The government has moved to enforce a deadline on the passage of Finance Bills by the counties to plug a loophole that has seen the devolved units miss out on revenue.
A State-backed amendment to the Public Finance Management Act, if adopted by Parliament will insert a new clause into the law that will compel the 47 county assemblies to pass Finance Bills by June 30 every year.
The deadline is meant to allow counties to collect levies and fees at the new rates set in their Finance Acts and ensure that they do not miss out on revenue.
Currently, the county assemblies do not have a deadline on when to pass their Finance Bills, with some passing the them six months after the beginning of the financial year.
This denies the county governments revenues given that they cannot backdate fees and levies in case of higher rates in their Finance Acts.
Also Unease as Treasury delays sending funds to counties Senators have raised the alarm over the delay to disburse money to county governments.
Reality check: Government to reduce budget by Sh350bn Experts warn State may have to cut spending unless it goes big on taxation.Its free!
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