ISLAMABAD: Provinces have refused to meet the entire cost of local bodies’ elections and declined to clear outstanding electricity bills of hundreds of billions of rupees without ascertaining their credibility.

The two issues were discussed at the biannual (January-June 2013) meeting of the National Finance Commission presided over by Finance Minister Senator Ishaq Dar. The commission finalised half-yearly report for submission to parliament.

Sources said the federal finance ministry had asked the provinces to provide finances to the ECP to meet the local bodies’ election expenses, but it was informed by the four provinces that since the elections were to be conducted by the ECP as required under the 18th Amendment and the commission was a federal institution its expenses should be met by the centre and not by the provinces.

After discussing the relevant clauses of the constitution and detailed negotiations, the provincial finance ministers were persuaded to at least share 50 per cent responsibility. The total expenditures on LB elections are estimated at about Rs6 billion.

The provinces also strongly contested the federal government’s move for at-source deduction of electricity bills through the office of federal adjuster.

The commission, therefore, asked Minister for Water and Power Khwaja Mohammad Asif to have separate sessions with the provincial ministers to work out some arrangement to ease the cash situation of the power companies.