22. (1) Not later than two months after a payment from the Contingencies Fund in terms of section 21, the Cabinet Secretary shall submit to Parliament a detailed report in respect of the payment setting out the information specified in section 23(2) and seek Parliament to approve the payment. (2) If Parliament does not sit during the period referred to in The Public Finance Management Act, 2012 49 subsection (1), or is not sitting at the end of that period and the Cabinet Secretary has not sought the approval of Parliament before the end of that period, the Cabinet Secretary shall seek the approval for the payment not later than fourteen days after Parliament next sits.

(3) As soon as practicable after the Parliament has approved the payment, the Cabinet Secretary shall cause an appropriation Bill to be introduced in Parliament for the appropriation of the money paid and for the replenishment of the Contingencies Fund to the extent of the amount of the payment. Financial statements in respect of the Contingencies Fund. 23. (1) Not later than three months after the end of each financial year, the National Treasury shall prepare and submit to the Auditor-General financial statements for that year in respect of the Contingencies Fund.

(2) The National Treasury shall include the following information in the financial statements submitted under subsection (1) — (a) the date and amount of each payment made from that Contingencies Fund; (b) the person to whom the payment was made; (c) the purpose for which the payment was made; (d) if the person to whom the payment was made has spent the money for that purpose, a statement to that effect; (e) if the person to whom the payment was made has not yet spent the money for that purpose, a statement specifying the reasons for not having done so; and (f) a statement indicating how the payment conforms to section 21. The Public Finance Management Act, 2012 50 Establishment of Parliamentary Fund and other national government public funds.

24. (1) There is established a fund to be known as the Parliamentary Fund. (2) The Secretary to the Parliamentary Service Commission shall, on the directions of the Commission, open and operate such bank accounts as may be necessary for the purposes of the Parliamentary Fund. (3) Notwithstanding any other provisions of this Act, where a Fund is established under any other law for the purposes of Parliament or a House of Parliament, the Parliamentary Service Commission shall— (a) establish procedures and systems for proper and effective management of the monies and property of the Fund; (b) establish accounting procedures and systems for the Commission to properly account for the monies and property; (c) superintend the expenditure of the monies of the Fund to ensure that the monies are properly accounted for; (d) prepare and submit accounts for each financial year in accordance with the written law for the time being relating to audit for audit by the Auditor-General; and (e) ensure that accounts prepared under paragraph (d) comply with the provisions of this Act.

(4) The Cabinet Secretary may establish a national government public fund with the approval of the National Assembly. (5) The Cabinet Secretary shall designate a person to administer every national public fund established under subsection (4). (6) The administrator of a national public fund shall ensure that the earnings of, or accruals to a national public fund are retained in the fund unless the Cabinet Secretary directs otherwise. The Public Finance Management Act, 2012 51 (7) The administrator of a national public fund shall ensure that money held in the fund, including any earnings or accruals referred to in subsection (6), is spent only for the purposes for which the fund is established.

(8) The Cabinet Secretary may wind up a national public fund with the approval of the National Assembly. (9) On the winding up of a national public fund— (a) the administrator of the national public fund shall pay any amount remaining in the fund into the National Exchequer Account for the credit of the national government; or (b) the Cabinet Secretary shall pay any deficit in the fund from funds of the national government in the National Exchequer Account with the approval of the National Assembly; and (c) the Cabinet Secretary shall submit a final statement of accounts to Parliament.

(10) The administrator of a national public fund— (a) shall prepare financial statements for the fund for each financial year in a form specified by the Accounting Standards Board; and (b) not later than three months after the end of each financial year, submit those statements to the Auditor-General and deliver a copy of the statements to the National Treasury, Commission on Revenue Allocation and the Controller of Budget. (11) The regulations shall provide for the establishment, management, operation or winding-up of national public funds.

(12) This section applies to all other national public funds including funds earmarked for specific purposes established by an Act of Parliament but does not apply to a public fund established by the Constitution. (13) In this section— “administrator”, in relation to a national public fund, means a person designated by the Cabinet Secretary under sub-section (5) to administer the fund; and “national public fund” means a public fund established under subsection (4). The Public Finance Management Act, 2012 52 Responsibilities of the National Treasury with respect to the Budget process. National Treasury to prepare annual Budget Policy Statement.

25. (1) The National Treasury shall prepare and submit to Cabinet the Budget Policy Statement for approval. (2) The National Treasury shall submit the Budget Policy Statement approved in terms of subsection (1) to Parliament, by the 15th February in each year. (3) In preparing the Budget Policy Statement, the National Treasury shall set out the broad strategic priorities and policy goals that will guide the national government and county governments in preparing their budgets both for the following financial year and over the medium term.

(4) The National Treasury shall include in the Budget Policy Statement— (a) an assessment of the current state of the economy and the financial outlook over the medium term, including macro-economic forecasts; (b) the financial outlook with respect to Government revenues, expenditures and borrowing for the next financial year and over the medium term; (c) the proposed expenditure limits for the national government, including those of Parliament and the Judiciary and indicative transfers to county governments; and (d) the fiscal responsibility principles and financial objectives over the medium term including limits on total annual debt.