Revenue Allocation Formula

Ca_i = P_i+PV_i+A_i+BS_i + FR_i

Where:

Ca=Revenue allocated to county

i =1,,2………47.

P_i =Revenue allocated to a county on the basis of population parameter.

PV_i = Revenue allocated to a county on the basis of poverty gap parameter.

A_i= Revenue allocated to a county on the basis of land area.

BS_i= Revenue allocated to a county on the basis of basic equal share parameter.This is share equally among the 47 counties.

FR_i= Revenue allocated to a given county on the basis of fiscal responsibility. this is shared equally among the 47 counties.