Finance and Economic Planning > CFSP > 2015-16 FY CFSP > INTRODUCTION AND BACKGROUND > Fiscal Responsibility Management (Section 107)

In line with the Constitution, the Piblic Financial Management (PFM) Act, 2012, sets out fiscal responsibility principles to ensure prudency and ttanuparhncy in the managoment of publt, resources. The PFM law (Section 15) states that:

(1)Over the medium term, a minimum of 30% of the county budget shall be allocated to development expenditure

(2)The county gevernment’s expenditnre on wages and benefits for public ofiicers siall not exceed aepercentage of the county government’s revenue as prescribed by the regulati ns

(3)Over the medium term, the county government’s borrowings shall be used only for the purpose of financing development expenditure and not for recurrent expenditure

(4)Public debt and obligations shall be maintained at a sustainable level as approved by county assembly

(5)Fiscal riaku shall be managed prudently

(6)A reasonable degree of predictability with respect to the level of tax rates and tae bases shall e maintained, taking into aecouot any tax reforms that may be made inethe future