205,460,593 271,985,293 9 & P Trade, Tourism, Co-op 31,793,960 8,232,649 41,374,146 50,414,064 91,788,210 10 Dev. 11 Agriculture 173,468,528 9,584,945 184,867,816 122,887,736 307,755,552 County Public Service 75,745,513 4,568,005 26,,315,516 2,500,000 28,815,516 12 Board 13 ICT & Public Service 19,430,611 9,406,523 87,079,552 46,000,000 133,079,552 TOTAL 1,927,625,955 535,850,402 2,493,613,317 1,145,520,332 3,665,449,165 4.3.1 Overall Deficit and Financing The overall budget in 2016/17 is projected to be Ksh 3,942,060,154. Cumulatively, revenue projections are estimated to be ksh 3,461,837,121 out of which Ksh 120,448,055 is local revenue while Ksh 3,341,389,066 is Central Government Transfers. The deficit realized will be financed through County’s Local Revenues by raising the revenue base. 15 CHAPTER FIVE 5 CONCLUSION AND WAY FORWARD The fiscal outcome for 2014/15 FY had implication on the financial objectives contained in the last County Fiscal Strategy Paper (CFSP) submitted the County Assembly in February 2015. Going forward, the set of policies outlined in this CBROP reflect the dynamic circumstances and are broadly in line with the fiscal responsibility principles outlined in the PFM Act, 2012. They are also consistent with the county strategic objectives being pursued as a basis of allocation of public resources. These strategic objectives are provided in the policy documents that have been developed by the county whose objectives are to successfully implement the County Integrated Development Plan (CIDP) which is aligned to the national development blue print, the Vision 2030. Additionally, the policies and sector ceilings annexed herewith will guide county departments and budgeting entities in preparation of the 2016/17 budget 16 ANNEXES Annex 1: County Government Operations 2013/14 - 2016/17 Annex 1: County Government Operations 2013/14 - 2016/17 DEPARTMENT RECURREN DEVELOPMENT TOTALS RECURREN DEVELOPMENT TOTALS RECURREN DEVELOPMENT TOTALS RECURREN DEVELOPMENT TOTALS 2013/14 2013/14 2013/14 2014/15 14/15 2015/16 2015/16 15/16 2016/17 2016/17 16/17 2014/15 OFFICE OF THE GOVERNOR 111,535,586 146,951,792 70,684,932 13,000,000 17,492,800 117,235,496 228,771,082 217,636,724 69,969,676 82,969,676 94,151,196 111,643,996 OFFICE OF THE DEPUTY GOVERNOR - 30,876,612 30,876,612 - - - - - - - - ADMINISTRATION - 66,791,057 111,726,871 111,726,871 - 66,791,057 21,602,472 - 21,602,472 29,068,286 - 29,068,286 COUNTY ASSEMBLY 20,000,000 328,372,997 55,193,265 30,000,000 308,736,215 328,736,215 383,566,262 399,000,000 429,000,000 - - - FINANCE & ECONOMIC PLANNING 38,000,000 164,757,314 19,823,213 30,000,000 40,368,000 114,030,304 152,030,304 184,580,527 244,338,209 274,338,209 328,781,494 369,149,494 ROADS, PUBLIC WORKS & TRANSPORT 232,200,000 45,377,027 439,779,964 266,344,172 380,325,998 36,909,918 269,109,918 485,156,991 58,614,510 324,958,682 78,871,684 459,197,682 YOUTH, SPORTS, CULTURE, GENDER - 27,603,325 97,107,415 70,952,151 95,473,214 - - 124,710,740 24,813,164 95,765,315 36,764,917 132,238,131 EDUCATION 77,000,000 169,452,827 175,373,970 151,708,478 204,138,928 121,182,027 198,182,027 344,826,797 160,653,125 312,361,603 216,174,845 420,313,773 HEALTH SERVICES 133,000,000 918,454,411 209,507,473 156,253,138 210,254,222 649,720,008 782,720,008 1,127,961,884 1,134,775,947 1,291,029,085 1,526,954,515 1,737,208,737 WATER, LANDS, HOUSING, PHYSICAL PLANNING 9,000,000 17,531,094 63,200,860 205,460,593 276,467,774 33,582,200 42,582,200 80,731,954 66,524,700 271,985,293 89,515,636 365,983,410 WATER, IRRIGATION, & ENVIRONMENT 80,000,000 35,327,161 169,940,603 0 36,132,061 116,132,061 205,267,764 - - - - - 17 TRADE, TOURISM, CO-OPERATIVE DEVELOPMENT 34,500,000 27,754,094 56,405,090 50,414,064 67,837,165 30,857,612 65,357,612 84,159,184 41,374,146 91,788,210 55,673,051 123,510,216 AGRICULTURE 50,000,000 175,153,867 123,781,304 122,887,736 164,684,932 151,890,518 201,890,518 298,935,171 184,867,816 307,755,552 248,758,133 413,443,065 COUNTY PUBLIC SERVICE BOARD - 42,472,677 2,500,000 3,364,000 56,561,000 56,561,000 - 42,472,677 26,315,516 28,815,516 35,410,158 38,774,158 I.C.T. & PUBLIC SERVICE - 119,501,403 14,627,075 46,000,000 95,257,217 18,994,127 18,994,127 134,128,478 87,079,552 133,079,552 105,414,628 200,671,845 TOTALS 785,235,586 2,285,501,046 1,495,425,164 3,780,926,210 2,519,928,833 1,145,520,332 3,665,449,165 2,845,538,543 1,555,664,250 1,818,434,969 2,603,670,555 4,401,202,793 Annex 2: Total Sector Ceilings for the MTEF Period 2014/15 - 2017/18 DEPARTMENT 2014/15 2015/16 2016/17 2017/18 1 OFFICE OF THE GOVERNOR/DEPUTY GOVERNOR 217,636,724 82,969,676 96,244,824 111,643,996 66,791,057 21,602,472 25,058,868 29,068,286 2 ADMINISTRATION 383,566,262 429,000,000 452,498,528 3 COUNTY ASSEMBLY FINANCE & ECONOMIC PLANNING 184,580,527 274,338,209 318,232,322 369,149,494 4 485,156,991 324,958,682 395,860,071 459,197,682 5 ROADS, PUBLIC WORKS & TRANSPORT 124,710,740 95,765,315 113,998,389 132,238,131 6 YOUTH, SPORTS, CULTURE, GENDER EDUCATION 344,826,797 312,361,603 362,339,459 420,313,773 7 HEALTH SERVICES 1,127,961,884 1,291,029,085 1,497,593,739 1,737,208,737 8 TRADE, TOURISM, CO-OPERATIVE DEVELOPMENT 84,159,184 91,788,210 106,474,323 123,510,216 9 18 285,999,718 271,985,293 315,502,940 365,983,410 10 WATER, IRRIGATION, & ENVIRONMENT 298,935,171 307,755,552 356,416,435 413,443,065 11 AGRICULTURE 42,472,677 28,815,516 33,425,999 38,774,158 12 COUNTY PUBLIC SERVICE BOARD 134,128,478 133,079,552 164,372,280 200,671,845 13 I.C.T. & PUBLIC SERVICE TOTALS 3,780,926,210 3,665,449,165 4,238,018,177 4,401,202,793 19 Annex 3: Recurrent Sector Ceilings for the MTEF Period 2014/15 - 2016/17 Department 2014/2015 2015/2016 2016/2017 2017/2018 Office of The Governor 146,951,792 69,969,676 81,164,824 94,151,196 Administration 66,791,057 21,602,472 25,058,868 29,068,286 County Assembly 328,372,997 399,000,000 - - Finance & Economic Planning 164,757,314 244,338,209 283,432,322 328,781,494 Roads, Public Works & Transport 45,377,027 58,614,510 67,992,831 78,871,684 Sports, Culture & Social Services 27,603,325 24,813,164 31,693,894 36,764,917 Education and Technical Training 169,452,827 160,653,125 186,357,625 216,174,845 Health Services 918,454,411 1,134,775,947 1,316,340,099 1,526,954,515 Water, Lands, Housing, and Physical Planning 45,285,188 66,524,700 77,168,652 89,515,636 Trade, Tourism, Co-op Development 35,327,161 41,374,146 47,994,009 55,673,051 Agriculture 175,153,867 184,867,816 214,446,666 248,758,133 ICT & Public Service 119,501,403 87,079,552 101,012,280 105,414,628 County Public Service Board 42,472,677 26,315,516 30,525,999 35,410,158 TOTAL 2,285,501,046 2,519,928,833 2,463,188,069 2,845,538,543 20 Annex 4: Development Sector Ceilings for the MTEF Period 2014/15 - 2017/18 DEPARTMENT ESTIMATES ESTIMATES PROJECTIONS PROJECTIONS 2014/15 2015/16 2016/17 2017/18 Office of the Governor 70,684,933 13,000,000 15,080,000 17,492,800 Administration - - - - County Assembly 55,193,265 30,000,000 - - Finance and Economic Planning 19,823,213 30,000,000 34,800,000 40,368,000 Public ,Works Roads and Transport 439,779,964 266,344,172 327,867,240 380,325,998 Youth Affairs, Sports ,Culture and Social services 97,107,414 70,952,151 82,304,495 95,473,214 Education and Technical Training. 175,373,970 151,708,478 175,981,834 204,138,928 Health Services 209,507,473 156,253,138 181,253,640 210,254,222 Water, Lands, Housing and Physical Planning 233,141,463 205,460,593 238,334,288 276,467,774 Trade Tourism Wildlife, Industrialization and Co- operative Development 56,405,090 50,414,064 58,480,314 67,837,165 Agriculture, Livestock and Fisheries Development 123,781,304 122,887,736 141,969,769 164,684,932 County Public Service Board - 2,500,000 2,900,000 3,364,000 ICT and Public Service 14,627,075 46,000,000 63,360,000 95,257,217 Total 1,495,425,164 1,145,520,332 1,322,331,580 1,555,664,250 21 Annex 4: Summary of Strategic Interventions for the MTEF Period 2014/15 - 2017/18 DEPARTMENT AMOUNT APPROVED 2014-15 APPROVED BUDGET APPROVED BUDGET PROPOSED BUDGET ESTIMATES 2015/16 ESTIMATES 2016/17 ESTIMATES 2017/18 Office of the Governor TOTALS 217,636,724 82,969,676 96,244,824 111,643,996 Recurrent 146,951,792 69,969,676 81,164,824 94,151,196 Development 70,684,932 13,000,000 15,080,000 17,492,800 TOTAL 66,791,057 21,602,472 25,058,868 29,068,286 Recurrent 66,791,057 21,602,472 25,058,868 29,068,286 Administration Development - - - - County Assembly TOTAL 383,566,262 429,000,000 - - Recurrent 328,372,997 399,000,000 - - Development 55,193,265 30,000,000 - - Finance and Economic TOTAL 184,580,527 274,338,209 318,232,322 369,149,494 Planning Recurrent 164,757,314 244,338,209 283,432,322 328,781,494 Development 19,823,213 30,000,000 34,800,000 40,368,000 Roads, Public Works & TOTAL 485,156,991 324,958,682 395,860,071 459,197,682 Transport Recurrent 45,377,027 58,614,510 67,992,831 78,871,684 Development 439,779,964 266,344,172 327,867,240 380,325,998 Sports, Culture & Social TOTAL 124,710,740 95,765,315 113,998,389 132,238,131 Services Recurrent 27,603,325 24,813,164 31,693,894 36,764,917 Development 97,107,415 70,952,151 82,304,495 95,473,214 Education and Technical TOTAL 344,826,797 312,361,603 362,339,459 420,313,773 Training Recurrent 169,452,827 160,653,125 186,357,625 216,174,845 Development 175,373,970 151,708,478 175,981,834 204,138,928 Health Services TOTAL 1,127,961,884 1,291,029,085 1,497,593,739 1,737,208,737 Recurrent 918,454,411 1,134,775,947 1,316,340,099 1,526,954,515 Development 209,507,473 156,253,138 181,253,640 210,254,222 TOTAL Water, Lands, Housing and 285,999,718 271,985,293 315,502,940 365,983,410 Physical Planning Recurrent 52,858,255 66,524,700 77,168,652 89,515,636 22 Development 233,141,463 205,460,593 238,334,288 276,467,774 TOTAL 84,159,184 91,788,210 106,474,323 123,510,216 Trade Tourism Wildlife, Industrialization and Co- Recurrent 27,754,094 41,374,146 47,994,009 55,673,051 operative Development Development 56,405,090 50,414,064 58,480,314 67,837,165 Agriculture TOTAL 298,935,171 307,755,552 356,416,435 413,443,065 Recurrent 175,153,867 184,867,816 214,446,666 248,758,133 Development 123,781,304 122,887,736 141,969,769 164,684,932 ICT & Public Service TOTAL 134,128,478 133,079,552 164,372,280 200,671,845 Recurrent 119,501,403 87,079,552 101,012,280 105,414,628 Development 14,627,075 46,000,000 63,360,000 95,257,217 County Public Service Board TOTAL 42,472,677 28,815,516 33,425,999 38,774,158 Recurrent 42,472,677 26,315,516 30,525,999 35,410,158 Development - 2,500,000 2,900,000 3,364,000 TOTAL 3,780,926,210 3,665,449,165 3,785,519,649 4,401,202,793 Recurrent 2,285,501,046 2,519,928,833 2,463,188,069 2,845,538,543 GRAND TOTAL Development 1,495,425,164 1,145,520,332 1,322,331,580 1,555,664,250 23 Annex 5: BUDGET CALENDAR FOR THE FY 2015/16 MTEF BUDGET In accordance with Article 221 of the Constitution and the relevant sections of the Public Finance Management Act (PFM), 2012, there are budget timelines and accompanying outputs that must be complied with. The budget calendar is enumerated in the table below; No. TIMELINE BUDGET ACTIVITY 1. 30th August County Executive Committee member for Finance issues budget circular to all county entities. S.128 of PFM Act, 2012 The circular contains limits (ceilings) of each department/entity as recommended, key policy areas and issues to be taken into consideration when preparing the budgets 2. 1st September County Executive Member for Planning will submit Annual Development Plan (ADP) to County Assembly for approval, with copy to the CRA and National Treasury as per s.126(3) of PFM Act, 2012 The ADP contains long term and medium term plans as per s.125(1)(a) of PFM Act, 2012 3. 30th September County Budget Review and Outlook Paper (CBROP) will be prepared by county treasury and submitted to the county executive committee. CBROP will cover: (a) Details of actual fiscal performance in the previous year compared to the budget appropriation (b) Updated fiscal and economic forecasts (c) Changes in forecasts from the county fiscal strategy paper (d) How actual fiscal performance affected compliance with fiscal responsibility principles 24 and Budget Policy Statement. s.118(1)-(2) of PFM Act, 2012 County Executive committee will consider and approve CBROP with or without amendments s.118(3) of PFM Act, 2012 County Treasury causes CBROP to be laid before county assembly. s.118(4)(a) of PFM Act, 2012 4. By 15th October CBROP will be published and publicized s.118(4)(b) of PFM Act, 2012 5. 28th February County Treasury will prepare and submit County Fiscal Strategy Paper (CFSP) to the County Assembly. The CFSP must be aligned to national objectives in the Budget Policy Statement s. 117(1)&(2) of PFM Act, 2012 In preparing the CFSP, the County Treasury will seek the views of the CRA, the public, interested persons or groups and any forum that is established by legislation. s.117(4) of PFM Act, 2012 County Treasury will submit the CFSP to the county executive committee for approval before submission to the County Assembly s. 117(1) of PFM Act, 2012 25 6. 14th March County Treasury will submit County Debt Management Strategy to County Assembly. s.123(1) of PFM Act, 2012 County Executive Member for Finance will submit copy of County Debt Management Strategy to CRA and Intergovernmental Budget and Economic Council. s.123(3) of PFM Act, 2012 7. 14th March Within 14 days of the County Fiscal Strategy being submitted to the county assembly, the county assembly shall consider and adopt it with or without amendments. s.117(6) of PFM Act, 2012 8. 21st March County Fiscal Strategy Paper to be published and publicised. s.117(8) of PFM Act, 2012 9. 30th April County CEC Finance will submit budget estimates to county assembly. This Must be in line with resolutions of the Assembly on the County Fiscal Strategy Paper. s. 129(2) of PFM Act, 2012 10. 30th April County Assembly clerk will submit Budget Estimates for County Assembly with a copy to the CEC Finance s.129(3) of PFM Act, 2012 11. 15th May CEC Finance will publish and publicise Budget Estimates. s.129(6) of PFM Act, 2012 12. 15th May CEC Finance will present comments on the budget estimates to the county assembly s.129(4) of PFM Act, 2012 26 13. Before County Assembly considers the Before County Assembly considers the estimates the relevant committee of the County estimates Assembly shall meet and consider the estimates and make recommendations to the County Assembly, but should take into account the views of the CEC Finance. s.131(2) of PFM Act, 2012 14. 30th June County assembly will consider estimates with a view to approving with or without amendments in time for the county appropriation law to be passed by 30th June. s.131 s.131(2) of PFM Act, 2012 15. 30th June County Assembly may amend estimates only if a) any proposed increase is balanced with reduction in another appropriation and b) any proposed reduction is used to reduce the deficit. s.131(3) of PFM Act, 2012 16. 30th June After county assembly has approved estimates, CEC for finance shall prepare and submit a County Appropriation Bill to the county assembly. s.129(7) of PFM Act, 2012 17. 15th June County government must submit annual cash flow projection to the Controller of Budget. s.127(1) of PFM Act, 2012 18. 30th June Appropriation Bill will be passed by the County Assembly s.131(1) of PFM Act, 2012 19. As soon as the Budget Estimates have CEC Finance will make a pronouncement on revenue raising measures. been approved s.132(1) of PFM Act, 2012 At the same time as making the pronouncement under s.132(1) the CEC Finance must 27 submit the Finance Bill to the county assembly. s.132(2) s.131(1) of PFM Act, 2012 20. As soon as the Budget Estimates have County Assembly may consider the revenue measures but must (a) ensure the total amount been approved of revenue is consistent with the fiscal framework and the County Allocation of Revenue Act, and (b) must take into account various matters including the recommendation of the CEC Finance. s.132(3) & (4) of PFM Act, 2012 21. Not later than 90 days after County Assembly must consider the Finance Bill and approve with or without amendments. Appropriation Act passed s.133 of PFM Act, 2012 28