Concern over delayed county budgets

By Abdikadir Sugow

As Governors scramble to implement devolution, some counties are yet to submit their budgets and Appropriation Bills, jeopardising the roll out of development programmes at the grassroots.

Some of the 47 counties failed to meet the June 30 deadline to submit their annual budgets as stipulated by law and they now risk missing funds for their operations and development expenditure.

Controller of Budget Agnes Odhiambo warned counties on Monday, that failure to meet the budget deadline they would not get funds starting July 1.

It is mandatory for Governors to finalise their budgets before July 1 or risk losing their share of the Sh210 billion allocated for counties in the 2013-2014 financial year.

The budgets and Appropriation Bills are expected to be approved by the county assemblies.

The Public Finance Management Act, 2011 requires Governors to set priorities that guide the budget process and determine how the integrated development plan shapes the budget.

However, the Controller of Budget, said counties whose assemblies have approved appropriation Bills will receive 50 per cent of the funds.

“Counties where appropriation Bills have been approved by county assemblies and are awaiting their governors’ assent are entitled to 50 per cent of their annual budgets,” Ms Odhiambo clarified. This amount would however, go towards operations and recurrent expenditure, meaning that there would be nothing left for development programmes, since many counties have allocated less than 50 per cent for public service delivery due to finance and economic planning.

Among the hardest hit sectors in case of a budget crunch will be infrastructure and public works, environment, forestry and tourism, health, water services and sanitation, education, commerce, housing, agriculture, livestock, fisheries development and social welfare.

Defaulters

All these sectors have dockets managed by county executive committee (cabinet) members who will have no funds to administer and implement development programmes. Security, which is vital if development is to be attained, will also be seriously hampered by budget shortfalls.

The Controller of Budget is mandated by the Constitution to oversee the implementation of the budgets of national and county governments, authorising withdrawals from public funds, the Consolidated Fund, the County Revenue Fund and the Equalisation Fund.

Odhiambo pointed out: “Failure to meet the constitutional requirement and the statutory deadline the office shall not approve budgets which are in contravention of the law.”

This warning will not be sweet music to the ears of the counties whose assemblies have not approved the budgets and appropriation Bills.

County budget coordinators are still gathering information before the list of defaulters is released.

The Controller of Budget is also monitoring extravagance and outrageous budgetary allocation by counties on non-core activities, which have caused public outcry. She said a Bill will soon be tabled in Parliament to expand the mandate of her office to interrogate such allocations.

Commission on Revenue Allocation Chairman Micah Cheserem has also warned that any county whose budget does not meet the standard procedure will miss funds.