This is the seventh budget outlook paper (BOPA2011) since its first production in 2004. It sets out the background and broad fiscal parameters for the 2011/12budget and the medium-term, consistent with Government strategies and policies. The BOPA2011 is prepared taking into account resources required for the implementation of a new Constitution, which, among other things, provides for fiscal decentralization of resources to the forty seven (47) counties and reforms to several institutions. The ensuing MTEF resource allocation therefore will be critical in laying the foundation and setting the stage for full operationalization of the new Constitution.[...]