NAWABSHAH, June 9: Unexplained and unannounced reduction in monthly payment made to 1,108 union councils (UCs) of Sindh is affecting their performance.

Local government system introduced in 2001 was aimed at providing relief to people at their doorstep. Under this system development funds were not transferred directly to union councils but through district governments.

About Rs30,000 per month was allocated to each union council administration for staff salaries and public-related works which was gradually increased to Rs100,000 and finally to Rs200,000 per month after second local bodies’ elections.

According to estimates, around Rs221.6 million was distributed among 1,108 UCs per month for salaries and to carry out development works on smaller scale, including construction of culverts and drainage network and distribution of hand-pumps, sewing machines and scholarships among poor students.

All the UCs, including those of Nawabshah, received Rs70,000 less in April and May as each was paid Rs130,000 with the total receipt less by about Rs155.12 million.

The UC-4 nazim and District Accounts Committee member Ameen Qureshi, Thatt UC nazim Hanif Chandio, and Shahpur Jehanian UC nazim Khalid Arian told Dawn that they had been getting lesser amount during the last two months without being told the reason.

The executive district officer of finance said that they would receive the remaining amount after budget, they said.

District Accounts Committee Chairman and Pir Zakri UC Nazim Syed Munir Shah expressed apprehensions over curtailment of funds as smaller works were being disturbed, putting strain on people.

When contacted, Special Secretary, local government, Dr Sikandar Panhwar linked the decreased amount to 13 per cent less recovery in the GST by the federal government.

Additional Secretary for budget in the finance department Naheed Shah Durrani denied curtailment of district or union council funds. She said the federal government on an average received 91 to 92 per cent tax recovery and paid the provinces in proportional percentage but the districts were given budgeted amount which was wrong as their funds were increasing.

She said the system had been corrected and the share was being transferred as per receipt percentage and whenever the centre would receive more, they would be in a position to adjust the same to districts.

A reliable source told Dawn that the funds of taluka municipal administrations were also curtailed throughout Sindh due to same reasons.

Nawabshah TMO Nawaz Ali Domki confirmed the Taluka Municipal Administration received 50 per cent and 36 per cent less amount in April and May, respectively.