Fallacy of ‘one man one shilling’ formula in resource allocation

The National Treasury building in Nairobi.  

Photo credit: File | Nation Media Group

Propagated by some central Kenya politicians, a contentious concept of “one man, one shilling” budget allocation, which argues that counties should receive national funds in direct proportion to their economic output, as measured by gross value added (GVA), has dominated political discourse in the country lately.

On the surface, this proposal carries an alluring simplicity—those who produce more should receive more.

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Note: The results are not exact but very close to the actual.