The Intergovernmental Budget and Economic Council (IBEC) is established under Section 187 of the Public Finance Management (PFM) Act. It serves as a platform for consultation and coordination between the national and county governments on matters related to budgeting, financial management, and economic policies.
🔹 Composition of IBEC
The Council consists of the following members:
✅ Chairperson:
📌 The Deputy President (who chairs IBEC).
✅ Members:
📌 The Cabinet Secretary responsible for finance.
📌 A representative of the Parliamentary Service Commission.
📌 A representative of the Judicial Service Commission.
📌 The Chairperson of the Commission on Revenue Allocation (CRA) or a designated representative.
📌 The Chairperson of the Council of Governors (COG).
📌 All 47 County Executive Committee (CEC) members for finance.
📌 The Cabinet Secretary responsible for intergovernmental relations.
🔹 Functions of IBEC
IBEC facilitates consultation and cooperation between national and county governments on key financial and economic issues.
1️⃣ Reviewing Key Budget Documents
📌 Discusses the Budget Policy Statement, Budget Review and Outlook Paper, and Medium-Term Debt Management Strategy.
2️⃣ Budgeting, Economic, and Financial Management
📌 Provides a platform for consultation on budgeting processes, economic strategies, and financial management at both national and county levels.
3️⃣ County Borrowing and Loan Guarantees
📌 Sets the framework for borrowing by counties.
📌 Establishes criteria for national government guarantees on county loans.
4️⃣ Approving Cash Disbursement Schedules
📌 Agrees on the schedule for disbursing funds from the Consolidated Fund based on cash flow projections.
5️⃣ Reviewing Proposed Legislation and Policies
📌 Examines proposed financial laws and policies that impact county governments.
📌 Advises on new regulations to the Public Finance Management (PFM) Act.
6️⃣ Equitable Revenue Distribution
📌 Recommends how national revenue should be shared between the national and county governments.
📌 Ensures fair allocation of funds among the 47 counties.
7️⃣ Addressing Other Financial Matters
📌 Discusses any other economic or financial issues as determined by the Deputy President and other members.
🔹 Meetings and Operations of IBEC
📌 The Council meets at least twice a year.
📌 The Deputy President sets the agenda in consultation with members.
📌 If the Deputy President is absent, the Cabinet Secretary for Finance chairs the meeting.
📌 The National Treasury provides secretariat services to IBEC.
📌 IBEC can invite other stakeholders to attend meetings.
🔹 Tenure of IBEC Members
📌 Appointed members serve for two years and can be re-nominated for one more term (maximum four years).
📌 A member ceases to serve if they leave the office that qualified them for IBEC membership.
📌 Conclusion
The Intergovernmental Budget and Economic Council (IBEC) is crucial in ensuring fiscal responsibility and effective financial coordination between the national and county governments. By discussing budgeting, revenue distribution, borrowing, and financial management, IBEC enhances transparency, accountability, and economic planning in Kenya’s devolved governance system. 🚀
