KARACHI, July 10: Lyari Town’s municipal administration has sought help from the Sindh government for special funds to overcome its deficit budget by exempting the Town from the relevant provisions of the SLGO 2001.

A deficit budget amounting to Rs105,000,000 was presented in the Town Council in its budget session on June 28 and 29, 2002, but could not be approved keeping in view the provisions of Section 112(7a) of the SLGO 2001.

According to the provisions of this section, no Town is allowed to prepare a deficit budget. The council accepted the circumstances explained by the Town’s administration which led to preparation of a deficit budget.

However, the council, through resolution no 18, dated 29-6- 2002, gave its concurrence to the budget estimates on the condition that the Sindh government may be requested that Lyari Town be declared exempted from the provisions of Section 112 (7a) of the SLGO, and to cover the deficit amount the government may be appealed for providing special funds.

In a communication to the secretary of the local government department, the Town administration explained the circumstances which compelled it to present a deficit budget.

These are illogical Town boundaries, non-existence of revenue-generation resources and unnecessary burden of expenditures and non-availability of prospective tax-base to introduce and impose new taxes.

The communication says that in view of these unavoidable circumstances, the TMA could not present balanced budget estimates for 2002-2003.

“The matter is, therefore, brought to the notice of the provincial government for appropriate action as per provisions of the SLGO 2001 and Sindh Local Government (Local Fund Budget Rules) 2001,” the communication concludes.

The Lyari Town mainly comprises residential areas with low- income groups and its two-key revenue generation centres — Lea Market and Timber Market — are now part of Saddar Town.

The areas of the Town are: Agra Taj Colony, Bihar Colony, Allama Iqbal Colony, Shah Beg Lane, Baghdadi, Chakiwara, Rangiwara, Nawabad and Memon Society.

It is also pertinent to note that the proposed Lyari Expressway project is also excluded from the Town and included in the SITE Town.