RAWALPINDI, July 15: The Rs328.996 million deficit budget of the Rawalpindi District Council for the fiscal year 2002-03 was approved on Monday. The revised budget for the fiscal year 2001-02 was also approved.

District Nazim Raja Tariq Kiani presented the budget at a session of the Council which lasted for 20 minutes and was presided over by Naib Nazim Raja Javed Ikhlas.

The pre-budget sessions with different groups of councillors helped in the early approval of the budget.

Almost 85.82 per cent of the budget has been allocated for development works. An amount of Rs141.244 million has been allocated to finance the ongoing schemes categorized as liabilities, while Rs14.346 million has been earmarked for new projects.

The budget covered the local fund only and the other portion, comprising the provincial grant, would be presented at a separate session later this month after the Punjab Finance Commission gives its award.

The contribution of Rs126.756 million received in lieu of goods exit tax would be equally distributed among the union councils in the district, which too would be spent on projects initiated by the union council administrations.

The non-development expenditure included an allocation of Rs37.5 million to cater for the fringe benefits allowed to the district Nazim and Naib Nazim and payment of salaries, emoluments and pensions of the employees during the fiscal year.

Over 52 per cent of the amount (Rs6.45 million) allocated for contingencies would be consumed by the offices of the district Nazim and Naib Nazim. The rest would be mostly spent on payment of outstanding bills and refund of earnest money.

The district government would further spend Rs2.3 million on debt servicing and another Rs0.4 million to pay the audit fee.

The council earned Rs0.3 million revenue on account of fees from educational institutions, health facilities and veterinary hospitals; Rs0.8 million from rent of properties, including shops; Rs0.06 million from photostat kiosks; Rs0.3 million from taxi stand; Rs0.44 million from canteen; Rs0.6 million from Chattar Garden; and Rs0.25 million from toll tax.

Non-taxable receipts included profit on bank accounts (Rs14.94 million) and miscellaneous income from call deposits, earnest money and income tax from the bidders in contracts (Rs1.00 million). The district government would further receive a grant to the tune of Rs126.756 million in lieu of goods exit tax. The net income from all these sources would come to Rs132 million. The income estimated for the fiscal year 2002-03 had gone down by Rs4 million compared to the revised figures of last year.

Meanwhile, the district government had an opening balance of Rs180 million taking the total resources available at the disposal of the administration to Rs312 million.

The district government has put the expected expenditure figure at Rs328.996 million, showing a budgetary deficit of Rs16.996 million. Mr Kiani said the provincial government had already been approached to help the district administration to meet the deficit.

The budget documents say: “The sources of income are so meagre that it is hardly possible to meet the recurring expenditure.”