COUNTY GOVERNMENT OF WAJIR 2020/21 WAJIR COUNTY PROGRAMME BASED BUDGET ESTIMATES 2020/21 JUNE 2020 Wajir County Programme Based Budget FY 2020/21 COUNTY BUDGET - CAPITAL & CURRENT Table 1: Summary of Budget by Vote and Category 2020/21 (KShs) NO. DEPARTMENT COMPENSATION USE OF TOTAL TOTAL TO EMPLOYEES GOODS & RECURRENT DEVELOPMENT ALLOCATION SERVICES 1 County Assembly 830,194,403 40,000,000 870,194,403 2 County Executive 241,215,059 169,410,000 410,625,059 410,625,059 3 Finance and 227,349,158 392,971,483 620,320,641 620,320,641 Economic Planning 4 Agriculture and 164,309,058 30,433,931 194,742,989 571,368,127 766,111,116 Livestock Development 5 Public Health, 1,647,961,988 418,116,987 2,066,078,975 831,091,191 2,897,170,166 Medical Services and Sanitation 6 Roads & Transport 72,574,260 68,584,000 141,158,260 901,155,024 1,042,313,284 Department 7 Water Department 100,416,637 233,310,820 333,727,457 655,141,508 988,868,965 8 Energy, 51,113,704 11,479,200 62,592,904 257,038,124 319,631,028 Environment and Natural Resources 9 Public Service, 302,837,914 422,935,674 725,773,588 39,796,592 765,570,180 Special Programs and Decentralized Unit & Town Administration 10 Education, Youth, 385,838,178 130,706,761 516,544,939 225,495,312 742,040,251 Gender and Social Services 11 ICT, Trade, 156,265,080 25,440,500 181,705,580 40,681,809 222,387,389 Industrialization, Co-operative Development 12 Public works, Lands, 56,259,558 39,656,400 95,915,958 75,100,000 171,015,958 Housing and Physical Planning 13 WAJWASCO 98,522,868 39,300,000 137,822,868 437,000,000 574,822,868 14 CPSB 54,669,616 30,300,000 84,969,616 84,969,616 15 Municipality 167,619,386 40,730,877 208,350,263 224,643,500.0 432,993,763 TOTAL 3,726,952,464 2,053,376,633 6,610,523,500 4,298,511,187 10,909,034,687 Proportion % 34.2% 18.8% 60.6% 39.4% Compliance with the Legal Framework This Budget is prepared in accordance with section 129 of the Public Finance management Act 2012 and other relevant laws. Wajir County Programme Based Budget FY 2020/21 Section 129 2(b) and 130 1 (iii) of the Public Finance management Act 2012 requires the County Executive Committee Member to ensure that the estimates submitted in are in accordance with the resolutions adopted by County Assembly on the County Fiscal Strategy Paper. Unfortunately, the county treasury has not received the resolution of the county assembly on the county Fiscal Strategy Paper 2020 by the time of coming up with the estimates and therefore this section could not be complied with. Further, budget is prepared in accordance with the Government of Kenya budget classification and standard chart of accounts issued by the National Treasury as required by section 40 of the Public Finance management (County Government Regulation, 2015). Budget Policies The total expenditure for the financial year is projected to total to 10,909,034,687 of which 60.6% ( 6,610,523,500) will be for recurrent and 39.4% (4,298,511,187 ) will be for development . The allocation for each department is captured in the detailed votes. No Item B udget estimates FY 2020/21 1 Total Recurrent 6,610,523,500 2 Total Development 4,298,511,187 Total Budget 10,909,034,687 The county projects to receive total revenue of 10,909,034,687 as shown in the table below REVENUE SOURCE FY 2020/21 Equitable Share 8,545,500,000 Local Revenue 150,000,000 Wajir County Programme Based Budget FY 2020/21 THS- World Bank 98,763,532 DANIDA 24,300,000 User Fees Forgone 15,784,997 Fuel Levy 254,698,172 KDSP Grant level 1 45,000,000 Kenya Climate Smart Agriculture Project 320,674,320 Development of Youth Polytechnics 14,074,894 Conditional Grant EU Grant on Instrument for Devolution 15,626,168 Advice and Support Programme (IDEAS) Agricultural Sector Development Support 17,532,329 Programme 11 Water and Sanitation Development Project- 350,000,000 World Bank FUEL Levy for 2019/20 242,569,688 COVID-19 Fund from National Treasury 38,268,000 2019/20 ASDSP 2019/20 21,048,494 DANIDA balance from 2019/20 9,450,000 KDSP Grant level 1 & 2 balance from 125,000,000 2019/20 KUSP UIG and UDG 175,643,500 Balance brought forward from 2019/20 445,100,593 TOTAL 10,909,034,687 Wajir County Programme Based Budget FY 2020/21 The total expenditure equals the total revenue project and therefore the county does not expect to borrow in the medium term. Fiscal Responsibility Principles and Financial Objectives The budget proposal has complied with the requirement of Section 107 of the PFM Act on Fiscal Responsibility Principles as follows. • the county government’s recurrent expenditure shall not exceed the county government’s total revenue; The Recurrent expenditure accounts for 60.6% of the County Government total projected revenue. • Over the medium term, a minimum of thirty (30) per cent of the budget shall be allocated to the Development Expenditure. In the current year, 39.4% of the budget will be allocated to Development Expenditure. • The Government’s expenditure on wages shall not exceed a percentage of 35% of the County total revenue. Expenditure on wage is projected to be 34.2% of the total budget.the county is on the upper limit of this requirement and will institute measures to ensure the ratio does not go above the current point. • Over the medium term, the Government’s borrowing shall be used only for purpose of financing development expenditure and not for recurrent expenditure. Wajir County Programme Based Budget FY 2020/21 Since there is no legal framework developed for county borrowing, we do not intend to borrow.we will engage the national treasury to provide guidance on the acquisition of long term assets to generate income. The same will be discussed with the county assembly in order to improve local revenue collections. • The county debt shall be maintained at a sustainable level as approved by County Assembly. The County has not borrowed since there are no laws approved by the county assembly to enable the county to borrow. This is caused by lack of legal framework for county borrowing. • The fiscal risks shall be managed prudently and all mitigation measures indicated will be put in place to manage all identified and emerging risks. Fiscal risks identified in the County Fiscal Strategy paper 2020 have all mitigation measures identified and implemented for each one of them. • The County Government shall maintain a reasonable degree of predictability with respect to the level of tax/ levy rates and bases shall be maintained, taking into account any tax reforms that may be made in the future. The County Government of Wajir will ensure there are no significant change in the rates but will rather strive to improve the tax base by broadening the tax bracket. The budget does not deviate from the broad county Fiscal objectives in the County Fiscal Strategy paper 2020 and remain as follows; Wajir County Programme Based Budget FY 2020/21 • Enhance food security by investing in appropriate systems; we will invest development of irrigation infrastructure to increase food production. We are also financing Climate Smart Agriculture to improve resilience to climate change. Animal disease control through establishment of veterinary laboratory is a top priority for the county government. • Improve access to universal health care to guarantee quality and affordable health for all; we are investing in provision of health care services and develop health infrastructure required for universal health coverage. Will have allocated the highest budget to the department of health. • Enhance cohesion and integration through equity and inclusivity for all; the resource sharing is based on the wards and we have ensured the major projects are scattered across the sub-counties while all programmes will run in all the wards. • Improve Road, Transport, Energy and Communication Infrastructure to Spur Investment and ease of doing business; we have allocated significant resource to develop the much needed infrastructure to spur growth. • Improve early childhood education, and youth, women and marginalized groups empowerment; we have provision for bursary, cash transfer for the disabled to ensure the vulnerable groups are protected. • Improve access to adequate portable water, and ensure clean and safe environment; and • Promoting clean energy by tapping into solar and wind energy. Implementation of the recommendations made by the county assembly with respect to the budget for the previous financial year. 1. Deviation from the County Fiscal Strategy paper 2020 A: RECURRENT CFSP 2020 Budget estimates Proportion of NO. DEPARTMENT Variance Ceiling 2020-21 variance (%) 1 County Assembly 765,523,601 830,194,403 64,670,802 8.45% 2 County Executive 484,914,265 410,625,059 -74,289,206 -15.32% 3 Finance and Economic Planning 603,045,236 620,320,641 17,275,405 2.86% 4 Agriculture and Livestock 220,368,140 194,742,989 -25,625,151 -11.63% Wajir County Programme Based Budget FY 2020/21 Development Public Health, Medical Services 5 1,704,208,397 2,066,078,975 361,870,578 21.23% and Sanitation 6 Roads & Transport Department 140,198,114 141,158,260 960,146 0.68% 7 Water Department 187,957,721 333,727,457 145,769,736 77.55% Energy, Environment and Natural 8 68,941,044 62,592,904 -6,348,140 -9.21% Resources Public Service, Special Programs 9 and Decentralized Unit & Town 679,258,074 725,773,588 46,515,514 6.85% Administration Education, Youth, Gender and 10 578,501,111 516,544,939 -61,956,172 -10.71% Social Services ICT, Trade, Industrialization, Co- 11 216,469,021 181,705,580 -34,763,441 -16.06% operative Development Public works, Lands, Housing and 12 79,350,831 95,915,958 16,565,127 20.88% Physical Planning 13 WAJWASCO 143,841,873 137,822,868 -6,019,005 -4.18% 14 CPSB 86,179,866 84,969,616 -1,210,250 -1.40% 15 Municipality 206,787,881 208,350,263 1,562,382 0.76% TOTAL 6,165,545,175 6,610,523,500 444,978,325 7.22% The Variance in the total recurrent is 7.22% from the CFSP 2020 ceilings. The department that received lower than their ceiling is because the savings from this departments were used to finance universal health Coverage programme that required health allocation to be at least 30% of total county budget while the reason for increase in allocations to departments is explained below; County Assembly The Increase of about 65 million is as a result of pending bill arising from the unreceived June disbursement. The amount was added to the current allocation to cater for the planned expenses for the month of june including salaries. Finance and Economic Planning The Department has carried forward an allocation for Kenya devolution Suport programme for the previous year amounting to kshs. 30,000,000. The department has actualy received lower the ceiling for the current year in order to finance health budget. Wajir County Programme Based Budget FY 2020/21 Public Health, Medical Services and Sanitation The Department has received 361 Million above the ceiling. These include 9.45 Million of Danida funds carried Forward, 38.268 million carried forward for COVID interventions and increase in allocation to finance universal Health Coverage Requirement of 30% budget allocation to health. Water Services. The department has received 145 Million above the ceiling. The allocation is as a result of pending bills for water trucking and maintence of vehicle totaling to 240 Million. The department has actualy received below the ceiling for the current year activities. Public Service, Special Programme and Devolved units The department has received 46 million above the ceilings. This was necessitated by increase premium for comprehensive Health insurance for the county employees. Lands and Public Works The Department has received 16 million above the ceiling as a result of unpaid bills for the land Tribunal allowance relating to the previous year. B:Development CFSP 2020 Budget estimates Proportion of NO. DEPARTMENT Variance Ceiling 2020-21 variance (%) 1 Finance and Economic Planning 10,535,000 -100% (10,535,000) 2 County Assembly 0 40,000,000 100% 40,000,000 Agriculture and Livestock 3 424,893,677 571,368,127 34% Development 146,474,450 Public Health, Medical Services 4 499,285,000 831,091,191 66% and Sanitation 331,806,191 5 Roads & Transport Department 855,932,422 901,155,024 5% 45,222,602 6 Water Department 610,350,000 655,141,508 7% 44,791,508 Energy, Environment and Natural 7 169,485,000 257,038,124 52% Resources 87,553,124 Public Service, Special Programs 8 and Decentralized Unit & Town 80,060,000 39,796,592 -50% (40,263,408) Administration Wajir County Programme Based Budget FY 2020/21 Education, Youth, Gender and 9 284,123,324 225,495,312 -21% Social Services (58,628,012) ICT, Trade, Industrialization, Co- 10 91,922,500 40,681,809 -56% operative Development (51,240,691) Public works, Lands, Housing and 11 138,725,000 75,100,000 -46% Physical Planning (63,625,000) 12 WAJWASCO 328,137,500 437,000,000 33% 108,862,500 13 Municipality 226,321,750 224,643,500 -1% (1,678,250) TOTAL 3,719,771,173 4,298,511,187 16% 578,740,014 The proposed total allocation to the development vote differ with the ceiling by the CFSP 2020 by 16%. The increase in the total development is as a result of donor funds carried forward and balance brought forward from the previous year. The department that received below their ceilings had lower pending bills than those who had experienced enhanced allocations. 2. Adoption of Programme Based Budget The County treasury has Adopted Programme Based Budget for the Finance year 2020/21.programme were costed and allocated resources on priority basis. Wajir County Programme Based Budget FY 2020/21