Big plans: Sindh govt sleeps on provincial finance commission

Its formation will ensure equitable distribution of funds among districts

KARACHI:

Soon after the passage of the 18th Amendment in 2010, different stakeholders and political parties have been demanding finance autonomy for the districts via the formation of a provincial finance commission. 

The Sindh Assembly unanimously adopted a resolution in October last year demanding the creation of a commission to distribute funds among districts. "There is also a provision in the Local Government Act, 2013, that there will be a finance commission consisting of thirteen members," said Nand Kumar of Pakistan Muslim League - Functional.

Referring to the act, he said that the finance minister is supposed to be chairperson of the commission, the local government minister co-chairperson and two MPAs, to be nominated by the speaker and leader of the opposition, will be among other members of the commission. The LG Act 2013 also states that the local government secretary, planning and development department secretary, mayor of the Karachi Metropolitan Corporation, chairpersons of district councils and two professionals from the private sector would be nominated after the establishment of a secretariat for the provincial finance commission.

The Sindh government representatives argued that since there was no local government in place, there was no need for a provincial finance commission. Muttahida Qaumi Movement MPA Khalid Ahmed moved a resolution in the assembly, suggesting the set up of the commission on multiple criteria, such as revenue generation, backwardness, population and area of a particular district. "Thar is the most backward area and there should be some sort of formula to allocate and release the funds under the commission," he said, referring to Article 140-A of the Constitution, which talks about the financial and administrative autonomy of elected local bodies. "The local government elections are in process, therefore not only the provincial finance commissions but district finance commissions should be established to distribute the resources among union councils," he said.

Economist Dr Kaisar Bengali said there was no provision in the 18th Amendment about a provincial finance commission, but it should be made, otherwise the distribution of resources among the districts would be exercised on the basis of 'like' and 'dislike'. "It is an excellent idea, as with this there will be no discrimination among the lower-tier government and funds would be released with a consensus formula," Bengali said.

Leaders of different political parties are of the view that, after the 18th Amendment, the federal government deducts 48 per cent of the total revenue it generates and distributes the remaining amount among the provinces on multiple criteria and the provincial government should also adopt the same formula. "This will enable the districts to execute their own projects and remove the sense of deprivation that prevails among those districts that complain of getting meager funds," said Pakistan Muslim League - Nawaz MPA Haji Shafi Jamote. "Karachi generates more than other districts and Thar, being the largest district in terms of area, suffers from backwardness. But Benazirabad and Khairpur districts get more funds than both [Karachi and Thar] districts, which is a discriminatory approach," Jamote said.  The spokesman for CM House said that after the local government elections, the provincial finance commission would be formed.

Published in The Express Tribune, November 14^th, 2015.