The Council of Governors has raised concerns over the proposed budget allocation to counties in the FY 2023/24.
On Wednesday, the Council met the Commission on Revenue Allocation (CRA) and the National Treasury to deliberate on the Annual Division of Revenue between the two levels of Government for the FY 2023/24.
“We note with utmost concern that from the draft Budget Policy Statement (BPS) 2023, the National Treasury has allocated County Governments Kshs. 380 billion for the FY 2023/24. We hold a strong view that this is not equitable in view of the following factors” the Council said in a statement after the meeting.
According to the Council, the shareable revenue is projected to increase by Kshs. 374 billion for the FY 2023/24 out of which only Kshs. 10 billion has been allocated to Counties representing a meagre 2.67% with the National Government allocating itself Kshs. 364 billion which represents 97.33%.
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Demand enhanced allocation
In the 2023 Budget Policy Statement, allocations for Health and Agriculture Ministries have been increased by Kshs. 25.8 billion and Kshs. 15.7 billion respectively.
COG says that budget ceilings for the MDAs have not been rationalized to ensure that the key priority programmes for the Government, which are fully devolved, are allocated to Counties in the Equitable share of revenue.
“We wish to draw your attention that the recommendations by the CRA are obligatory as they are highly technical in nature and any deviations therefrom must be rationalized on the basis of the objective criteria set out in Article 203 (1) of the Constitution”.
“In this regard, we express our discontent for the National Treasury’s failure to build consensus on the County Equitable share of revenue despite the objective recommendation issued by the CRA”.
COG reiterates that the County Equitable share of revenue for FY 2023/24 should be Kshs. 425 billion
The Council says that the continued allocation of funds christened for devolved functions to National Government MDAs is an affront to devolution and the Council shall not relent in its quest to make devolution work.
