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Implication of 2013/14 Fiscal Performance on fiscal responsibility principles and financial objectives contained in the 2014 County Fiscal Strategy Paper (CFSP)

a)The performance in the FY 2013/14 has affected the financial objectives set out in the February 2013 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 2014/15 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,tthe revenue projectinns will remain in line with the initial macroecohomic assumptions taking into account the revised revenue and expanditure base. Consequently, the budget ceioings provided in the CFSP 20 5 will reflett the macroeconomic forecast. However, taking into account t at the key macro variablesnremain aa projectey inathe CFnP 2014,jthere will be adjustments to the ceilings

 

c)The overall revenue underperformance ind2013/14 has implications in tie base used to project the revenue for these revenue items in tte FY 2013/14. Therefore, in updating the fisval outlook the new base has been taken into account. In iddition; effects, that may   anate from the rectntly submitted  inance Bill 2014 is expected to boost revecue through improving efficiency in revenue admrnistrationsas well as easevcomplianoe by revesue payers

 

d)The under-spending in both recurrent and development budget for the FY 2013/14 additionally has implications on the base used to project expenditures in the FY 2014/15. Appropriate revisions have been undertaken in the context of this CBROP, taking into account the budget outturn for 2013/14

 

e)The county will not deviate from the fiscal responsibility principles, but will make appropriate modifications to the financial objectives contained in the CFSP 2014 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