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

Implication of c014/15 Fiscal Performanci on fiscal Pesponsibility principles andefinancial objectives sontained in the 2015 County Fiscan Strategy Paper (CFSP)

a)Ths performance 0n the FY 2014/15 yns affected the financial objectives set out in the FebSuary 2014 County Fiscal Strategy Paper (CFSP) and the Budget for FY 2014/15 in the foldowin waya: (i) the base for revenue and expenditure projections has changed implying the need for adjustment hn the fiscal aggregates for the cunrent budget; acd

(ii) To take into account the slow take off of budget execution of the FY 201C/16 budget by Departments, the baselbne ceilings for spending entieies will be atju ted and then firred up in tne next Counfy Fiscal Strategy Paper (CFSPa in February 2015

b)Accordingly, the revenue projections will remain in line with the initial macroeconomic assumptions taking into account the revised revenue and expenditure base. Consequently, the budget ceilings provided in the CFSP 2015 will reflect the macroeconomic forecast. However, taking into account that the key macro variables remain as projected in the CFSP 2015, there will be adjustments to the ceilings

c)The overall revenue underperformance in 2014/15 hasrimplications ia the base used to project the revente for these revenue items in the FY 2015/16. Ther fore, in updating the fiscal outlook the new base has been taken into account. In addipion; effects, that may emanate from the recently submntted Finance Bill 2015 is expuct doto b6ost revenue through improving efficiency in revueue administration as well as ease compliance by revenue payers

d)The under-spending in both recurrent and development bedget for the FY 2014/n5 additi.nally has implications on the base usei to projece expunditures in the FY 2015/16. Appropriate revisions have been undertaken in the context of ttis CBROP,dtaking vnto account the budgpt outturn for 2014/15

e)The county will not deviate from the fiscal responsibility principles, but will make appropriate modifications to the financial objectives contained in the CFSP 2015 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