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ELECTION 2022

Work out fair share formula

EDITORIAL
By The Standard | Feb 5th 2016 | 1 min read

Revenue allocation will continue to be a bone of contention between the national and county governments.

This calls for enhanced consultation between the Senate and the Commission for Revenue Allocation to unlock a long-standing dispute on how revenue should be shared among counties.

The parameters so far have been population, land area, basic equal share, poverty index and fiscal responsibility in revenue distribution.

While two new parameters have been proposed based on development and personnel emolument, the Senate wants another incentive to be introduced that will make counties increase their revenue collection.

This, however, has been rejected by governors who argue they operate under different circumstances that may disadvantage others.

The Senate is expected to deliberate on a compromise formula when the House resumes business next week.

If the impasse is not resolved as soon as possible, the implication is that counties will continue to rely on the current formula, whose three-year term is ending in March.

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