Tolgos decries underfunding, warns of financial crisis in Elgeyo Marakwet

 

Elgeyo Marakwet will plunge into a deeper financial crisis if its current allocation of Sh3.7 billion is not increased to Sh5 billion, Governor Alex Tolgos has warned.

Tolgos on Wednesday said county's annual allocation is too little to meet both its recurrent and development expenditure.

The governor declared a budget crisis after the executive differed with MCAs over reduced allocations to various departments.

In its Budget and Appropriations Bill 2019-20, the executive also recommended budget cuts for the county assembly to bridge a deficit of Sh200 million.

MCAs have twice rejected the bill leading to the stalemate.

On Monday, Tolgos invited the Senate, the Commission on Revenue Allocation the Controller of Budget and the public to help resolve the deadlock.

He said the budget crisis will delay development activities.

"We have the unresolved budget crisis which has been occasioned by the financial shortage we face as a county," Tolgos said in Iten.

The county requires Sh70 million for staff medical insurance and another Sh89 million for replacement of critical staff who have either retired or died.

"I have previously declared that this county cannot meet its development obligations with the Sh3.7 billion it receives annually from the Treasury.  This is a fact and the budget stalemate is evidence of the problems facing counties that are underfunded," Tolgos said.

The governor said he had led group urging for increased allocation for small counties like Tharaka Nithi and Lamu to receive not less than Sh5 billion.

"The leadership of Elgeyo Marakwet including our Senator, MPs, speaker and MCAs visited CRA and the Senate to argue for our case but the third draft formula by CRA did not capture our concerns," he said.

He said in the 2019-20, the CRA allocated a ceiling of Sh566 million for the county assembly and Sh535 million for the executive. He said the executive has been progressively ceding its allocation to the current Sh361 million.

"The reduction has been aimed at addressing a sustained minimum requirement of at least 30 per cent of revenue be spent on development and to accommodate increased wages occasioned by SRC circulars, CBAs and annual increments," the governor said.

The executive has 2,484 employees and the county assembly 99. The executive's budget of Sh361 is expected t cater for operations, electricity, ambulance services, water supply and monitoring of projects.

The assembly's budget of Sh566 million will pay for the Sh293 million for salaries and Sh273 million for operations. Tolgos said the assembly does not implement development projects and hence does not need excess funding.

 

edited by peter obuya