ISLAMABAD, April 8: The government has decided to merge the provincial fund with the existing funds at the local-government level.

The decision was taken at a meeting on new local government finance system held here on Monday, presided over by National Reconstruction Bureau (NRB) Chairman Tanvir Naqvi.

Provincial finance ministers, secretary-general finance, representatives of the ministry of finance, Auditor General of Pakistan, controller general of accounts, provincial secretaries of finance and the provincial accountant generals attended the meeting.

The meeting decided that each local government, instead of preparing two budgets as in the past, would develop a single budget. And there would be only one fund for each local government called district fund, Tehsil/Town fund and union fund.

According to a press release issued by the NRB, Mr Naqvi said the current local government finance system was an interim arrangement for the transition period till June 2002. Under the Local Government Ordinance it is to be replaced by the new system.