County governments, Parliament and the Judiciary are the biggest winners in the next budget after MPs approved Sh368 billion to the three entities to run services in the financial year starting July 1, 2019.
The Budget and Appropriations Committee has capped the ceiling for county governments equitable share at Sh310 billion up from Sh304 billion the Treasury had allocated in the Budget Policy Statement (BPS).
The committee is also proposing additional Sh61.6 billion in conditional allocations from the national government equitable share to counties bringing the total allocations to the 47 devolved units to Sh371.6 billion.
The ceiling for Parliament has been increased to Sh39.5 billion while that of the Judiciary has been capped at Sh18.94 billion.
The Treasury had allocated Parliament Sh38.5 billion and awarded the Judiciary Sh17.45 billion in the BPS.
The MPs capped the ceiling for the national government at Sh1.766 trillion for the financial year 2019/20.
“The committee emphasises that there shouldn’t be any in-year revisions on county allocations in order to enhance predictability in resource allocation.
“It is important, therefore, for the revenue projections to be as realistic as possible as this will affect the division of revenue,” Kimani Ichung’wa, who chairs BAC, said in a report to Parliament.
The committee has proposed to allocate counties Sh38.7 billion from loans and grants, Sh8.98 billion from fuel levy and Sh2 billion for rehabilitation of village polytechnics.
Counties will also receive Sh6.2 billion for the leasing of medical equipment, Sh4.3 billion for Level Five hospitals, Sh900 million compensation for user fees foregone and Sh485.2 million for construction of county headquarters.
The MPs have set aside Sh5.8 billion for Equilisation Fund.
In reallocating the Treasury budget, BAC is proposing to cut Sh200 million from State Department of Interior to finance criminal investigation services (Sh100 million) and coast guard services (Sh100 million).
In the agricultural sector, coffee reforms has been allocated Sh300 million while miraa revitalisation project lost Sh600 million from an allocation of Sh1 billion to cover other crops.
The controversial Galana Kulalu project, which had been allocated Sh55 million, lost Sh35 million that had been reallocated to national expanded irrigation programme.
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