Still intact: LG minister denies slashing development funds

Nazimeen Ittehad Council condemns administration over non-payment of salaries

PESHAWAR: Minister for Local Government Inayatullah Khan said the administration has not slashed development funds for grass-roots development, adding half the amount was already released. He denied claims that the government had cut funds due to the fiscal shortfall in the current financial year.

He was speaking at a news conference at Peshawar Press Club on Monday after the Nazimeen Ittehad Council organised a rally to condemn the administration for not providing development funds and salaries. The demonstration started from Bacha Khan Chowk and passed through different routes before reaching the press club. Once there, they slammed the K-P government for not giving them any importance.



The minister tried to negotiate with the protesters, but they were not willing to listen and demanded the release of funds and salaries as promised earlier.

Money for the LG

The minister said the government allocated Rs13 billion for 3,501 village and neighbourhood councils of the province. He said 2,600 secretaries had been hired for village and neighbourhood councils to enable these tiers of the local government system to serve the people. Similarly, he added a sum of Rs1.75 billion had been provided to the VCs and NCs as operational costs.

Talking about local government reforms, the minister said the provincial administration allocated 33% of the development outlay for the local government. According to it, Rs42 billion was set aside for grass-root development in the current financial year, while 50% of the funds had been released to all three tiers.

The senior minister said the procedure for the approval of the Annual Development Programme (ADP) scheme had been simplified for village and neighbourhood councils.

In response to the constant demands of councillors, a special financial grant of Rs200 million was released to the district councils to settle staff salary issues and another Rs500 million for the financially weak tehsil municipal administrations to meet their needs.



About utilisation of the Annual Development Program FY2015-16, Inayatullah quoted a financial review and said 60% to 70% funds had been used.

For the current shortfall, the minister said the federal government had not released the outstanding net hydel profit due to K-P and this resulted in a financial deficit. Consequently, clearing liabilities worth billions to contractors was proving to be a problem.

The minister added the federal government made a commitment to release an initial instalment of Rs25 billion under the head of net hydel profit (NHP) in the current financial year. As per an agreement, the total is Rs70 billion.

Talking about the performance of his department, he said Rs800 million had been allocated for development in Regi Model Town, while Rs200 million would finance the provision of electricity to the housing society.

He added work for gas supply to the town would be completed by July this year.

He further stated around 800 schemes worth 60 million Euros had been approved with the financial assistance of foreign donors in Malakand Division, excluding Buner.

Published in The Express Tribune, May 3^rd, 2016.