|Year of Publication||2015|
|Category||Budget & Fiscal Plans|
|Description||Fiscal Responsibility Principles in the Public Finance Management Law
The public finance management (PFM) act, 2012 sets out the following fiscal responsibility principles to ensure prudency and transparency in the management of public resources;
i. The county government's recurrent expenditures shall not exceed the county's government total revenue.
ii. Over the medium term, a minimum of thirty percent of the county government budget shall be allocated to the development expenditures.
iii. The County governments' expenditures on wages and benefits for its public officers shall not exceed a percentage of the county government's total revenue as prescribed by the executive member for finance in reglations and approved by county assembly.
iv. Over the medium term the government borrowing shall be used only for the purpose of financing development expenditures and not recurrent expenditure.
v. The county debt shall be maintained at sustainable level as approved by county assembly.
vi. The fiscal risks shall be maintained prudently; and vii. A reasonable degree of predictability with respect to the level of tax rates and tax bases shall be maintained taking into account any reforms that may be made in the future.
|Tags||e4e83e998f7560a6a57696ca8429336e, Counties / General|