LAHORE, July 18: District governments in the Punjab failed to spend 41.1 per cent of the Rs20.742 billion cash transfers to them during the fiscal year 2001-02, a central bank report says.

The report sent by the bank to the Finance Department says that the net balance in the District Governments Account IV stood at Rs8.523 billion at the close of the financial year compared to an amount of Rs12.219 billion drawn by the 34 districts. On the last working day of the last fiscal, the districts withdrew Rs910.225 million from the account.

Between Nov 1, 2001 and June 17, 2002, the province had released Rs4.648 billion as non-salary non-development funds, Rs4.108 billion as OZ grant, and Rs436.008 million as UIP tax share. Besides, Rs4.658 billion development funds and Rs5.646 billion Khushhal Pakistan Programme funds were also released during the same period.

Another Rs651 million were paid as devolution transition funds and Rs723.748 million as loans under Grant No 43. The loans were given to Rawalpindi (Rs120.6 million), Attock (Rs48.865 million), Sargodha (Rs14,352 million), Lahore (Rs451.5 million), Lodhran (Rs16.681 million), Faisalabad (Rs56.25 million) and Bahawalnagar (Rs15.5 million).

At the end of the year, according to the State Bank balance sheet, Bahawalnagar had the highest net balance of Rs464.487 million followed by Lahore’s Rs404.270 million and Dera Ghazi Khan’s Rs401.732 million.

Sargodha has a net balance of Rs346.047 million, Khushab Rs327.007 million, Chakwal Rs313.381 million, Jhang Rs312.432 million, Mandi Bahauddin Rs309.283 million, Hafizabad Rs307.103 million, Rawalpindi Rs302.896 million, Mianwali Rs302.577 million, Rahim Yar Khan Rs288.887 million, Faisalabad Rs287.953 million, Muzaffargarh Rs276.780 million, Jhelum Rs271.155 million, Toba Tek Singh Rs266.928 million, Narowal Rs258.801 million, Khanewal Rs253.867 million, Rajanpur Rs245.172 million, Attock Rs238.607 million, Sheikhupura Rs215.931 million, Multan Rs210.057 million, Kasur Rs206.262 million, Lodhran Rs179.997 million, Vehari Rs179.022 million, Pakpattan Rs176.438 million, Sahiwal Rs170.185 million, Sialkot Rs164.303 million, Gujrat Rs162.675 million, Bahawalpur Rs161.341 million, Bhakkar Rs154.732 million, Okara Rs138.080 million, Layyah Rs133.865 million and Gujranwala Rs90.892 million.

It is, however, not clear how much of the development and KPP funds have been left unutilized. Government officials claim that “average utilization of the development and KPP funds by the districts stood at over 70 per cent.”

Meanwhile, responding to queries from various district governments, the provincial chief inspector of treasuries has informed the districts that the unspent balance in the District Provincial Account IV as on June 30, 2002 (last day of the last fiscal) would “constitute the opening cash balance of the respective district government on July 1 (the first day of the current fiscal) and shall be available for utilization during the financial year 2002-03 against the budgetary authorizations approved by the district council.”

The Planning and Development Board told Dawn here on Thursday that the money transferred into the District Provincial Account IV could not lapse under the new local government law. But, they said, each district government would have to obtain the approval (re-authorisation) from their councils for utilization of the balance left in their accounts.