A clash is looming between the Senate and National Treasury over resources devolved to counties after a House committee circumvented the 2019 Budget Policy Statement (BPS) and proposed an increment to the allocation by a further Sh20 billion.
The Senate committee on finance and budget sidestepped an approval by the Treasury to give the devolved units more money in the 2019/20 budget.
In its recommendations, the committee seeks to amend the Division of Revenue Bill 2019 tabled in the House two weeks ago, to make the total revenue due to the counties to Sh391 billion from the Sh371 billion projected earlier.
“This is similar to the proposals by the Commission on Revenue Allocation (CRA) and the council of governors,” the report tabled in house reads in part.
The CRA recommendation is based on altering the current base of Sh314 billion by an actual three-year average of annual inflation factor of 6.9 per cent.
“There are inconsistencies in computing the proposed allocation between CRA and National Treasury,” the report further states.
The Senator Mohammed Mahamud led committee, appealed that the equitable share for 2018/19 financial year should be adjusted by a three-year inflation rate of 6.9 percent which is Sh21.67 billion.