APRM • SECOND COUNTRY REVIEW REPORT OF THE REPUBLIC OF KENYA 333. Fiscal decentralization featured prominently in the CSAR’s reports and makes clear that the Government has pursued several reforms so as to strengthen the management of the decentralised fiscal resources. In its submission, the CSAR acknowledges that the devolution of functions has created new challenges with respect to PFM; and stresses that there should be new financial rules and practices to effectively manage sub-national borrowing in order to ensure fiscal discipline and sustainability. It notes that the county governments have embraced the need for citizen engagement in developing budgets but little has been done in the area of transparency with most budgets not publicly available. 4.5.2 Findings of the Country Review Mission 4.5.2.1 Progress Made Since 2006 Fiscal Outlook 334. Contours of fiscal performance are instructive. The total revenue of the government averaged 25.9% of the Gross Domestic Product (GDP) between 2006 and 2013. The ratio of total expenditure (including net lending) to GDP rose from 29.2% in 2010/2011 to 30.9% in 2013/2014 and fell to 29.8% in the fiscal year 2014/2015. Compositionally, the recurrent expenditure-GDP ratio, which averaged declined 20.6% annually in between 2010/2011 and 2011/2012 fell to 19.6% in 2013/2014–2014/2015 period. Over the same periods, the proportion of development (capital) expenditure in GDP increased from 9.0% to 10.3%. Therefore, emphasis has shifted to development expenditure so as to accelerate economic growth. This is good and there is need to sustain this budget culture. Budget deficit has climbed from 4.0% of GDP in the period of fiscal stimulus to 6.5% in 2014 and it was financed through domestic and external borrowing. Public debt has risen but it remains within manageable levels as it rose from 36% of GDP in 2008 to 48.6% at the end of 2013. Debt sustainability analysis (DSA) shows that Kenya has a favourable debt outlook. Figure 15: Summary of Actual Expenditure Accounts (KShs billion and Percent), 2012/2013 Recurrent expenditure 190,6; 17% Development expenditure 312,5; 28% | 156 | 611,7; 55% Consolidate fund