State can't meet Senate cash demand
06 June 2013, 14:02
Nairobi - Daily Nation reports that Treasury has said it will not meet the Senate’s demand to increase funding to counties without eroding the allocations made to the national government.
Intergovernmental fiscal relations advisor, Albert Mwenda, said an increase in the county allocations would have to be matched by a decrease in allocations made to the central government.
Mwenda added that there is no scope for more revenue and there is no scope for more borrowing under the current fiscal framework, thus the only option is to reduce expenditures of the national government and transfer the funds to county governments.
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