HomeNewsPoliticsGovenors now free to determine Sh17.4bn utilization

Govenors now free to determine Sh17.4bn utilization

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Financial system

Govenors now free to determine Sh17.4bn utilization


Yatani

Nationwide Treasury Cupboard Secretary Ukur Yatani. FILE PHOTO | NMG

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Abstract

  • The Treasury will drop restrictions on use of Sh17.4 billion for healthcare, roads and schooling sectors in counties, permitting governors to make use of the money on expenditures of their alternative together with for salaries and perks.
  • Finance Cupboard Secretary Ukur Yatani stated for the reason that nationwide authorities has to bear the burden when there’s shortfalls in revenues with out reducing transfers to counties it’s going to use conditional grants to make up for the shortfalls.
  • Counties are entitled to an equitable share of revenues plus discretionary funds from the nationwide authorities particularly earmarked for sure initiatives

The Treasury will drop restrictions on use of Sh17.4 billion for healthcare, roads and schooling sectors in counties, permitting governors to make use of the money on expenditures of their alternative together with for salaries and perks.

Finance Cupboard Secretary Ukur Yatani stated for the reason that nationwide authorities has to bear the burden when there’s shortfalls in revenues with out reducing transfers to counties it’s going to use conditional grants to make up for the shortfalls.

Counties are entitled to an equitable share of revenues plus discretionary funds from the nationwide authorities particularly earmarked for sure initiatives

“If the precise income raised nationally within the monetary 12 months falls wanting the anticipated income, the shortfall shall be borne by the nationwide authorities, whereas county allocations should be disbursed in full,” Mr Yatani says within the price range coverage draft for the 12 months beginning July.

“We suggest to allocate to County Governments Sh370 billion as their equitable income share arrived at by changing 4 current conditional grants to county governments into unconditional grants, and allocating the respective quantities totalling Sh17.4 billion in direction of the Counties,” CS Yatani stated.

The CS stated the conversion of the 4 conditional grants as proposed has a number of benefits as it’s going to give counties freedom to plan to be used of their funds on want foundation.

Treasury Secretary Ukur Yatani says that the change will allow the 47 devolved items to enhance absorption of funds.



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88E70B70D1Aa46A497A524Eca9E5C16A?S=96&D=Mm&R=G Govenors Now Free To Determine Sh17.4Bn Utilization
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