ISLAMABAD, Oct 25: National Reconstruction Bureau Chairman Lt-Gen (retd) Tanvir Hussain Naqvi has said that fiscal decentralization is pivotal to empowering local governments.

He made this observation, while presiding over a review meeting, held here on Thursday, on the local governments’ fiscal and administrative decentralisation.

Mr Naqvi emphasized that provinces must ensure that necessary financial arrangements were put in place on priority.

The meeting reviewed progress on the implementation of the local government plan, the current status of budgetary process, and deliberated how to remove financial and administrative bottlenecks.

Restructuring of development authorities and WASAs was also discussed at the meeting, which was attended by the members of provincial transitional teams, comprising ministers for finance and local governments and other senior officers.

The NRB chairman said devolution was based on people’s participation in the development process. Half of the development budgets were to be spent through the citizen community boards (CCBs), he added.

The meeting finalized a transfer mechanism, keeping in view various fiscal constraints.

The officials representing the provinces informed the meeting that necessary measures had been taken to ensure that budgetary allocations were available in the local governments in time and that the establishment costs were all being borne by the provincial governments and there was no change in the previous mechanism.

According to the officials, the funds available to the local governments include development funds and all financial resources other than establishment costs. The budget would be prepared on the basis of available funds. The local governments will have the power to use these funds according to local priorities.

The current development budget-making mechanism also came under discussion. The provinces indicated that the budgets of the local governments were in the process of being finalized by the respective councils.

The NRB chairman stressed the need for early establishment of the local government commission, district public safety commission, Musalihat Anjuman and monitoring committees of the councils at three tiers to ensure transparency, check and balance and provision of speedy justice at the grassroots level.

The meeting reviewed steps taken by the provinces for the implementation of the provisions of the local governments finance chapter of the Local Government Ordinance, 2001, details of the monies transferred to the district provincial accounts and Tehsil provincial accounts, details of monies transferred to the local funds and status of the budget (development & non-development) preparation by the local governments.

The meeting also reviewed constitution of a local government commission and status of posting of officers in the district governments and the tehsil municipal administration, including their postings and transfers.—APP