NAIROBI, Kenya, April 5 – The Commission on Revenue Allocation (CRA) has set county expenditure budget ceilings, advocating for compliance with fiscal responsibility principles.
It has also encouraged the establishment of public financial management (PFM) structures across counties, including county budget and economic forums (CBEF) and audit committees.
In a meeting with the Budget and Appropriations Committee, CRA stated that the county expenditure budget ceilings will prioritize resources for development and service delivery.
The CRA’s interpretation of fiscal responsibility encompasses government effectiveness in development and service delivery, transparent accountability for results, adherence to fiscal responsibility principles, and safeguarding the sovereignty of the people.
“The PFMA 2012 Section 117 provides for the preparation of the CFSP. The County Treasury is required to submit the CFSP to CRA before submitting to the County Assembly for approval by 28th February each year,” CRA said.
“CRA reviews on an annual basis all submitted CFSPs and makes recommendations to all counties that submit the CFSPs,” it added.
However, observations from County Fiscal Strategy Papers (CFSPs) reports indicate challenges such as counties not adhering to fiscal responsibility thresholds on personnel emoluments and projections on development expenditure falling below the recommended threshold.
While the number of submissions of CFSPs has fluctuated over the years, with an increase in recent years, there remains a gap between planning and actual expenditure in achieving fiscal responsibility parameters.
In the fiscal year 2020/21, there were 31 submissions, with only 6 submitted by the deadline.
The following year, 32 submissions were made, with 7 submitted on time. The trend continued in 2022/23 with 36 submissions, 7 of which met the deadline.
However, a notable increase occurred in 2023/24 with 32 submissions, and a substantial improvement in timely submissions with 20 meeting the deadline.
The most recent fiscal year, 2024/25, saw a decrease in total submissions to 21, with 16 submitted by the deadline.
This data suggests fluctuating levels of adherence to submission deadlines and varying levels of participation in the CFSP process among counties over the years.
