RECOMMENDATIONS ON SHARING OF REVENUE RAISED NATIONALLY BETWEEN THE NATIONAL AND COUNTY GOVERNMENTS FOR THE FINANCIAL YEAR 2014/2015

Transcription

1 RECOMMENDATIONS ON SHARING OF REVENUE RAISED NATIONALLY BETWEEN THE NATIONAL AND COUNTY GOVERNMENTS FOR THE FINANCIAL YEAR 2014/2015 Media Briefing January 29 th 2014

2 PRESENTATION OUTLINE 1. LEGAL FRAMEWORK FOR REVENUE SHARING 2. FUNCTIONAL ASSIGNMENT FOR NATIONAL AND COUNTY GOVERNMENTS 3. THE COST OF DEVOLVED FUNCTIONS 4. SHAREABLE REVENUE 5. NON-SHAREABLE REVENUE 6. RECOMMENDATION 2

3 LEGAL FRAMEWORK FOR REVENUE SHARING The Commission on Revenue Allocation is mandated to make recommendations for equitable sharing of revenue raised by the national government between the national and county governments. 3

4 FUNCTIONAL ASSIGNMENT FOR NATIONAL AND COUNTY GOVERNMENTS National Government: Policy related Functions Concurrent Functions Non- assigned functions County Governments: re Service -related Functions Concurrent Functions 4

5 THE COST OF DEVOLVED FUNCTIONS Historical Approach Analysis of ministry budgets FY 2012/13 to 2014/15. re Add Remuneration and Administrative Cost for County Assembly County Executive 5

6 Cost of Devolved & Concurrent Functions (Kshs. Million) LOANS AND GRANTS Allocation COUNCIL Allocation CRA recommends the formation of loans and grants council. Functions: COMMISSION ON REVENUE ALLOCATION NO. MINISTRY TOTAL Budget 1) Ensure transparency in the exercise of national / county borrowing; 2) Engender public participation and debate on matters pertaining to national debt; 3) Ensure equity in sharing of the burdens and benefits from the use of external resources both across counties and over generations; 4) Ensure Industrialization that borrowing and Enterprise done prudently and payments are prompt; and 5) Ensure that public debt is sustainable and encourage fiscal management that is geared towards self-reliance. 6 to National % to Counties % 1 Health 92,495 20,700 22% 71,796 78% 2 Devolution and Planning 99,103 34,771 35% 64,332 65% 3 Agriculture Livestock & Fisheries 32,930 11,730 36% 21,201 64% 4 Lands, Housing & Urban Devt 32,918 15,697 48% 17,221 52% 5 Sports,Culture & the Arts 15,945 8,042 50% 7,903 50% 6 Devt 7,024 4,902 70% 2,121 30% 7 Transport and Infrastracture 138, ,487 78% 30,342 22%

7 Cost of Devolved & Concurrent Functions (Kshs. Million) LOANS AND GRANTS COUNCIL CRA NO. MINISTRY recommends the formation TOTAL of loans to and grants council. to Functions: COMMISSION ON REVENUE ALLOCATION 1) Ensure transparency in the exercise of national / county borrowing; 2) Engender public participation and debate on matters pertaining to national debt; 3) Ensure equity in sharing of the burdens and benefits from the use of Education, Science & external resources both across counties and over generations; 4) Ensure that borrowing is done prudently and payments are prompt; and 5) 14 Ensure Interior that & Co-ordination public debt is sustainable 100,967 and 100,722 encourage 100% fiscal management 245 0% that is geared towards self-reliance. 7 Allocation Allocation Budget National % Counties % EAC Affairs, Commerce and 8 Tourism 7,964 6,285 79% 1,679 21% 9 ICT 8,628 6,883 80% 1,745 20% 10 Labour Soc. Securities & Serv. 2,944 2,403 82% % Environment, Water & Nat. 11 Resources 67,449 58,279 86% 9,170 14% 12 Technology 126, ,806 98% 2,183 2% 13 Energy and Petroleum 58,529 58,114 99% 415 1% TOTAL 792, ,822 71% 230,893 29%

8 Total Recurrent and Development Allocation LOANS AND GRANTS COUNCIL to County Governments for FY CRA recommends the formation of loans and grants council. Functions: COMMISSION ON REVENUE ALLOCATION MINISTRY Development Recurrent Totals Kshs. Millions % Kshs. Millions % 1) Ensure transparency in the exercise of national / county borrowing; 2) Engender public participation and debate on matters pertaining to national debt; Kshs. Millions 1 Health 28, , ,796 2 Devolution and Planning 33, , ,332 3 Transport and Infrastracture 28, , ,342 3) Ensure equity in sharing of the burdens and benefits from the use of external resources both across counties and over generations; 4 Agriculture Livestock & Fisheries 9, , ,201 5 Lands, Housing & Urban Devt 11, , ,221 Environment, Water & Nat. 6 Resources 6, , ,170 4) Ensure that borrowing is done prudently and payments are prompt; and 5) Ensure that public debt is sustainable and encourage fiscal management 7 Sports,Culture & the Arts 3, , ,903 that is geared towards self-reliance. 8

9 Total Recurrent and Development Allocation to County LOANS Governments AND GRANTS for FY COUNCIL CRA recommends the formation of loans and grants council. Functions: COMMISSION ON REVENUE ALLOCATION MINISTRY Development Recurrent Totals Kshs. Kshs. Kshs. Millions % Millions % Millions 8 Education, Science & Technology , ,183 1) Ensure transparency in the exercise of national / county borrowing; 9 Industrialization and Enterprise Devt , ,121 2) Engender public participation and debate on matters pertaining to national debt; 11 ICT 1, , EAC Affairs, Commerce and Tourism ,679 3) Ensure equity in sharing of the burdens and benefits from the use of external resources both across counties and over generations; 13 Labour Social Security & Services Energy and Petroleum ) Ensure Interior & that Co-ordination borrowing of National is done prudently and payments are prompt; and 15 Government ) Ensure that public debt is sustainable and encourage fiscal management that is geared towards self-reliance. Total 124, , ,893 9

10 Cost of New County Structures (2014/15) Cost Kshs. Million Remuneration for New County Staff 38,143 Administrative Cost of New County Structures 10,126 Total Allocation to Counties 48,269 10

11 Total Cost of Devolved Functions 2014/15 (KSHS. MILLION) Cost of Devolved Functions 230,893 Remuneration for New County Staff 38,143 Administrative Cost of New County Structures 10,126 Total Allocation to Counties 279,162 11

12 LOANS AND GRANTS COUNCIL CRA recommends the formation of loans and grants council. Functions: SHAREABLE REVENUE PARTICULARS (Kshs. Million) 1) Ensure transparency in the exercise of national / county borrowing; 5) Ensure that public debt is sustainable and encourage fiscal management that is geared towards self-reliance. 12 FY 2011/12 (Audited & Approved) 12) Income Engender Tax public from participation Individuals and debate on matters pertaining 166,036 to 2 Income national debt; Tax from Corporations 146,427 33) V.A.T: Ensure equity Import in sharing and Domestic of the burdens and benefits from 176,387 the use of external resources both across counties and over generations; 4 Excise Taxes 78,884 4) Ensure that borrowing is done prudently and payments are prompt; 5 Customs and Duties 51,712 6 Other Revenues 73,437 Total Shareable Revenue 682,141

13 PROJECTED SHAREABLE REVENUE LOANS AND GRANTS COUNCIL CRA recommends the formation of loans and grants council. Functions: (Kshs. Million) 1) Ensure transparency in the exercise of national / county borrowing; 2) Engender public participation and debate on matters pertaining to national debt; 3) Ensure equity in sharing of the burdens and benefits from the use of external resources both across counties and over generations; 4) Ensure that borrowing is done prudently and payments are prompt; and 5) Ensure that public debt is sustainable and encourage fiscal management that is geared towards self-reliance. 13

14 SHAREABLE REVENUE FY 2014/15 LOANS AND GRANTS COUNCIL COMPARATIVE ALLOCATIONS AS A PERCENTAGE OF REVENUE FOR YEARS 2011/12 TO 2014/15 IN KSHS. MILLIONS CRA recommends the formation of loans and grants council. Functions: 1) Ensure transparency in the exercise of national / county borrowing; Total Shareable Revenue 2) Engender public participation and debate on matters pertaining to national debt; Allocation to the National Government 2011/12 Actual 3) Ensure equity in sharing of the burdens and benefits from the use of external resources both across counties and over generations; Allocation to Counties (2014/15) 4) Ensure that borrowing is done prudently and payments are prompt; and 5) Ensure that public debt is sustainable and encourage fiscal management that is geared towards self-reliance. % P 14 FISCAL YEARS 2012/13 Actual % 2014/15 Estimate 682, , ,074, , , , , , , Equalisation Fund 3, , , %

15 RECOMMENDATION FOR FINANCIAL YEAR 2014/ Ksh. Million Percentage Projected Shareable Revenue 1,074, % Allocation to county Governments 279, % P Equalisation Fund 3, % Allocation to National Government 792, % Percentage shares 15

16 THANK YOU rethank you