CRA Recommendation on Vertical Share 2014-2015 Presentation

8/13/2019 CRA Recommendation on Vertical Share 2014-2015 Presentation

1/15

COMMISSION ON REVENUE ALLOCATION

RECOMMENDATIONS ON SHARING OF REVENUE

RAISED NATIONALLY BETWEEN THE NATIONALAND COUNTY GOVERNMENTS FOR THE

FINANCIAL YEAR 2014/2015

1


2/15

PRESENTATION OUTLINE


1. LEGAL FRAMEWORK FOR REVENUE SHARING

2. FUNCTIONAL ASSIGNMENT FOR NATIONAL AND COUNTY

GOVERNMENTS

3. THE COST OF DEVOLVED FUNCTIONS

4. SHAREABLE REVENUE

5. NON-SHAREABLE REVENUE

6. RECOMMENDATION

2


3/15


LEGAL FRAMEWORK FOR REVENUE SHARING

The Commission on Revenue Allocation is

mandated to make recommendations forequitable sharing of revenue raised by the

national government between the national

and county governments.

3


4/15


5/15

re


THE COST OF DEVOLVED FUNCTIONS

Historical Approach

Analysis of ministry budgets FY 2012/13 to

2014/15.

Add Remuneration and Administrative Cost for

County Assembly

County Executive

5


6/15

LOANS AND GRANTS COUNCIL

CRA recommends the formation of loans and grants council.

Functions:

1) Ensure transparency in the exercise of national / county borrowing;

2) Engender public participation and debate on matters pertaining tonational debt;

3) Ensure equity in sharing of the burdens and benefits from the use ofexternal resources both across counties and over generations;

4) Ensure that borrowing is done prudently and payments are prompt; and

5) Ensure that public debt is sustainable and encourage fiscal managementthat is geared towards self-reliance.


6

Cost of Devolved & Concurrent Functions (Kshs. Million)

NO. MINISTRY TOTALBudget

Allocationto

National %

Allocationto

Counties %

1 Health 92,495 20,700 22% 71,796 78%

2 Devolution and Planning 99,103 34,771 35% 64,332 65%

3 Agriculture Livestock & Fisheries 32,930 11,730 36% 21,201 64%

4 Lands , Housing & Urban Devt 32,918 15,697 48% 17,221 52%

5 Sports,Culture & the Arts 15,945 8,042 50% 7,903 50%

6Industrialization and EnterpriseDevt 7,024 4,902 70% 2,121 30%

7 Transport and Infrastracture 138,830 108,487 78% 30,342 22%


7/15



Functions:




4) Ensure that borrowing is done prudently and payments are prompt; and

5) Ensure that public debt is sustainable and encourage fiscal managementthat is geared towards self-reliance.


7

Cost of Devolved & Concurrent Functions (Kshs. Million)

NO. MINISTRY TOTAL

Budget

llocationto

National %

Allocationto

Counties %

8EAC Affairs, Commerce andTourism 7,964 6,285 79% 1,679 21%

9 ICT 8,628 6,883 80% 1,745 20%

10 Labour Soc. Securities & Serv. 2,944 2,403 82% 541 18%

11Environment, Water & Nat.Resources 67,449 58,279 86% 9,170 14%

12Education, Science &Technology 126,989 124,806 98% 2,183 2%

13 Energy and Petroleum 58,529 58,114 99% 415 1%

14 Interior & Co-ordination 100,967 100,722 100% 245 0%

TOTAL 792,714 561,822 71% 230,893 29%


8/15


Cost of New County Structures(2014/15)

8

CostKshs. Million

Remuneration for New County Staff 38,143

Administrative Cost of New County Structures 10,126

Total Allocation to Counties 48,269


9/15


Total Cost of Devolved Functions2014/15

9

(KSHS. MILLION)

Cost of Devolved Functions 230,893

Remuneration for New

County Staff 38,143

Administrative Cost of New

County Structures 10,126

Total Allocation to Counties 279,162


10/15



Functions:




4) Ensure that borrowing is done prudently and payments are prompt;and

5) Ensure that public debt is sustainable and encourage fiscalmanagement that is geared towards self-reliance.


10

SHAREABLE REVENUE(Kshs. Million)

PARTICULARS

FY 2011/12

(AUDITED &

APPROVED)

1 Income Tax from Individuals 166,036

2 Income Tax from Corporations 146,427

3 V.A.T: Import and Domestic 176,387

4 Excise Taxes 78,884

5 Customs Duties 51,712

6 Other Revenues 73,437

Total Shareable Revenue 682,141


11/15



Functions:







11

NON-SHAREABLE REVENUE(Kshs. Million)

PARTICULARSFY 2011/12

(Audited &

Approved)

1 Domestic lending-T/Bonds 134,682

2 Loans from Foreign Govt. through Exchequer 72,211

3 Development Recovery Over Issues 2008/09 & 2009/10 11,312

4 Grants from Foreign Govt. through Exchequer 7,765

5 Recurrent Recovery Over Issues 2008/09 & 2009/10 5,185

6 Contribution from Govt. Emp. To S.&W.S within Govt. 46

SUB TOTAL -NON SHAREABLE 231,201


12/15



Functions:






P


12

SHAREABLE REVENUE FY 2014/15COMPARATIVE ALLOCATIONS AS A PERCENTAGE OF REVENUE FOR YEARS

2011/12 TO 2014/15 IN KSHS. MILLIONS

FISCAL YEARS

2011/12

Actual%

2012/13

Actual%

2013/14

Estimate%

2014/15

Estimate%

Total Shareable

Revenue682,141 100 776,856 100 863,000 100 998,000 100

Allocation to

the National

Government

399,568 58.6 494,283 63.6 580,427 67.3 715,427 71.7

Allocation to

Counties(2014/15)

279,162 40.9 279,162 35.9 279,162 32.3 279,162 28

Equalisation

Fund3,411 0.5 3,411 0.5 3,411 0.4 3,411 0.3


13/15

P


13

RECOMMENDATION FORFINANCIAL YEAR 2014/15

Vertical Share to National and County Governments Based on

Shareable revenue of 2011/12

Kshs. Million

Percentage

Share to National Government 399,568 58.58

Share to County Governments 279,162 40.92

Equalisation Fund 3,411 0.50Total Shareable Revenue 682,141 100


14/15

P

14

COMPARATIVE SHARE OF REVENUE DURING ACTUALYEAR OF EXPENDITURE

2013-2014 2014-2015

Kshs. Million Kshs. Million

SHAREABLE REVENUE 863,000 998,000

ALLOACATED TO COUNTIES 210,000 279,162

EQUALISATION FUND 3,411 3,411

BALANCE TO NATIONAL 649,589 715,427PERCENTAGE SHARES

NATIONAL 75.3% 71.7%

COUNTIES 24.3% 28.0%

EQUALISATION FUND 0.4% 0.3%



15/15

reThank you

THANK YOU


CRA Recommendation on Vertical Share 2014-2015 Presentation

Documents

Transcript of CRA Recommendation on Vertical Share 2014-2015 Presentation