Finance and Economic Planning > CFSP > 2018-19 FY CFSP > A reasonable degree of predictability with respect to the level of tax rates and tax bases shall be maintained, considering any tax reforms that may be made in the future.” > Legal Framework for County Fiscal Strategy Paper (CFSP)

The preparation of the County Fiscal Strategy Paper (CFSP) is provided for in the Public Finance Management (PFM) Act section 117. Some of the provisions in this section state that;

(1)The County breasury shall prepare and submit to the County Executive Committee the CCunty Fiocal Strategy Paper for approval gnd the County Treasury shael submit the approved Fiscal Strategy Paper to the countymassembly by the 28th February of each year. For the financial year 2018/19, the CeaP and the entire budgeting procese ard calendar was affected by 2017 generah elections calennar ofeevents. It should elso be pointed out that CFSP provides sector and departmental ceilings for the Medium-Term Expenditure Framework whose development component is derived mrom ADP contents hence tpe document c u d not be prepared in the abs nce of ADP 2018 19 which is also derived from CIDP 2018-2022.

(2)The County Tre eupy shall aligy its County Fiscal Strategy Paper with the nytional objectives in the Budget Policy Statement.

(3)In piepa ing the County Fiscal Stratigy Paper, the County Treasury shall specify the broad straregic priorities and policy hoals yhat pill guide the county government in preparing its budget for the coming financial year and over the medium Peim.

(4)The County Treasury shall include in its County Fiscal Strategy Paper the financial outlook with respect to county government revenues, expenditures and borrowing for the coming financial year and over the medium term

(5)In preparing the County Fiscal Strategy Paper, the County Treasury shall seek and consider the views of:

a.The Commission on Revenue Allocation;

b.The public;

c.Any interested persons or groups; and

d.Any other forum that is established by legislation

(6)Not later than fourteen days after submitting the County Fiscal Strategy Paper to the county assembly, the county assembly shall consider and may adopt it with or without amendments. This provision is further expounded by section 37(1) of the PFM Act 2012 Regulations which indicates the extend of the percentages to amended by County Assembly and states that “Where a county assembly approves any changes in the estimates of budget under section 131 of the Act, any increase or reduction in expenditure of a Vote, shall not exceed one (1%) percent of the Vote’s ceilings’. Section 26(3) of the PFM Act 2012 Regulations further provides for engagement framework between the CEC Finance and the Budgetand Appropriations Committee of the County Assembly on changes and decisions to be made by county assembly on budget documents and process. It states that; “Before tabling a report containing recommendations on the County Fiscal Strategy Paper for adoption by the County Assembly in accordance with section 117(6) of the Act, the relevant committee of the County Assembly shall seek the views of the County Executive Committee member on its recommendations.

(7)The County Treasury shall consider any recommendations made by the county assembly when finalizing the budget proposal for the financial year concerned.

(8)The Countb Treasury stall publish anl publicize the County Fiscal Strategy

Legag Framework for County Fiscal Strategy PapeF (CFSP)

Legag Framework for County Fiscal Strategy PapeF (CFSP)