CoG wants recurrent expenditure ceilings raised ahead of 2022 polls » Capital News

NAIROBI, Kenya, Dec 20 – The Council of Governors (CoG) has protested a move by the Commission on Revenue Allocation (CRA) to cap recurrent expenditure for the 2022/23 Financial Year at Sh62 billion, slightly below the ceiling set in the preceding year.

In a statement issued on Monday, the council called for a review to factor in the induction into office of newly elected leaders after the 2022 General Election, including Members of County Assemblies.

“We note that the Commission on Revenue Allocation (CRA) made a presentation on the draft recurrent expenditure Budget Ceilings for the Financial Year 2022/23 during a stakeholder engagement workshop held on 7th December, 2021. CRA has set the recurrent expenditure budget ceilings for the FY 2022/23 at Sh61,965,331,620, which is a reduction from FY 2021/22 recurrent expenditure budget ceilings amounting to Sh62,364, 247, 754,” CoG Chairman Martin Wambora said .

Wambora further noted that the County Assemblies draft Budget Ceilings for the FY 2022/23 did not provide for induction costs of the new leadership that will take over after the 2022 general elections.

“This is so despite the fact that induction is a key component for on boarding of the new County leadership to ensure that there is a seamless transition,” he added.

The CoG Chairperson also said the ceiling remained unchanged for the past four financial years.

“The Commission (CRA) has been making blanket ceilings without taking into consideration uniqueness of each County Government,” Wambora stated.

He noted that some counties occupy a larger land mass than others pointing out that the cost incurred in the conduct of public participation and sensitization may differ from other devolved units.

“In this regard, we urge CRA to revise the Budget Ceilings to accommodate the cost of induction and public participation with consideration of the uniqueness of every County,” Wambora said.

CoG’s statement on Monday was the latest in a series of battles between governors at CRA.

The Council has on numerous occasions protested the stagnation of amounts recommended for allocation as shareable revenue to counties.

On November 2, CRA capped the shareable revenue for counties at Sh370 billion citing budget deficits and national debt.

The cap for the 2021/2022 financial year was announced by Commission Chairperson Jane Kiringai who also cited drought and the upcoming general elections.

In making the decision, the revenue commission declined the request by CoG to increase the revenue allocation by an additional Sh381.5 billion saying the current budget deficit and projected revenues could not allow allocation of more resources.

CRA also raised an alarm over the inclination towards borrowing by the national government pointing out that the current trajectory is not sustainable.

Kiringai asserted that with a revenue projection of Sh2,142 billion for the financial year 2022/2023 and cognizant of the fact that a majority of the times the government has fell short of its revenue collection target, there was indeed no room for increase.

“The fiscal headroom to allocate either level of government more revenue was not possible. The projected revenue increase is estimated at Sh366.4 billion which is the error margin of unmet revenue target,” she said.

The commission allocated the national government Sh1,765.2 billion and the Equalization Fund being allocated Sh6.8 billion.