HYDERABAD, Jan 28: The finance and planning department of the district government here on Wednesday received support from the district council for presenting its budget estimates of 2003-4 to the Sindh finance department.

Finance and planning EDO Syed Sikandar Al Shah distributed a five-page budget sheet at the council session, incorporating details of new expenditures which had resulted in a deficit of Rs380 million.

Commenting on it, district council convener Nawab Rashid Ali Khan said that there was no need to seek approval from the Sindh finance department for the budget. However, he added, the budget should be prepared within the parameters set by the Sindh Local Government Ordinance 2001, requiring district government to match its receipts with its expenditures.

He said that the district finance department had completed a formality by presenting the budget before the council therefore it should be approved. The budget document showed that there was a saving of Rs183.52 million from last year's non-salary component. The receipts of the defunct district council stood at Rs15.503 million whereas its octroi and district tax share was Rs77.362 million.

An amount of Rs430 million was shown against the Annual Development Programme 2003-4. Expenditures of Rs25.383 million pertained to district Nazim's secretariat whereas Rs13.38 million was allocated for the district Naib Nazim secretariat.

The office of the law EDO was allocated Rs120,000 and that of information technology Rs1,000 only. Initiating the debate on the budget, Rana Mehmood Ali Khan said that such lapses must be avoided in next budget, preparation for which should be undertaken from end of February.

He argued that the Sindh finance department had rightly objected to the deficit budget. Yusuf Qureshi said that budget estimates must contain detailed statement of proposed development schemes under the ADP.

The council also adopted a resolution of Mr Khan for payment of honourarium to the members of district council from retrospective effect i.e. August 14, 2001.

In response to queries by this correspondent, the finance EDO claimed that of Rs380 million deficit, Rs30 million pertained to 15 per cent increase in salaries that was shown in the head of district government although the amount was to be paid by the provincial government.

Likewise, he said Rs80 million were expenditures of the secretariats of the district Nazim and Naib Nazim and the EDOs of law and information technology. The amounts were covered from the share of octroi and district tax amounting to Rs77.362 million.

There was a saving of around Rs180 million as well, the EDo said. Thus the budget's volume stood at Rs3.554 billion against its receipts of Rs3.734 billion, showing a surplus of Rs179.999 million, the share of octroi and district tax of the defunct district council, he said.

SECRETARIAT: The district council was informedon Tuesday that the district finance department had violated the Sindh Local Government Contract Rules by spending Rs1.7 million on the district Nazim secretariat during the visit of President Gen Pervez Musharraf.