(4) The County Executive Committee member for finance shall prepare and present his or her comments on the budget estimates presented by the county assembly clerk. (5) The County Executive Committee member for finance shall ensure that the budget process is conducted in a manner and within a timeframe sufficient to permit the participants in the process to meet the requirements of the The Public Finance Management Act, 2012 130 Constitution and this Act. (6) As soon as is practicable after the budget estimates and other documents have been submitted to the County Assembly under this section, the County Executive Committee member for finance shall publish and publicise the documents.

(7) Upon approval of the budget estimates by the county assembly, the County Executive Committee member for finance shall prepare and submit a County Appropriation Bill to the county assembly of the approved estimates. County Executive Committee member for finance to submit budget documents to county assembly. 130. (1) The County Executive Committee member for finance shall submit to the county assembly the following documents in respect of the budget for every financial year— (a) a budget summary that includes— (i) a summary of budget policies including revenue, expenditure, debt and deficit financing; and (ii) an explanation of how the budget relates to the fiscal responsibility principles and the financial objectives; (iii) a memorandum by the County Executive Committee member for finance explaining how the resolutions adopted by the county assembly on the budget estimates have been taken into account; (b) budget estimates that include— (i) a list of all county government entities that are to receive funds appropriated from the budget of the county government; (ii) estimates of revenue projected from the Equalisation Fund over the medium term; (iii) all revenue allocations from the national government over the medium term, including conditional and unconditional grants; The Public Finance Management Act, 2012 131 (iv) all other estimated revenue by broad economic classification; (v) all estimated expenditure, by Vote, and by programme, clearly identifying both recurrent and development expenditures; (vi) information regarding loans made to the county government, including an estimate of principal, interest and other charges to be paid by that county government in the financial year in respect of those loans; (c) information relating to any payments and liabilities to be made or incurred by the county government for which an appropriation is not included in an Appropriation Act, together with the constitutional or national legislative authority for any such payments or liabilities; and (d) a statement by the County Executive Committee member for finance specifying the measures taken by the county government to implement any recommendations made by the county assembly with respect to the budget for the previous financial year.

(2) In preparing the annual Appropriation Bill to put before the County Assembly, the County Executive Committee member for finance shall ensure that the expenditure appropriations in the Bill are in a form that— (a) is accurate, precise, informative and pertinent to budget issues; and (b) clearly identifies the appropriations by Vote and programme. County Assembly to consider budget estimates. 131. (1) The county assembly shall consider the county government budget estimates with a view to approving them, with or without amendments, in time for the relevant appropriation law and any other laws required to implement the budget to be passed by the 30th June in each year.

(2) Before the county assembly considers the estimates of revenue and expenditure, the relevant committee of the county assembly shall discuss and review the estimates and make recommendations to the county assembly, and in finalising the recommendations to county assembly, the committee shall take into account the views of the County The Public Finance Management Act, 2012 132 Executive Committee member for finance and the public on the proposed recommendations. (3) An amendment to the budget estimates may be made by the county assembly only if it is in accordance with the resolutions adopted regarding the County Fiscal Strategy Paper and if— (a) any increase in expenditure in a proposed appropriation, is balanced by a reduction in expenditure in another proposed appropriation; and (b) any proposed reduction in expenditure is used to reduce the deficit.

(4) Where a Bill originating from a member of a county assembly proposes amendments after the passing of budget estimates and the Appropriations Bill by the county assembly, the county assembly may proceed in accordance with the resolutions adopted regarding the County Fiscal Strategy Paper and ensure— (a) an increase in expenditure in a proposed appropriation is balanced by a reduction in expenditure in another proposed appropriation; or (b) a proposed reduction in expenditure is used to reduce the deficit. (5) Not later than twenty-one days after the county assembly has approved the budget estimates, the County Treasury shall consolidate the estimates and publish and publicise them.

(6) The County Executive Committee member for finance shall take all reasonably practicable steps to ensure that the approved budget estimates are prepared and published in a form that is clear and easily understood by, and readily accessible to, members of the public. Submission and consideration of the revenue raising measures in the county assembly. 132. (1) Each financial year, the County Executive member for finance shall, with the approval of the County Executive Committee, make a pronouncement of the revenue raising measures for the county government.

(2) The County Executive Committee member for finance shall, on the same date that the revenue raising measures are pronounced, submit to the county assembly the County The Public Finance Management Act, 2012 133 Finance Bill, setting out the revenue raising measures for the county government, together with a policy statement expounding on those measures. (3) Any recommendations made by the relevant committee or adopted by the county assembly on revenue matters shall – (a) ensure that the total amount of revenue raised is consistent with the approved fiscal framework and the County Allocation of Revenue Act; (b) take into account the principles of equity, certainty and ease of collection; (c) consider the impact of the proposed changes on the composition of tax revenue with reference to direct and indirect taxes; (d) consider domestic, regional and international tax trends; (e) consider the impact on development, investment, employment and economic growth; and (f) take into account the taxation and other tariff agreements and obligations that Kenya has ratified, including taxation and tariff agreements under the East African Community Treaty.

(4) The recommendation of the County Executive Committee member for finance shall be included in a report and tabled in the county assembly. Approval of the Finance Bill 133. Not later than ninety days after passing the Appropriation Bill, the county assembly shall consider and approve the Finance Bill with or without amendments. Action to be taken in case of delay in enacting County Appropriation Bill. 134. (1) Subject to subsection (2), if the County Appropriation Bill for a financial year has not been assented to, or is not likely to be assented to by the beginning of that financial year, a county assembly may authorise the withdrawal of money from the County Revenue Fund.

(2) Money withdrawn under subsection (1)— (a) may be used only for the purpose of meeting expenditure necessary to carry on the services of the county government during the financial year concerned until such time as the relevant appropriation law is passed; and (b) may not exceed, in total, one-half of the amount The Public Finance Management Act, 2012 134 included in the estimates of expenditure submitted to the county assembly for that year. (3) The Speaker of the county assembly shall, within seven days, communicate the authorisation in subsection (1) to the County Executive Committee member for finance.

(4) The money withdrawn under subsection (1) shall be included in the appropriation law, under separate votes, for the services for which it is withdrawn. County government to submit to county assembly supplementary budget in certain circumstances. 135. (1) A county government may spend money that has not been appropriated if the amount appropriated for any purpose under the County Appropriation Act is insufficient or a need has arisen for expenditure for a purpose for which no amount has been appropriated by that Act, or money has been withdrawn from the county government Emergency Fund.