2014/2015 County Budget Review Outlook Paper

COUNTY GOVERNMENT OF UASIN GISHU

THE COUNTY TREASURY

COUNTY BUDGET REVIEW AND OUTLOOKPAPER 2013/2014(CBROP)

SEPTEMBER 2014

County Budget Review and Outlook Paper (CBROP) 2014

The County Treasury P. O. Box 40-30100 ELDORET, KENYAEmail: [email protected]: www.uasingishu.go.ke

FORWARDThe Constitution of Kenya 2010 introduced significant changes to the governance structure in Kenya that saw the creation of national and county governments each with clear functions. To operationalize the fiscal discipline spirit within the constitution, the Public Finance Management Act was enacted in 2012.The Act transformed budget making process in Kenya for both level of governments. Besides introducing reforms in the public financial management system in the country, the PFM Act entrenched financial discipline and fiscal responsibility principles for the respective governments.The County Budget Review and Outlook Paper (CBROP) was prepared by the County Treasury pursuant to the provisions of section 118 of the Public Finance Management (PFM) Act 2012. The Act requires that the budget review and outlook paper (BROP) is submitted to the County Executive Committee by 30th September of the year; the BROP being one of the budget documents meant to enhance financial discipline and fiscal responsibilities within the countys financial management framework. The CBROP presents the actual fiscal performance for financial year 2013/14 and indicating deviations from the budget appropriation for that year. In addition, it provides details on how actual financial performance for the previous financial year may have affected compliance with the fiscal responsibility principles. Further, the updated macroeconomic outlook opined to in this paper also provides a basis used to revise the 2013/14 financial year budget in the context of the Supplementary Estimates, as well as set out the broad fiscal parameters for the next budget.The paper also gives an insight into the 2013/2014 budget; key government strategies and policies for the management of revenues and expenditures; and the medium-term outlook for government revenues and expenditures.

SHADRACK SAMBAI,CEC, FINANCE AND ECONOMIC PLANNINGUASIN GISHU COUNTY GOVERNMENT

ABBREVIATIONS AND ACRONYMSA.IAAppropriation in AidCBROPCounty Budget Review and Outlook PaperCFSPCounty Fiscal Strategy PaperCIDPCounty Integrated Development PlanECDEEarly Childhood Development EducationIFMISIntegrated Financial Management Information System NCPBNational Cereals and Produce BoardPFMAPublic Finance Management Act

TABLE OF CONTENTSFORWARD2ABBREVIATIONS AND ACRONYMS31.0INTRODUCTION51.1LEGAL FRAMEWORK51.2OBJECTIVES OF THE CBROP62.0REVIEW OF FISCAL PERFORMANCE IN FY 2013/1472.1OVERVIEW72.2FISCAL PERFORMANCE82.2.1Revenue82.2.3Expenditure103.0RECENT ECONOMIC DEVELOPMENTS AND OUTLOOK123.1RECENT ECONOMIC DEVELOPMENTS123.2MACROECONOMIC OUTLOOK AND POLICIES133.3GROWTH PROSPECTS (REVENUE OUTLOOK)143.4MEDIUM TERM FISCAL FRAMEWORK174.0RESOURCE ALLOCATION FRAMEWORK184.1EXPENDITURE JUSTIFICATIONS184.2FISCAL RISKS TO THE OUTPUT194.3EXPENDITURE DRIVERS195.0CONCLUSION20ANNEX 1:22

1.0INTRODUCTIONThis section presents the legal framework underpinning the county budget review and outlook paper (CBROP). It also gives objectives of CBROP.

1.1 LEGAL FRAMEWORKSection 118 of the Public Finance Management (PFM) Act 2012 requires the County Treasury to prepare County Budget Review and Outlook Paper (CBROP) for the county and the same to be submitted to the County Executive Committee by 30th September of the year. This BROP was therefore prepared by the County Treasury in pursuant of this provision. The PFMA 2012 section 118 (1) states thus; the county treasury shall prepare a County Budget Review and Outlook Paper in respect of the county for each financial year; and submit the paper to the County Executive Committee by the 30th September of that year.The County Budget Review and Outlook Paper is required to detail the fiscal performance for the previous financial year and to indicate how this affects the financial objectives contained in the CFSP of that particular year. However, this is not possible in this years CBROP because there was no CFSP for the financial year 2013/2014 given that the county government only came into being after the 4th March, 2013 General elections. The last financial year was a transition period meant to lay foundation and guide the operations of the devolved structure of governance. This CBROP cannot therefore contain information to show variations in the forecasts in the CFSP.

Upon this background the CBROP does not make any reference to the CFSP and only looks at the fiscal outlook of the financial year and the medium term.The county will comply with fiscal responsibility principles and ensure transparency and accountability by providing feedback on performance indicators as envisaged in the Constitution 2010 and the Public Finance Management Act 2012.

1.2 OBJECTIVES OF THE CBROPThe CBROP draws its objectives from Public Finance Management Act 2012 section 118 (2). The main objectives are to specify;a) The details of the actual fiscal performance in the previous year compared to the budget appropriation for that year; b) The updated economic and financial forecasts in relation to the changes from the forecasts in the most recent County Fiscal Strategy Paper(CFSP); c) Any changes in the forecasts compared with the CFSP; d) How actual financial performance for the previous financial year may have affected compliance with the fiscal responsibility principles, or the financial objectives in the CFSP for that financial year; ande) Reasons for any deviation from the financial objectives in the CFSP together with proposals to address the deviation and the time estimated for doing so.In summary, this BROP is expected to present a review of the fiscal performance for the financial year 2013/2014. It is also expected to provide a summary of the national macroeconomic outlook and how this affects the Countys economic performance.

The fiscal framework presented in this document provides a strong basis for future developments for the people of Uasin Gishu. The paper also presents an overview of budget financing sources that includes revenue and grants. In the last section of the document, the paper presents conclusions and the way forward.

2.0 REVIEW OF FISCAL PERFORMANCE IN FY 2013/14This section reviews the actual financial performance for the FY 2013/14 and how this might have affected compliance with the fiscal responsibility principles.2.1 OVERVIEWThe fiscal responsibility principles are meant to ensure prudency and transparency in the management of public resources. The principles as illustrated in the Public Finance Management Act 2012 Section 15 require that:a) Over the medium term, a minimum of 30% of the county budget shall be allocated to development expenditure;b) The county governments expenditure on wages and benefits for public officers shall not exceed a percentage of the county governments revenue as prescribed by the regulations;c) Over the medium term, the county governments borrowings shall be used only for the purpose of financing development expenditure and not for recurrent expenditure;d) Public debt and obligations shall be maintained at a sustainable level as approved by county assembly;e) Fiscal risks shall be managed prudently;f) A reasonable degree of predictability with respect to the level of tax rates and tax bases shall be maintained, taking into account any tax reforms that may be made in the future.The fiscal performance in 2013/14 faced quite a lot of challenges especially occasioned by revenue shortfalls and increased expenditure pressures. This led to supplementary budgets being presented to county assembly for consideration. However, fiscal performance was generally satisfactory.

2.2 FISCAL PERFORMANCE2.2.1 RevenueTable 1: Consolidated Revenue July 2013 to June 2014ITEM1ST QUARTER2ND QUARTER3RD QUARTER4TH QUARTERTOTAL

Court Fines1,889,425.001,593,615.001,415,672.002,005,472.006,904,184.00

Financial Management Unit2,646,965.001,856,773.004,667,942.003,943,673.0013,115,353.00

Street Parking13,880,010.0018,574,890.0019,743,925.0020,410,422.0072,609,247.00

Land Rates Management Unit12,481,498.009,744,392.0070,995,531.0030,192,120.00123,413,541.00

Business Permit Management Unit4,748,481.001,065,640.0087,567,340.0021,013,806.00114,395,267.00

Cess Management Unit653,502.002,967,087.008,135,764.003,281,456.0015,037,809.00

Home Craft Center Management35,400.0034,800.0037,300.0032,250.00139,750.00

Social Service and Housing Management Unit9,578,174.007,826,285.0010,320,502.008,662,974.0036,387,935.00

Nursery School Fees261,950.00156,700.00329,300.00257,500.001,005,450.00

Epidemic Control and Inspection Unit138,400.00282,550.00706,460.001,243,800.002,371,210.00

Cemetery Unit213,600.00177,400.00226,200.00224,100.00841,300.00

Pest Control Unit49,720.0048,210.00381,380.001,112,640.001,591,950.00

Health Centers and Maternity Fees845,590.00341,020.00674,000.00766,050.002,626,660.00

Refuse Collection Unit298,300.00151,415.009,071,760.001,648,184.0011,169,659.00

Slaughter House Management Unit1,201,225.001,433,230.002,670,570.00983,595.006,288,620.00

Engineering & Urban Planning Management Unit10,263,177.008,919,373.0022,754,668.0013,290,725.0055,227,943.00

County Markets3,803,612.092,955,771.004,455,536.003,978,550.0015,193,469.09

Bus Park Fee13,762,240.0015,183,815.0020,912,106.0019,782,101.0069,640,262.00

others charges20,925.0094,120.001,500,970.001,616,015.00

Cooperative societies Audit and supervision170,650.00317,770.00488,420.00

Uasin Gishu District Hospital0.000.00

Huruma Sub-District Hospital184,400.00184,400.00

Alcoholic Drinks License13,421,000.0013,421,000.00

Direct Banking17,492,091.254,932,218.8034,592,325.3544,688,086.65101,704,722.05

TOTAL94,264,285.378,339,304.80301,514,301.3191,256,274.6665,374,166.14

Graphical illustration of the quarterly revenue performance during the period under review is given below:

Graph 1: Quarterly Revenue Performance

Graph 1above shows graphical picture of quarterly revenue performance during the period under review. Revenue collection dropped in the second quarter (October-December 2013) from the previous figure in the first quarter (July-September 2013). However, collections increased sharply in the third quarter (January-March 2014), before again dropping in the fourth quarter (April-June 2014). The sharp increase in revenue collection in quarter three was because that is normally the peak period in revenue collection. This is the time during which clients make payments on land rates and renewal of single business permits by entrepreneurs.

Table 2: Projected Revenue from Local Sources 2013/14 FY.ACCOUNT DESCRIPTIONESTIMATES

LAND RATES 316,176,614

BUSINESS PERMITS 114,733,000

CESS56,871,362

PLOT RENTS 6,600,000

ADMINISTRATIVE SERVICES FEES 6,974,007

VARIOUS FEES 16,060,000

COUNTY'S NATURAL RESOURCES EXPLOITATION 10,605,000

SALES OF COUNTY ASSETS 240,000

COUNTY PREMISES & ASSETS RENTING / HIRING 1,038,500

LEASE / RENTAL OF COUNTY'S INFRASTRUCTURE ASSETS 0

INTERESTS & REVENUES FROM FINANCIAL INVESTMENTS 11,300,000

INSURANCE CLAIMS RECOVERY 500,000

MEDIUM TERM LOANS (1-3 YR REPAYMENT) 0

LONG TERM LOANS (OVER 3 YR RPAYMENT) 0

TRANSFERS FROM RESERVE FUNDS 0

DONATIONS 0

FUND RAISING EVENTS 0

SUB-COUNTY/MARKET CENTRE FEES 17,042,560

VEHICLE PARKING FEES 97,131,887

HOUSING 32,166,720

SOCIAL PREMISES USE CHARGES 0

SCHOOL FEES2,000,000

OTHER EDUCATION-RELATED FEES 0

PUBLIC HEALTH SERVICES 3,000,000

PUBLIC HEALTH FACILITIES OPERATIONS 28,910,000

ENVIRONMENT & CONSERVANCY ADMINISTRATION 30,000,000

SLAUGHTER HOUSES ADMINISTRATION 15,155,500

WATER SUPPLY ADMINISTRATION 0

SEWERAGE ADMINISTRATION 0

TECHNICAL SERVICES FEES 63,274,830

EXTERNAL SERVICES FEES 1,600,000

TOTAL RECEIPTS FROM LOCAL SOURCES 831,380,003

2.2.3ExpenditureTable 3: Recurrent Expenditures for the periods July 2013-June 2014S/NO.RECURRENT EXPENDITURE

DEPARTMENTSEstimatesExpendituresBalance

1. County Assembly563,390,967517,173,48546,217,482

2. Office of the Governor and Deputy Governor624,103,216520,473,296103,629,920

3. County Executive Committee33,211,21410,389,03022,822,184

4. County Public Service25,689,1683,523,08522,166,083

5. Finance345,289,730296,579,39548,710,335

6. Agriculture172,229,513156,611,63815,617,875

7. Environment & Natural Resources76,101,80451,584,17124,517,633

8. Education, Youth Affairs & Social Services192,936,62895,283,64597,652,983

9. Health Services614,178,573612,118,8812,059,692

10. Physical Planning & Development78,926,60460,129,00518,797,599

11. Public Works239,901,708188,969,11250,932,596

12. Trade40,278,56515,960,142 24,318,423

TOTAL EXPENDITURE RECURRENT3,006,237,6902,528,794,885477,442,805

Note: The balances indicated in the table 2 above were as a result of short fall in revenue collection (over-budgeting).

Table 4: Development Expenditures for the Periods July 2013-June 2014DEPARTMENTSEstimatesDEVELOPMENT EXPENDITURE

ExpenditureCommitmentsTotal Payments CommitmentBalance

1. County Assembly12,500,000012,500,00012,500,0000

2. Office of the Governor and Deputy Governor10,000,00005,000,0005,000,0005,000,000

3. County Executive Committee----0

4. County Public Service----0

5. Finance5,000,000005,000,0000

6. Agriculture60,000,0001,084,18458,915,81660,000,0000

7. Environment & Natural Resources140,000,00013,076,000126,924,000140,000,0000

8. Education, Youth Affairs & Social Services170,000,0000170,000,000170,000,0000

9. Health Services120,000,00027,707,07592,292,925120,000,0000

10. Physical Planning & Development13,800,000013,800,00013,800,0000

11. Public Works1,013,000,000158,762,695854,237,3051,013,000,0000

12. ICT & e-government80,000,0003,132,00076,868,00080,000,0000

13. Trade ----0

TOTAL EXPENDITURE 1,624,300,000203,761,9541,410,538,0461,619,300,000 5,000,000

The development expenditure was on various development projects across the county.

3.0RECENT ECONOMIC DEVELOPMENTS AND OUTLOOK3.1RECENT ECONOMIC DEVELOPMENTS Global and national economic events have a direct bearing on the countys economic performance. The world trade volume expanded in the first and second quarter of 2014 which saw Kenyas exports register significant growth during the period. Similarly, the national economy posted an enhanced growth of 4.6 percent in 2013 and it impacted positively on the countys economy as well. In the first three quarters of 2013 the economy expanded by 4.6 percent on average compared to 4.4 percent in the same period in 2012. This growth was mainly attributed to expansions in building and construction, mining and quarrying, wholesale and retail, manufacturing, transport and communication, financial intermediation, agriculture and forestry sectors.

In the same period, the Uasin Gishu Countys economy experienced similar growth largely driven by increased investments in growth potential areas of agriculture, education; health services and physical infrastructure due to increased inflows from national government to support devolved functions. In addition, expansion of trade in the county as a result of favorable policies put in place by the county government also contributed to this growth. Further, investments in the construction industry remained robust during the period against a background of stable interest rates coupled with ongoing county government infrastructural projects and private sectors resilient participation in the real estate development.

3.2MACROECONOMIC OUTLOOK AND POLICIESThe macroeconomic stability witnessed in 2013 spilled into the first quarter of 2014. This macroeconomic stability experienced during the period under review was supported by a projected stable low inflation, moderate interest rates and stable exchange rate which created a conducive environment for improved economic growth. Inflation declined from double digits in 2011 towards 5 percent in the recent months under review. On average, annual inflation declined to 5.7 percent in December 2013. In line with the decline in inflation short-term interest rates also eased in the same period. In addition, the shilling exchange rate stabilized against major currencies during the period.

However, the county economy still faced a number of internal and external risks during the period under review. Poor rainfall experienced in the county during the first and second quarters of 2014 which coincided with the planting season almost dampened the agricultural sector growth. Domestic oil prices have been on an upward trend since January 2014 despite global prices easing downwards. The high fuel prices experienced during the period and delays in distribution of fertilizers by NCPB also affected investments in agriculture. Furthermore, the insufficient rains experienced in early 2014 within the water catchment regions for hydro-power generation led to countrys dependent on thermal power generation which pushed up the cost of energy and consequently the cost of production and doing business. Insecurity concerns remained a key obstacle to the tourism industry over the period which led to underperformance of the sector. In conclusion, the county government during the period remained committed to implementing policies as set out in the CIDP.

3.3GROWTH PROSPECTS (REVENUE OUTLOOK)Over the period, the county government instituted measures to expand revenue base and eliminate revenue collection leakages. In addition, A.I.A from devolved functions and the automation of revenue collection was expected to enhance the revenue yield. Further, institutionalization of public financial management systems was anticipated to form a basis for sustained growth.

However, during the period, the county government managed to collect Kshs. 665,374,166.14, a shortfall of 20 percent against a target of kshs. 831,380,003 budgeted.

Table 5: Revenue outlookRevenue Type2013/14 EstimatesProjected Estimates

2014/2015Estimates2015/2016Estimates2016/2017Estimates

Local Revenue665,374,166.141,193,421,6291,217,290,0621,278,154,565

Central Government Transfer 3,796,628,687 4,419,574,9664,507,966,4654,733,364,789

Total 4,462,002,853.145,612,996,5955,725,256,5276,011,519,354

Table 6: Local Revenue Outlook by Revenue StreamLOCAL REVENUES:

COST CENTREACCOUNT DESCRIPTIONEstimated ProjectionsEstimated ProjectionsEstimated Projections

2014/20152015/20162016/2017

1.0 PUBLIC SERVICE MANAGEMENT

Law courtCourt Fines12,000,0001224000012852000

2.0 FINANCE AND ECONOMIC PLANNING

Financial Management UnitAll Admin/ miscellaneous fees17,000,0001734000018207000

3.0 TRADE, COOPERATIVES AND TOURISM

Main Municipal MarketProduce Inspection Fee500,000510000535500

Eldoret West MarketMarket Entrance / Gate Fee 4,000,00040800004284000

Wholesale MarketMarket Stalls Rent8,400,00085680008996400

Kimumu MarketMarket Entrance / Gate Fee 350,000357000374850

Kahoya MarketMarket Entrance / Gate Fee 150,000153000160650

Main Bus ParkEnclosed Bus Park Fee60,000,0006120000064260000

Open Air Market FeeLivestock Auction/Sales Fees 10,000,0001020000010710000

Hawkers Market & Sub-County Markets8,000,00081600008568000

Business Permit Management UnitBusiness Permits Current Year & Penalties200,000,000204000000214200000

Drilling calibration5,000,00051000005355000

Cooperative societies Audit and supervisionCooperative societies Audit and supervision1,000,00010200001071000

4.0 ROADS

Sosiani Matatu ParkEnclosed Bus Park Fee30,000,0003060000032130000

Street ParkingStreet Parking Fee & Clamping Fee108,000,000110160000115668000

Engineering & Urban Planning Management UnitRight-of-Way / Way-Leave Fee (KPLN, Telkom, etc.)4,000,00040800004284000

Engineering & Urban Planning Management UnitSign Boards & Advertisement Fee100,000,000102000000107100000

Fire-Fighting & Ambulance Management UnitFire-Fighting Services25,000,0002550000026775000

5.0 LANDS HOUSING AND PHYSICAL PLANNING

Land Rates Management UnitLand Rates Current Year & Penalties290,246,919296051857.4310854450.2

Housing Management UnitHousing Estates Monthly Rent 65,000,0006630000069615000

Engineering & Urban Planning Management UnitBuildings Plan Approval Fee25,000,0002550000026775000

Engineering & Urban Planning Management UnitBuildings Inspection Fee15,000,0001530000016065000

6.0 EDUCATION, CULTURE AND SOCIAL SERVICES

Education Management UnitCouncil Premises Occasional Hire (Offices, etc.)50,0005100053550

Uasin Gishu Assessment centreNursery Schools Fee900,000918000963900

7.0 HEALTH SERVICES

Epidemic Control & Inspection UnitInnoculation Fee3,000,00030600003213000

Epidemic Control & Inspection UnitMedical Examination3,000,00030600003213000

Cemetery UnitBurial Fees2,000,00020400002142000

Pest Control UnitFood Quality Inspection Fee10,750,0001096500011513250

County Health FacilitiesHealth Centres Services Fee23,000,0002346000024633000

8.0 ENVIRONMENT, WATER AND NATURAL RESOURCES

Refuse Collection UnitRefuse Collection Fee35,000,0003570000037485000

EnvironmentLease of water (Eldowas)46,000,0004692000049266000

9.0 AGRICULTURE, FISHERIES AND LIVESTOCK

Cess Management UnitWheat Maize, Milk and other Produce fees60,000,0006120000064260000

Slaughter House Management UnitSlaughtering Fee16,074,71016396204.217216014.41

Veterinary Services5,000,00051000005355000

TOTAL LOCAL REVENUE1,193,421,6291,217,290,0621,278,154,565

3.4MEDIUM TERM FISCAL FRAMEWORKThough the county government had laid most of its governance structure, there were significant challenges that hindered proper implementation of its budget denying the anticipated level of grass-root induced growth. It is also important to note that during the period under review, the county did not have any deficits in its budget. In its bid to exercise prudency in fiscal management during the period, the county treasury ensured there was prioritization of county public spending while cutting on non-essential spending. In addition, the focus was to modernize revenue collection through automation and opening new revenue streams. Borrowing was also pursued in line with the set laws and regulations to manage cash flow issues and expand infrastructure development.

Going forward, on the expenditure front, the county Government will continue with rationalization of expenditure to improve efficiency and reduce overlaps and wastage. Expenditure management will be strengthened with implementation of the Integrated Financial Management Information System (IFMIS) and other appropriate financial management systems across all departments. In addition, the PFM Act, 2012 is expected to accelerate reforms in expenditure management system at the county. Further, adoption of Programme Based Budgeting in the budgeting process by the county Government will allow tracking of implementation of projects and programmes. Further, the revenue collection performance will be underpinned by ongoing efforts to revamp revenue collection. These efforts include: automation of revenue collection; allocation of more funds for valuation roll to determine rates; spatial planning to map out economic activities with the intention of raising more resources; classification of urban areas with intent to raise revenue through parking charges and bus parks; and intensification and expansion of revenue streams. In addition to the proposed Finance Bill 2014, the County Government is reviewing all other tax and Cess policies in order to simplify and modernize them.

4.0RESOURCE ALLOCATION FRAMEWORK4.1EXPENDITURE JUSTIFICATIONSFuture resource allocation and utilization over the medium term will be guided by the emerging priorities, county plans and the principles of PFM Act to ensure effective utilization of public finances. It is also important to note that sector allocations are informed by the county goals and people's aspirations as captured in the County Integrated Development Plan (CIDP).

Whereas expenditure cuts are targeted on the one-off expenditures that do not require additional expenditure for the subsequent financial years, expenditure increments are informed by core needs identified through analysis by fiscal experts in the County as well as from insightful and welcome submissions from the county public and submissions by individuals and organizations on the 2014/15 budget proposals.

4.2FISCAL RISKS TO THE OUTPUTHowever, these prospects will be constrained by certain risks both in the short and medium term. The risks to the 2014/15 financial years budget include challenges in revenue performance as the county continues to put structures in place, seal loop holes and expand the revenue base. The current process of county restructuring and rationalization of staff is expected to exert pressure on wage expenditures. With commitment in improving infrastructure within the county, the share of resources going to priority physical infrastructure sector, such as roads and water will rise over the medium term.

In addition, systemic risks such as high fuel prices, high food prices, eroding Kenya shilling against major currencies and inflation will pose a major challenge to growth as it will constrain consumption and productivity. Other risks that need to be addressed include declining agricultural productivity, insecurity, wage bill pressures and transition challenges.

4.3EXPENDITURE DRIVERSCounty development initiatives to be implemented in the coming Fiscal Years are contained in the CIDP whose development proposals were identified by the residents of Uasin Gishu County through a consultative process. All the sectors in the county had priority programmes identified. These proposed programmes will drive expenditures for the five Fiscal Years. These key expenditure drivers in the respective sectors include: Health Sector: Improvement and upgrading of health facilities; service delivery enhancement; and supply of requisite drugs and equipments.Agriculture Sector: Cash crops development, productivity and technology adoption, fruits and vegetables enhancement, promotion and support of fish farming, livestock production enhancement initiatives, value addition and marketing, and value chain linkages.Education Sector: ECDE strategy, schools infrastructural enhancement, vocational and tertiary training strategy and quality enhancement in educational institutions; sports activities initiatives and cultural promotion.Infrastructure Sector: roads construction and improvement, public works quality assurance and street lighting.ICT and e-government Sector: Management Information Systems (MIS) and ICT in public institutions and communities.Environment Sector: Improvement of water supply infrastructure, water management systems and waste disposal systems. Others are environmental conservation strategies and other natural resources management and harnessing systems, and electricity connections to public institutions.Trade Sector: Trade promotion and marketing strategies; Tourism marketing strategies; Enterprise creation, incubation and commercialization; value addition.Lands, Housing and Physical Planning: County Spatial Planning; Local development planning; Housing Development.

5.0 CONCLUSIONThe fiscal outlook presented herein will seek to achieve the objectives outlined in the PFM Act and lay ground for the next financial year in terms of preparing the CBROP and CFSP. Fiscal discipline will be important in ensuring proper management of funds and delivery of expected output, outcome and impacts. Effective and efficient utilization of funds especially on capacity building on different sectors of the county will be crucial in ensuring that the county gets to deliver on its functions.

ANNEX 1: RECURRENT EXPENDITURE

TITLE AND DETAILSEstimatesExpendituresBalance

COUNTY ASSEMBLY

Personal Emoluments (PE)160,759,619160,463,640295,979

Operations & Maintenance (OM)402,631,348356,709,84545,921,503

TOTAL563,390,967517,173,48546,217,482

OFFICE OF THE GOVERNOR AND DEPUTY GOVERNOR -

Personal Emoluments (PE)336,822,908328,823,9207,998,988


TOTAL624,103,216520,473,296103,629,920

-

County Executive Committee -



TOTAL33,211,21410,389,03022,822,184

County Public Service -



TOTAL25,689,1683,523,08522,166,083

FINANCE -



TOTAL345,289,730296,576,39548,710,335

AGRICULTURE -



TOTAL172,229,513156,611,63815,617,875

ENVIRONMENT & NATURAL RESOURCES -



TOTAL76,101,80451,584,17124,517,633

EDUCATION, YOUTH AFFAIRS & SOCIAL SERVICES -



TOTAL192,936,62895,283,64597,652,983

HEALTH SERVICES -

Personal Emoluments (PE)569,235,766568,372,706863,060


TOTAL614,178,573612,118,8812,059,692

PHYSICAL PLANNING & DEVT -



TOTAL78,926,60460,129,00518,797,599

PUBLIC WORKS -



TOTAL239,901,708188,969,11250,932,596

TRADE -

Personal Emoluments (PE)16,292,5658,281,326 8,011,239

Operations & Maintenance (OM)23,986,0007,678,816 16,307,184

TOTAL40,278,56515,960,142 24,318,423

TOTAL EXPENDITURE RECURRENT3,006,237,6902,528,794,885477,442,805

DEVELOPMENT EXPENDITURE

TOTAL EXPENDITURE DEVELOPMENT 1,624,300,000203,769,5541,420,530,440

TOTAL EXPENDITURES (REC+DEV)4,630,537,6902,732,564,4391,897,973,251

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2014/2015 County Budget Review Outlook Paper