Governors oppose new budget plan

The Council of Governors has termed as meagre, the proposal to increase the allocation to counties by Sh48 billion in the next financial year.

The chairman, Mr Isaac Ruto, told the Nation that they would not accept anything less than 45 per cent based on the last financial year’s audited revenue accounts.

He said for the devolved units to function effectively and implement their various development programs, the allocation to counties needed to be increased significantly.

“The said Sh48 billion allocation to counties in the proposed budget is little and is not in line with our push for increased revenue allocation to the units,” the Bomet governor said.

“The national government has no choice but to release at least Sh414 billion of the total national revenue collected during the last fiscal year.

NOT RELENT

We will not relent in our fight to have 45 per cent of the national revenue as anchored in the Constitution,” he added.

Mr Ruto was speaking barely two days after the National Treasury said that counties could get Sh274 billion in the 2015/2016 budget, an increase of Sh48 billion, if proposals by the government are adopted.

In a budget policy statement, the government says it will be relying on the audited 2012/2013 accounts.

The amount includes the Sh253.5 billion released as the unconditional allocation to county governments in accordance with the formula for sharing of revenue approved by Parliament.

The increment will account for 35 per cent of the most recently audited revenues approved by the National Assembly.

The Treasury said the allocation was above the 15 per cent of the latest audited revenues of Sh776.9 billion for the 2012/2013 financial year.

PESA MASHINANI

The Council of Governors has been pushing for allocation of money to devolved units based on the current budget. However, the national government has maintained that allocations be based on the last audited accounts.

The counties were allocated at least Sh193.4 billion in 2013/2014 before it was increased in the current fiscal year to Sh228.5 billion.

On Sunday, the Bomet governor said if the government was out to give counties 35 percent of the revenue collected during the last financial year, it would contradict the 45 per cent which President Kenyatta promised during his speech to mark last year’s Jamhuri Day.

The issue of how much the government should allocate to counties has been controversial with Cord and a section of governors pushing for more funds. 

Mr Ruto clarified that governors were demanding only 45 per cent of the total revenues collected in the previous year but not that of the country’s entire budget.

TOO MUCH

“It is not true that we are demanding for 45 per cent of the budget but rather 45 per cent of the national revenue allocation,” said the chairman.

“If you gave us 45 per cent of the entire budget, we would not know what to do with that kind of money as it will be too much,” he added.

Meanwhile. Baringo Senator Gideon Moi and Baringo Central MP Sammy Mwaita applauded proposals by the government to increase funds to counties in the 2015/2016 budget to Sh274 billion up from the current Sh228.5 billion.

Speaking yesterday during a funds drive at Seretunin Mixed Day Secondary in Baringo Central sub-County, the leaders said that the increment would boost service delivery to wananchi at the county level.

“We support any plans to allocate more resources to the 47 county governments for the fruits of devolution to be felt effectively,” Mr Moi.