LG Act 2013 envisages no less than 30% allotment to local bodies. PHOTO: AFP
The Pakistan Tehreek-e-Insaf-led K-P government on Wednesday announced its budget proposal for the upcoming fiscal year with a total outlay of Rs603 billion.
It has allocated Rs126 billion for the provincial ADP – excluding foreign assistance of Rs82 billion.
The LG Act requires the government to allocate no less than 30 per cent of its provincial ADP for the districts. However, this time around the government has allocated only 22.2 per cent by setting aside Rs28 billion for district ADPs.
Interestingly, in the budget document, a copy of which is available with The Express Tribune, the government does acknowledge that the Local Government Act envisages a 30 per cent allocation for development programmes for districts. Despite that, the government went on to do exactly the opposite.
The Rs28 billion for districts makes up around 22.2 per cent of the total Rs126 billion allotted for the provincial ADP. Moreover, a pie chart showing a division of ADB funds, found on Page 64 of the White Paper, shows a “22%” allocation for district ADP, a full eight per cent short of the minimum requirement under the LG Act.
This is in stark contrast to the ADP budget allocations announced last year. In the fiscal year 2016-17, the government had allocated Rs33.9 billion for the districts – which was around 27.1% of the provincial ADP of Rs126 billion. That allocation too was below the 30 per cent allocation threshold outlined in the LG law.
It is pertinent to mention that the provincial government had slashed last year’s Rs33.9 billion allocation by 25 per cent because of non-availability of funds. Apart from the cut, the K-P government had failed to release around Rs6 billion for the last quarter of the fiscal year 2016-17.
Breakdown
The K-P government has set aside Rs175.58 billion for the local government department of the province for fiscal year 2017-18.
This includes Rs28 billion for the district ADPs, Rs121.37 billion to pay salaries of staff, while over Rs20 billion have been earmarked for non-salaried expenditure. A further Rs5.18 billion in grants for local councils have been marked.
Out of the Rs28 billion earmarked for district ADP, Rs13.1 billion would be provided to villages, neighbourhood councils while Rs7.45 billion each would be provided to tehsils and districts.
For some 35 development projects in the local government sector, around Rs4.5 billion has been earmarked – Rs2.36 billion for ongoing schemes and Rs2.13 billion for new projects.
According to the budget document, the “major targets” to be achieved in the LG sector include a development package for Kumrat and Barawal valleys in Upper Dir; the installation of a sewerage treatment plant in Mansehra and Kalabat in Swabi; the establishment of a family park in Naran; the rehabilitation of flood-damaged infrastructure in areas of Swat and Chitral districts.
Moreover, the local government will get foreign assistance of Rs3.952 billion for three projects.
The local government is supposed to raise Rs19.8 million under various taxes and fees.
Published in The Express Tribune, June 8th, 2017.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ