County Fiscal Strategy Paper (2016 CFSP)

Uasin Gshu is holding public participation on its 2016 CFSP on February 18, 2016 at the County hall and all the sub-counties at the sub-county offices; Turbo, Soy, Moiben, Kesses, Kapseret,Ainabkoi. But just what is county fiscal strategy paper - CFSP? Knowing what this paper is all about, puts in a better position to give a better input.

The County Fiscal Strategy Paper is the first official document released by the County Government laying out its broad plans for the next Budget year http://internationalbudget.org/wp-content/uploads/CFSP.pdf. It normally includes a discussion of fiscal performance of the active Budget, Economic trends and an estimate of overall spending and revenues and most importantly, the sector ceilings. It is supposed

The performance shall include achievements of both financial and non-financial targets while ceilings should tell us changes from previous year’s allocations and should give justifications for those changes.
In preparing the County Fiscal Strategy Paper, the County Treasury shall specify the broad strategic priorities and policy goals that will guide the County Government in preparing its Budget for the coming financial year and over the medium term. The County Treasury shall include in its County Fiscal Strategy Paper the Financial Outlook with respect to County government revenues, expenditures and borrowing for the coming financial year and over the medium term.

In the context, we should expect to see refined CBROP ceilings – we should see changes made to the provisional ceilings released earlier in the CBROP 2015 and reasons for any adjustments when setting the final

the County Debt shall be maintained at a sustainable level as approved by County Assembly;

the fiscal risks shall be managed prudently; and

6. a reasonable degree of predictability with respect to the level of Tax Rates and Tax bases shall be maintained, taking into account any Tax reforms that may be made in the future.

In summary, your fiscal papers should tell a story of how it meets the above fiscal responsibility principles – what measures is the county putting in place to achieve the 70/30 principles where at least 30% should go to development expenditure?
Additional considerations: A good Fiscal Strategy Paper should also include information related to risk:

Fiscal risk related to Debt, contingent liabilities, State Corporations, pensions, etc. What happens if we suddenly lose money or owe more than expected?

Fiscal sensitivity analysis: assessing what happens if our estimates for growth at the County level are wrong? How will the County Budget be affected?

As you prepare to attend and participation the consultations on the CFSP on Wednesday February 18, 2016 in Uasin Gishu county, other counties could be holding these consultations as well, i hope this will be of help for you to review the fiscal paper which is also expected to be tabled in the assembly in the next two weeks. Do not hesitate to contact us for more information or