credibility.professionalism.accountability presentation on resource mobilization for government...

Credibility. Professionalism . AccountAbility

Presentation on Resource Mobilization for Government Projects

Presentation at ICPAK PFM Conference at Sarova White Sands, Mombasa.

CPA Fredrick Riaga-ICPAK

1. Introduction External sources can never replace basic funds of the national

treasure;

With regard to the national treasure institutions need to: promote the institution’s reputation at national level

Credibility . Professionalism . AccountAbility

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National Government Sources of Revenue( Article 209)

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County Government Sources of Revenue(Article 209)

HOW THE BUDGET 2014/15 IS SHARED


Comparative: Former LA Revenue Streams


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Revenue Analysis- National Government

Revenue Analysis- County Government

The total budgets for the County Governments in FY 2013/14 is estimated to be Kshs.269.1 billion comprising of Kshs.165.8 billion (61.6%) for recurrent expenditure and 103.4 billion (38.4%) for development expenditure;

During the period July 2013 to March 2014, the total revenue available to the Counties amounted to Kshs.133.3 billion comprising of:

1. Kshs.110.1 billion (82.6%) from the national shareable revenue,2. Kshs. 19.1 billion (14.3%) raised from local revenue sources3. Kshs. 4.2 billion (3.1%) as balance brought forward from FY 2012/13


THE CASE OF RWANDA

The 1994 resulted to loss of human lives & virtual destruction of the already weak economy & socio-economic institutions;

The economy rapidly rebounded - growing by about 80% between 1994 and 1998;

2003- 2.9%; , 2005/06- 9% ; 2007- dropped to 7.7% ; & 2008-11.6%.

Politico-economy factors affecting resource mobilization1. High defense budget;2. Overreliance on donor support;3. Need to support the ambitious Rwanda Vision 2020

Tax reforms-1. Tax compliance at 97%;2. 90% of revenue collected by banks;


TRENDS IN RWANDA’S DEVELOPMRNT FINANCING


NATIONAL GOVERNMENT- RECOMMENDATIONS

1. Need to expansion of the tax base and sealing of loopholes in Tax administration- VAT Act 2013; reform of Income Tax Act planned; Tax Procedures Bill 2014 & Excise Duty Bill 2014;

2. Private capital key in resourcing3. Borrowing from the domestic market- Treasury Bills and

bonds:4. Shift from traditional sources of external funding: West to

the East?5. Efforts must be put in place to strengthen the legal &

institutional framework, PFM reforms to support resource mobilization strategies;


COUNTY GOVERNMENT- RECOMMENDATIONS

1. Invest in ICT & cross-institutional engagements to realize maximum impact;

2. Leverage on domestic tourism as a source of revenue;3. Maximize on business licences;4. Create a favorable environment to support entrepreneurship & attract

investment through reforms of business regulatory frameworks;


Thank You


credibility.professionalism.accountability presentation on resource mobilization for government...

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