HYDERABAD, June 22: The district government finance and planning section is set to cut unnecessary expenses to keep its budget estimates within Rs3.16 billion allocated by the Sindh government, it was learnt through official sources on Tuesday.

The district government had expected the one-line budget for 2004-5 to be close to Rs4 billion, but in light of the deduction, unnecessary expenses in the head of maintenance, furniture, fixtures, vehicles and electronic items would have to be cut.

However, district octroi share and revenue department receipts would be in addition to the one-line budget of Rs3.16 billion. Moreover, all funds would be operated through a non- lapsable account while other accounts would be closed.

The finance and planning section would also look into the issue of "ghost" employees so that their salaries could be adjusted in other heads while the district government would collect details regarding surplus employees in wake of the devolution of the defunct district council.

A council source said that around 412 employees were sitting idle as they had not been absorbed in different local governments formed under the Sindh Local Government Ordinance 2001.

The finance department had allocated more than Rs83 million in the annual budget for the defunct council to be met through octroi and district tax, which was objected to, as it was not viable to allocate funds for the defunct body through which the surplus employees were drawing their salaries.

A finance and planning source said that the employees - mostly from the health and education departments - would continue to receive salaries unless they were properly absorbed in taluka municipal administrations and their salaries approved.

After enforcement of the SLGO, services of defunct local council employees were to be utilized for meeting shortfalls in offices of other councils, administrations and departments. They have not been absorbed completely so far.

The district government gets an annual share of about Rs80.5 million under octroi and district tax. Moreover, a saving of more than Rs20 million is also expected this year.

Foreign agencies would also be free to continue funding projects in the health and education departments as the funds would be looked after by the departments themselves.

An amount of Rs335 million has been allocated for the Annual Development Programme 2004-05, of which, most schemes are underway and approved by the finance section.

FOUR ACQUITTED: The second judicial magistrate Hyderabad here the other day acquitted four accused who had presented a cheque of Rs1 million to President Gen Pervez Musharraf in connection with the relief fund for the rain-hit people of Badin and Thatta districts.

The acquittal was ordered by the court following an out of court settlement in the case lodged under sections 420 and 4890 (f). Dr Faheem Sheikh, Dr Farrukh Bashir, Mohammad Naeem and Athar Ali Tippu were booked by the GOR police on the complaint of an army major after the cheque was given to the president by the district nazim on behalf of a company.

The accused were arrested and their applications were filed before the trial court which was rejected with directives that section 467 PPC should be incorporated in the FIR.

Qurban Ali H.Chohan advocate, representing Dr Faheem Sheikh filed an appeal before the seventh additional district judge who also rejected the bail application and remanded the case back to the trial court, observing that it should be decided under same sections.

Later, the two sides filed separate applications before the court, praying the court to allow them to compound the case out of the court. The applications were filed after the accused deposited an amount of Rs1 million in a bank branch. The court granted permission accordingly.