Ruto assents to Division of Revenue Bill, 2023
Business
By
David Njaaga
| Apr 27, 2023
President William Ruto has assented to the Division of Revenue Bill, 2023, which allocates Sh2.2 trillion to the National Government for the Financial Year 2023/24.
The bill, published by Budget and Appropriations Committee Chairman Ndindi Nyoro on March 20, 2023, was passed by the National Assembly, and subsequently approved by the Senate as required by the Constitution.
In the breakdown, counties have been allocated Sh385.4 billion for the same period.
The allocation to county governments represents a 4.2 per cent increase from the Sh370 billion allocated in the previous fiscal year, 2022-23.
In addition, counties will receive an extra Sh11.1 billion in conditional and unconditional allocations from the National government's share of revenue, as well as an additional Sh33.2 billion from the proceeds of loans and grants to county governments.
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Meanwhile, the National government has been allocated Sh2.2 trillion, which will be used to stimulate and sustain economic activity, mitigate the adverse impact on the economy, and reposition it on a sustainable and inclusive growth trajectory.
The government estimates that revenue collection for the 2023-2024 Financial Year will be Sh2.6 trillion, even as it hopes to grow the economy by six (6) per cent in 2023 compared to the 5.5 per cent growth in 2022.
"The effects of the Covid-19 pandemic are still lingering, the war in Ukraine has contributed to the increase in prices of commodities such as fuel and foodstuffs. The persistent drought experienced in most parts of the country has also led to a decrease in agricultural productivity, leading to an increase in the cost of living," the Division of Revenue Bill, 2023 brief reads in part.
"All these, together with global inflation and related increased interest rates, have contributed to a substantial decrease in collections of the projected revenues. However, ordinary revenue collection as a share of GDP is expected to increase from the preliminary actual of 15.0 per cent in 2021-22 FY and projected to 15.1 per cent in FY 2022-23 and 15.8 per cent in 2023-24."