Tuesday, 09 March 2021 11:13


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County Governments are expected to get Sh370 Billion in this year's budget, an increase from Sh316.5 Billion they were allocated in the 2020/2021 financial year. This is after an adjustment of revenue growth amounting to Ksh53.5Billion as follows; Ksh 36 Billion from revenue growth and Conversion of four Conditional Grants amounting to Ksh 17 Billion, that is, Ksh 4.32Billion Conditional allocation for Level 5 Hospitals, Ksh. 0.9 Billion Compensation for User fees foregone, Ksh 2.0 Billion Rehabilitation of Youths Polytechnic and Ksh. 9.8 Billion Road Maintenance Levy Fund.
This was resolved during the 14th Ordinary Session of Intergovernmental Budget and Economic Council (IBEC) meeting held on Wednesday 10th February 2021, chaired by Deputy President H.E Dr. William Samoei Ruto, and attended by Amb. Ukurn Yattani, Cabinet Secretary, National Treasury and Planning, Charles Sunkuli,Principal Secretary Ministry of Devolution and ASALs,Chairperson, Commission on Revenue Allocation,Dr. Jane Kiringai and the Controller of Budget Margaret Nyakang'o. aslo in attendance was the chairperson Intergovernmental Relations Committee, Representatives from Ministry of Education, Council of Governors led by H.E Ndiritu Muriithi, Chairman, Finance Planning and Economic Affairs committee, H.E Prof. Paul Chepkwony, H.E Prof. Anyang' Ny'ongo, County Executive Committee Members of Finance among others.
Counties will also be at liberty to borrow up to Ksh60 Billion to bridge the shortfall in development expenditure in the current budget, in light of the resolution made during the IBEC meeting.
The increment was as a result of the Presidential pledge to allocate County Governments an additional Ksh 53.5 Billion for the FY 2021/2022 during a meeting held at State House on 15th September 2020 and the Senate resolution on the Third Basis for allocation among the counties on the share of national revenue that is annually allocated to the county level of government for the financial years 2020/2021 to 2024/2025.
The additional funding shall ensure no county shall receive in any financial year, an amount of shareable revenue that is less than the amount of shareable revenue received by the county in the financial year 2019/2020.” stated the Senate Resolution. The increase in allocation to County Governments is expected to improve development at the County Level.

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