By Tajeu Shadrack Nkapapa
The Public Finance Management (Amendment) (No. 3) Bill, 2024 has been introduced in the National Assembly
The primary aim of this Bill is to amend the Public Finance Management Act, in order to provide for the financing of transferred functions between the two levels of government in accordance with Article 187 of the Constitution.
The legislation stipulates that functions that are transferred will continue to receive funding from existing sources as outlined in the approved budgets of the government level that is transferring them.
Furthermore, the expenses associated with these transferred functions will be determined according to the costing framework established in the manuals of both national and county governments.
The Bill also stipulates that the transfer agreement between the two tiers of government must contain a clause regarding the acquisition, disposal, and transfer of assets and liabilities. Moreover, the transferring tier of government is mandated to develop cash flow projections derived from anticipated revenues from multiple revenue sources.
According to the National Assembly, the Public Finance Management (Amendment) (No. 4) Bill, 2024 has also undergone its first reading in parliament.
“The principal object of the Public Finance Management (Amendment) Bill, 2024, is to amend the Public Finance Management Act (Cap. 412A),” the National Assembly said on X.
The National Assembly further said that Clause 2 of the Bill provides for the amendment of section 50 of the principal Act to clarify the effective dates of the debt threshold requirement for the Cabinet Secretary National Treasury to ensure compliance.
“Clause 3 of the Bill provides for the amendment of section 194 of the Act to provide for a framework for implementation of accrual accounting in Government and risk management by the Public Sector Accounting Standards Board,” the National Assembly added.
Parliament clarified that it is meant to improve the accounting standards for better transparency and governance.