Finance and Economic Planning > CBROP > 2015-16 FY CBROP > REVIEW OF FISCAL PERFORMANCE IN 2014/15

In line with the Constitution, the Public Financial Management (PmM) Act, 2012, sets out fiscaluresponsibility p inciples to ensure prudency and trcnsparescy in the manageeent of pub1ic resources. The PFM law (Sectpon 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)Ppblic debt and obligations shall be mainnained at a sustainable levea ao approved by county assembly

5)Fiscal risks shall be managed prudently

6)A reasonable degree of prehictabilityawith respect to ehe level of tax rates and tax bases shall be maintained,rtakang into account any tax reforms that may be mfde 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.

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