QUETTA, June 21: The Balochistan government will transfer Rs16.81 billion to its 29 districts in the year 2007-08 as against Rs15.23 billion in the current fiscal year, said Finance Minister Syed Ehsan Shah in his budget speech on Thursday on the floor of provincial assembly.

In addition, a sum of Rs72.5 million has been allocated to consolidate and strengthen the district administrations.

He informed the House that the Provincial Finance Commission (PFC) has announced the fifth award for distribution of resources between the district governments. This award will last for three years and will expire in June 2009.

The devolution system, he reminded the assembly members, was introduced on August 14, 2001 to devolve power and authority to the lower level and make government functioning easy and effective.

“But the devolution of political and administrative power to lower level will be effective and meaningful only if fiscal powers are also given,” he said.

Therefore, he said the government set up a Provincial Financial Commission (PFC). It announced four awards, each of which was of interim nature, but the fifth award is for three years and will continue till June 2009.

He said the PFC performed a dual function. One is to arrange for the distribution of resources between the provinces and the districts and second among the districts.

For this purpose, the Provincial Consolidated Fund has been divided into two parts. One is provincial Retained and second is provincialAllocable.

An inter district distribution formula has been drawn up for distribution of resources. The GST funds are distributed among the districts on the need basis.

The minister said that the district administrations were now capable of drawing up their own respective budgets and run their financial affairs on their own.