Missing revenue targets return to haunt Busia county

The National Treasury has proposed to cut at least Sh500 million from the Busia county’s total allocation for the 2019/20 financial year due to failure to meet revenue target.

Governor Sospeter Ojaamong (pictured) said the county will suffer the cut as it did not meet its revenue target for the 2017/2018 financial year.

In the year under review, the county was given Sh475 million target, but managed to rake in Sh177 million.

“When we were making our Annual Development Plan, we never anticipated that our allocation from the national government would be reduced,” said Mr Ojaamong.

This has forced the county to go back to the drawing board to amend the Fiscal Strategy Paper to reconcile with Annual Development Plan which MCAs had already adopted.

According to the Budget Committee Chairman Linus Asiba (Matayos South), reduction of the budget would have adverse effect to development in the region.

Our projection

“We shall have to reduce our projection on annual development and some projects will have to be forfeited,” said Mr Asiba

Ojaamong, together with Finance Executive Phaustine Barasa and her Chief Officer Priscah Omoit, met members of County Assembly last week.

Their discussion centred on how the deficit in the next financial year would be bridged without causing a crisis.

The county is currently in the middle of budget-making process and MCAs will today start presenting their proposals to the executive on priority areas.

“We have agreed on how we will address the deficit that came about as a result of budget cut,” said Ojaamong.  

To avoid further cuts in future, county has launched automated revenue collection system.

The governor is optimistic that the new system will bear fruit as all loopholes had been sealed.