The CoG Finance committee chairperson Fernandes Barasa has voiced their dissatisfaction with the 2023 budget policy statement.
Barasa said upon review of the 2023 budget policy statement, they note that counties will face major challenges in the performance of functions for the financial year 2023-24.
"The council does not agree with the National Treasury's projected allocation to county governments of Sh380 billion as equitable share of revenue," he said.
According to the legislator, the allocation is pegged on financial constraints as opposed to the budget, which negates the desirability of a stable and predictable allocations of revenue as stipulated under Article 202.
Barasa further said the move to allocate revenue to national government ministries, departments and agencies for programmes that fall under the devolved functions contradicts the provisions of Article 203, on the need to ensure that county governments are able to perform their functions.
"These allocations lead to duplication of functions," he said.
The governor added that the allocation is based on the audited and approved revenues of the financial year 2017-18.
This he says, does not meet the constitutional requirement of the most recent audited accounts of revenue received and as approved by the National Assembly.
"In this case the accounts for financial year 2019-20 amounting to Sh1.73 trillion. This essentially reduces the allocation to the equalisation fund from Sh8.7 billion to Sh7.5 billion," he said.
Barasa said the adjustment for revenue growth of Sh10 billion is not commensurate with the projected revenue growth of Sh374 billion for the financial year 2023-24.
"We therefore propose an adjustment of revenue growth of at least 15 per cent to bring county governments allocation to a minimum of Sh424 billion for the financial year 2023-24," he said.
