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3Rd Quarter DOWNLOAD x THIRD QUARTER BUDGET IMPLEMENTATION REPORT 2018-2019 Baringo County As At 31-03- 2019 Department of Finance and Economic Planning Third Quarter Budget Implementation Report 2018-2019 Third Quarter Budget Implementation Report 2018-2019 Baringo County Office of the Governor, County Government of Baringo P.O. Box 53-30400 KABARNET Tel: 053-21077 Email: [email protected]/[email protected] Website: www.baringo.go.ke i Third Quarter Budget Implementation Report 2018-2019 Introduction This report forms part of the County Budget Implementation Review Reports. The report is prepared in accordance with Section 166, Sub-Section 4(a, b) of the Public Finance Management Act, 2012. This third quarter report provides elaborate information on financial and nonfinancial. It further analyses the key issues in the respective departments, challenges and probable solutions. This report was prepared after the preparation of the first supplementary budget by the county executive approval by the County Assembly. It highlights the progress made in budget implementation by each of the 10 departments. specifically, revenue and expenditure performance are analyzed and compared against targets contained in the Financial year 2018/19 Approved Budgets. Key challenges that faced budget implementation during the reporting period have been identified and appropriate recommendations to overcome the challenges made. The report presents the status of budget execution between 1st January to 31st March 2019 for internal consumption and performance appraisal. It also offers valuable information to members of the public on budget implementation and the County Assembly, which is bestowed, with the oversight mandate on utilization of public funds. Key Highlights During the preparation of the Supplementary budget the total County budget increased from Kshs 8.029 Billion to Kshs 8.155 due to increment in local revenue projection,from Ksh. 371,147,448.00 to 401,147,448.00. After reconciliation of the cash transfers for development projects, the figures were revised downwards from Kshs1,795,000,000 to Kshs1,622,061,611, while Roads Maintenance Fuel Levy fund balance for the year 2017/18 of Kshs33,653,742 was factored. Other funds that were factored in the Supplementary Budget wereKshs41,200,000 under Kenya Urban Support Prorgam as a balance brought down from FY 2017/2028; Kenya Devolution Support Program (KDSP) Grant of Kshs 173 Millionand Ksh20,718,749 to support Agricultural sector. In the budget estimates FY 2018/19 recurrent expenditure was estimated at Kshs 4.296 Billion, while development expenditure was estimated at Kshs 3.733 Billion. At the Supplementary budget estimates, recurrent expenditure was adjusted upwards to Kshs. 4.525 Billion while development was revised downwards to Kshs 3.629 Billion. The adjustments were necessitated due to increment in recurrent expenditures especially staff emoluments and operations and maintenance. Third Quarter Budget Implementation Report 2018-2019 Third Quarter Budget Implementation Report 2018-2019 Approved 1st Supplementary Budget for 2018/19 FY DEVELOPMENT RECURRENT Total Budget 8.155 billion 3.629 billion 4.525 billion County revenue increased by Ksh.125.657 million from Kshs 8,029,370,014 during the budget estimates 2018-2019 to Kshs 8,155,027,458 in the supplementary budget. This was aresult of positive trend and projection of the local revenue, that’s expected to increase to Kshs 401,147,448.00, up from Kshs.371,147,448.00. Roads Maintenance Fuel Levy brought down from the previous year was Kshs33,653,742 and Kshs 173,023,342. Grant under Kenya Devolution Support Program in the second Phase of funding. Agricultural Sector Development under ASDPS, received an increment of Kshs.20,718,749.00 and department of Lands Housing and Urban development under Kenya Urban Support Program-KUSP received its balance of FY 2017/2018 ofKsh. 41,200,000; ASDPS (Agricultural sector Development) Grant of Kshs Table 1. The County revenue are stated in the table below: BARINGO COUNTY REVENUE STREAMS 2018/2019 Source of Revenue Budget Estimates. 2018-2019 1st Supplementary 1 Equitable Share 5,086,800,000.00 5,086,800,000.00 2 Medical Equipment 200,000,000.00 200,000,000.00 3 Local Revenue 371,147,448.00 401,147,448.00 4 Roll Over -Projects 1,795,000,000.00 1,622,061,611.00 5 World Bank to County Health Facilities - - 6 Compensation for use fees forgone 13,191,000.00 13,191,000.00 7 Universal Care project 78,899,347.00 78,899,347.00 8 Roads Maintenance Fuel levy 133,931,014.00 133,931,014.00 Roads Maintenance Fuel levy - 33,653,742.00 9 KDSP Grant 43,729,455.00 43,729,455.00 10 Rehabilitation of Youth Polytechnics 35,605,000.00 35,605,000.00 11 EU grant for Devolution Advisory 85,000,000.00 85,000,000.00 12 DANIDA Grant 16,706,250.00 16,706,250.00 13 IDA World Bank (KUSP) 52,360,500.00 52,360,500.00 2 Third Quarter Budget Implementation Report 2018-2019 BARINGO COUNTY REVENUE STREAMS 2018/2019 Source of Revenue Budget Estimates. 2018-2019 1st Supplementary 14 IDA World Bank (KCSAP) 117,000,000.00 117,000,000.00 15 KDSP Grant Phase II 173,023,342.00 16 ASDPS (Agricultural sector Development) 20,718,749.00 17 KUSP (Balance 2017/2018) 41,200,000.00 Grand Total 8,029,370,014.00 8,155,027,458.00 1 Personnel Emoluments 3,223,382,814 3,223,382,814 2 Operations and Maintenance 1,302,198,874 1,302,198,874 Total Recurrent 4,525,581,688 4,525,581,688 3 Development 3,629,445,770 3,629,445,770.25 Grand Total 8,029,370,014 8,155,027,458 % - 1 PersonnelEmoluments 40% 40% 2 Operations and Maintenance 16% 16% 3 Development 45% 45% 102% 100% The County Treasury revenue receipts cumulatively was Kshs5,336,801,524 which was 65 per cent of the total revenues for the FY 2018-2019. During the quarter under review the County Treasury received a total of Kshs2,004,969,498 which was higher than Ksh1,059,348,962 from the previous quarter. Top on the list with 100 per cent of the County’s revenue receipts are Kenya Urban Support Program(KUSP) Grant: Roads Maintenance Fuel Levy (RMLF); Kenya Devolution Support (KDSP) Grant Kenya Climate Smart Agriculture Program (KCSAP) and Agriculture Sector Development Program (ASDP). EU grant for Devolution Advisory fund has a receipt of 86 per cent; Local revenues was at 67 per cent and Equitable share was at 59 per cent. Table 2. The table below tabulate the County’s revenue receipts over the three quarters that have been reviewed. Baringo County Government - County Revenue Receipts Revenue Sources Estimated 1st Quarter one Quarter Two Quarter Three Cumulative (% ) 2018/19 Supplementary Revenues Equitable Share 1,907,550,000 59% 5,086,800,000 5,086,800,000 254,340,000 813,888,000 2,975,778,00 0 Medical Equipment - - 0% 200,000,000 200,000,000 - - Local Revenue 79,881,897 67% 371,147,448 401,147,448 127,485,620 61,615,499 268,983,016 Roll Over -Projects - - 1,622,061,61 100% 1,795,000,000 1,622,061,611 1,622,061,61 1 1 Compensation for use - - 0% fees forgone 13,191,000 13,191,000 - - Universal Care 17,537,601 32% project 78,899,347 78,899,347 - 7,793,305 25,330,906 Roads Maintenance - - 0% Fuel levy 133,931,014 133,931,014 - - 3 Third Quarter Budget Implementation Report 2018-2019 Baringo County Government - County Revenue Receipts Revenue Sources Estimated 1st Quarter one Quarter Two Quarter Three Cumulative (% ) 2018/19 Supplementary Revenues KDSP Grant - - 0% 43,729,455 43,729,455 - - Rehabilitation of - - 0% Youth Polytechnics 35,605,000 35,605,000 - - EU grant for - 86% Devolution Advisory 85,000,000 85,000,000 - 73,254,422 73,254,422 DANIDA Grant - 50% 16,706,250 16,706,250 - 8,353,125 8,353,125 IDA World Bank - 100% (KUSP) 52,360,500 52,360,500 - 52,360,500 52,360,500 IDA World Bank - 36% (KCSAP) 117,000,000 117,000,000 - 42,084,111 42,084,111 KDSP Grant Phase II - 173,023,342 100% - 173,023,342 173,023,342 ASDPS (Agricultural - 20,718,749 100% sector Development) - 20,718,749 20,718,749 KUSP (Balance - 41,200,000 100% 2017/2018) - 41,200,000 41,200,000 Roads Maintenance - 33,653,742 100% Fuel levy - 33,653,742 33,653,742 Total 8,029,370,014 8,155,027,458 2,003,887,23 1,059,348,962 2,004,969,498 5,336,801,52 65% 1 4 During the supplementary budget the local revenue were adjusted upwards due to increment on Facility Improvement Fee (FIF) which had surpassed the budget estimates FY 2018/19 target of Kshs 54,000,000 by Kshs 3 Million. Table 3. Local Revenue Streams Sources of Revenue 2017-2018 2018-2019 1St Supplementary Budget Kshs Kshs 1 Game Park Fees 74,356,033 76,562,486 76,562,486 2 Animal Stock Sale Fees 15,253,617 22,595,872 22,595,872 3 Produce & Other Cess 38,561,801 53,951,137 53,951,137 4 Single Business Permit 48,577,208 45,040,773 45,040,773 5 Plot Rent/ Rates 39,203,758 55,970,625 55,970,625 6 Market Fees & Others 50,647,583 45,197,031 45,197,031 7 Koibatek ATC 2,700,000 4,489,954 4,489,954 8 Marigat AMS 2,400,000 8,087,010 8,087,010 9 Public Health 6,000,000 3,807,795 3,807,795 10 Veterinary 18,300,000 1,444,764 1,444,764 11 Hospital Revenue (FIF) 54,000,000 54,000,000 84,000,000 TOTAL 350,000,000 371,147,448 401,147,447 4 Third Quarter Budget Implementation Report 2018-2019 Table 5.
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