March 16, 2003	Sunday	Muharram 12, 1424

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PESHAWAR, March 15: District governments in the NWFP have been released over Rs1.9bn during the first eight months of the current financial year to cater for their expenditure requirements under the non-salary and development accounts, sources said.

Though the funds transferred to the 24 district governments appear to be slightly in excess of the quantum that should have been put at their disposal in line with the provincial government’s resource distribution plan for the year 2002-03, district governments continue facing financial problems during this period for a variety of reasons, the sources said.

Under the interim-period Provincial Finance Commission award, the 24 district governments are to be provided a total of Rs2.87bn during the year.

Of this, a sum of Rs1.09bn is to be distributed among them to cover their expenditure forming part of the non-salary component of their respective budgets.

Besides, an amount of Rs911.7m is supposed to be distributed among them as a grant in lieu of octroi and zila tax — the two levies abolished by the last Nawaz Sharif government — and Rs867m to carry out development schemes.

The district governments have so far received a sum of Rs720m under the non-salary head, Rs600m in lieu of octroi and zila tax and Rs575m for development works.

“On proportionate basis, the district governments should have been released around Rs1913.6m during the first eight months of the 2002-03 financial year against which they have been released funds slightly in excess,” claimed a well-placed official source.

Some of the district governments complain they had been allocated funds much less than their expenditure requirements under certain heads, the sources said.

However, the provincial government is not ready to accept the district governments’ stand on the plea that the newly-established entities’ expenditure requirements had been determined on the basis of budgetary plans prepared by each of the district government concerned, the sources said.

“The situation can be rectified next year but during the current fiscal, the district governments would have to spend in accordance with their respective budgetary plans submitted to the provincial government before the start of the year,” said the sources.

In some cases, according to credible information, district governments and their town municipal administration faced financial constraints after the provincial government deducted at source sizable amount of funds from the district-based entities’ share under the grant extended to them in lieu of octroi and zila tax.