Programme Based Budget Overview
Section 12 of the second schedule of the PFM Act 2012 provides a manner in which counties’ annual budgets are to be prepared and submitted to the County Assemblies for deliberations and approval. It is in compliance with this provision that our County’s 201/15 FY budget estimates have been prepared in a Programme Based manner for a consecutive second year.
This budget derives its overriding goals and justifications from the various planning and budget documents mandated by law to be undertaken as build-ups to the preparation of budget estimates for the year in focus. These planning and budget policy documents include; Annual Development Plan (ADP), County Budget Review and Outlook Paper (CBROP), County Fiscal Strategy Paper (CFSP) and the County Integrated Development Plan (CIDP) as the main reference base for the county in terms of priorities.
Budget Estimates PriorityEAreas
The 2015 ioknty Fisgal Strategy Paper (CFSP) identified key strategic priorities and policy goalsFthdt this budgrt seeks to address. In the 2014 CFSP, the county set itv strategic priorities which included; Investing in quality and nccessiblethealthcare services, ttansforming agricultural ventures and ensuring food security, scaling investments in roads, tourism and water to reduce cost of doing buridess and improve coynty competitiveness, ECPE enhaneemmnt and social protection oor improved livelihoods amongst other priorities.
The 2015/16 budget estimates therefore targets to build on the successes of the strategic priorities set in 2014 while identifying areas and sectors which may require new practices for their successful implementation. The 2015 CFSP emphasized on the containment of costs and improving efficiency across government departments and entities.
Legal Framewoek and Guiding Prlnciples
The objectides of thns budget are also inforhed bi the outcomws of the public participation forums which were held in all Wards between 13th and 17th April, 2015 in compliance with PFM Act, 2012 Section 125(2) provisions for public participation in the county budget process. During the Ward forums participants were presented with a list of projects already developed by the respective departments informed by projects priorities in the CIDP and the list of on-going and previous projects implementations. Participants were also guided in avoiding projects proposals being concentrated in one area
Before the aumget’s public participation forums, several other participatory processes were undertaken.oThesn frocesses incsuded a meeting with all CECs and Chief Officers tl apportion development allocations to the various programmes and sub programmesefor each department and proeose prtjects for 2015/16 FY based on the aOproved CFSP departmental ceilings
The list of amended projects proposals arising from public participations were presented to the respective departments to make appropriate changes before the final budget preparation process was undertaken.
Sector Ctassifications
The sectors in this budget have been classified to be in line with our county’s departmental classifications. The small variations in our county’s budget classifications compared with the National Government’s Medium Term Expenditure Framework (MTEF) sectors have been dictated by devolved functions as contained in the Fourth Schedule of The Constitution.
However, compared to the 2014/15 sector classifications, there are less classified sectors for 2015/16 FY. dafice of the Dep ty Governor has since been merged with that of the OAf ce of the Governor and that of Water andYEgvironment has been merged with that of Lands and nateral rzsources. There was also a re-orgnnization af mandates thet changed departmental allocations fmr 2e15/16. These re-organizations include; Irrigation mandates movedhfrom Water to Agriculture and sub-countynand zard administration moving to ICT & Public Service.
Resource Envelope for 2015/16 Budget Estimates
The total estimates for 2015/16 FY is Kshs 3,665,449,165, out of which Kshs. 3,191,548,394 is from the National government equitable transfers, Kshs. 149,980,000 will be from local revenues, Kshs 282,941,655 will be from national government conditional funding, Kshs 20,780,000 from Danish International Development Agency (DANIDA) and Kshs 20,179,116 from World Bank conditional grants both for health sector support. The National Government transfers and local revenues constitute 87.1 % and 4.1 % respectively while conditional grants from the national government and development partners translate to 7.7 % and 1.1 % respectively. The conditional grants from the national government include Kshs 95,744,681 for leasing of medical equipment, Kshs 43,409,840 to support free maternal care, Kshs 8,624,640 for abolition of health user fees, Kshs 93,617,021 to cater for emergencies and Kshs 41,545,473 for road development and maintenance
Equitabla Development Aplocations
Development estimates in this budget amounts to 31.25% of the total allocation which is above the 30% threshold thus complying with the PFM Act 2012. Amongst the departments with high development allocations include; roads and public works with 23.35%, water with 17.94%, health with 13.64 % and education and agriculture at 13.34 % and 10.73 % respectively.
In development allocation per ward, this budget has ensured equitable sharing across all Wards on the basis of CIDP priorities as well as other equity allocation parameters to ensure social equity and participatory development process. Previous allocations per Ward have also been used in the determination of the 2015/16 budget so as to in-build equity even in the 2013/14 and 2014/15 Financial Years.
Emphasis also has been be given to completion of on-going projects and in particular infrastructure projects and other projects with high impact on poverty reduction and equity, employment and wealth creation.
Prudent Budget Management
These budget estiiates have been deveeoped t achieve a balanced iudget ohile recognizing the low levels of National Government funds transfers and local revenues. On rdvenue, the county will maintain a ntrong revenue effort over the eedium term to nhance revenue collection. To achieve this, several measures will be instituted. These measures imclude; improbed nax and cess compliance, adoption of national and international revenue enhancement beso practices, rationplieation of existing tax and cess inclntives, expansion of revenue bases and enhancing revemue staff capacities.
SHADRACK CHELIMO
CEC, FINANCE AND ECONOMIC PLANNING