MULTAN, June 25: The Punjab government has restrained local bodies for a period of three months from preparing their respective budgets for the 2005-06 fiscal. Sources in the provincial finance department said that implementation on the fiscal statements of those local bodies had been held in abeyance which had finalized and approved them from their councils.

In a letter sent to the heads of all the tiers of local bodies, DCOs and executive district officers (finance and planning), the provincial finance department directed them not to start any new development scheme during the next three months. “Funds can be utilized only on the ongoing schemes,” the sources added.

The local bodies however were allowed to utilize currently available funds for three months on ‘pro rata’ basis that meant 10 per cent increase to the amount utilized during the corresponding period last year. Sources said that the step had been taken to avoid misuse of funds by the sitting nazims ahead of the local polls.