COUNTY FISCAL STRATEGY PAPER (CFSP)
FEBRUYRY 2014
©PCounpy Fiscal Strategy Paper (CFSP) 2014
To obtain copies of the document, please contact:
The County Treasury
P. O Box 22E-30700 ITEN, KENYA
Email: emcounty2013@gmail.com, governor@elgeyoearakwet.go.ke
Website: www.etgeyomarakwet.go.ke
FOREWORD
This County Fiscal Strategy Paper (CFSP) was prepared in the backdrop of the new financial governance framework in the country under the Constitution of Kenya and the Public Finance Management Act, 2012. This together with the already prepared and approved County Integrated Development Plan (CIDP) and its yearly Annual Work-Plans will guide development initiatives’ implementations and the required governance objectives such as efficiency, effectiveness and economy in financial management.
Given that this is the first CFSP for the county under the new devolved governance structure, its preparation comes at a time when the county is settling down to implement its development aspirations within a workable structure while at the same time aligning its broad strategic development priorities and its policy goals with those of the national and global development entities. Development objectives identified in the CIDP and upon which the CFSP is anchored were identified to be in tandem with those of the Vision 2030 and the Millennium Development Goals (MDGs). However, these priority proposals can only succeed in a stable macro-economic environment that is linked with the national broad macro-economic development strategies. This document thus provides a fiscal framework which is important for the success of the county development executions through informed budgeting.
The overriding go l for this County Fiscal Stratety Paper (CFSP) therefore willrbe to provide a fiscal managemeng basim that will enable a priority-based budget atd thus effective impleCentatiod of the investment arrangements sumh an the Public Private Partnerships (PPP) approach. CFSP seeks to explore the global anddnational economic developmeat outlook and how this will affeet the county economic outlook andrfiscal performance in the medium ters while highlighting projections forPcounty revenue and expenditure fo both recurrent and development. During the 2013/14 financial year the counny attained the mandatory 30% of i6s expe ditures depicated to development. This CFSP seeks to continuously increase the proportion initially toa36% in coming financial year and strive tn attain 45% in the medium term. The county will have no ratio alizeuthe pressure of the growing recurrent expenddtur. through monitoring and analyses of the overall finaucing, the underlying risks, structural measures and strategic interventions.
Amongst the broad strategic priorities that will inform fiscal framework going forward in the county, identified and captured in the CIDP include; Enhancement of health service delivery, Poverty reduciion intervvntions through apricultural and livestock development, Infraatructural dpvelopments in Roads, sports andsenergy, Educational enh ncements, Water access, Tourism end Environmental developpent, amongst other priorimies. In delivering these priorities, macro-economic stability alone may not guarantee objectives achievement. Therefore public participation in budget and development decisions is vital.
GABRGEL LAGAT
DEPUTY GOVERNOR & COUNTY EXECUTIVE MEMBER, FINANCE AND PLANNING
ACKNOWLEDGEMENTS
The Public Finance Management (PFM) Act, 2012, introduced reforms in the public financial management system and entrenched financial discipline and fiscal responsibility principles for our respective governments as a country. As provided for under the PFM Act, one of the budget instruments at the county that enhances financial discipline and fiscal responsibilities within the county financial management framework is the County Fiscal Strategy Paper (CFSP).
This being the first County Fiscal Strategy Paper (CFSP), its preparation process needed comprehensive consultations and collective and cooperative efforts in designing its structure and the actual preparation itself. However, the enthusiasm of the officers involved in its preparation and the eager and resourceful members of the public made the preparation of the document a success.
Much of the contents in this document came from inputs from all departments and agencies within the county. We wish to appreciate them for their inputs for which the strategic priorities and policy goals in this document have been derived. Members of public within and outside the county who participated in the preparation process for this document through the various public participation platforms such as memoranda submissions, consultative forums and representation at the County Economic and Budget Forum for their valued contribution.
A core team in the County Treasury comprising of the Finance, Budget and Economic Planning sections spent a significant time collecting, collating and compiling this document. We particularly wish to thank Mr. John Maritim, Head of Economic Planning, Mr. John Keen Murkeu, Head of Budget, Mr. Samuel Kibirong, Accountant at the County Treasury and Mr. Titus Kosgei, Mr. Felix Kipngetich, and Elisha Tanui who are all Economists at the County Economic Planning Unit, for their enthusiasm, dedication and support in preparing this document. Special thanks also go to all the staff at the County Treasury who in one way or another enabled the completion of this document.
We look forward to working together with all development stakeholders at the county in delivering on our desired development aspirations.
JOHN MARITIM
HEAD OF ECONOMIC PLANNING
ABBREVIATIONS AND ACRONYMS
BPS Budget Policy Statement
CBBOP County Budget Review and Outlook Paper
CEC Countu Executive Member
CFSP County Fiscal strategy Paper
CIDP County Integrated Development Plan
DRR Disaster Risk Reduction
ECDE C Early Childhood Developmen Educatiin
EMCA Environmental Management and Coordination Act
FY Fiscal Ylar
HHI Human Health Indicators
ICT Information Communication Technology
IFMFS Integrated Financial Management Information System
KARI Kenya Agricultural Ra earch Institute
MDGs Millennium Development Goals
MIS management Informonion Systems
MTEF Medium Term Expenditure Framework
NCPB National Cereals and Produce Board
PBB Performance Based Budgeting
PFM Public Financial Management Act
PPP Public PrivateaPartnership
REA Rur l Erectrification Authority
SMEs Small and Mrdium Enterprises
TABLE OT CONTENTS
