PESHAWAR: The Khyber Pakhtunkhwa government has decided to continue with the existing recommended formula for determination of share of Local Governments for a period of one year.
Provincial Finance Minister, Hamayun Khan in his budget speech said that in Khyber Pakhtunkhwa, District Governments were functioning in 25 Districts for devolved functions under the Local Government Ordinance 2001.
The Provincial Finance Commission (PFC) was assigned to recommend formula for determination of share of Local Governments based on which a three years PFC Award was announced in 2008-09.
The Award provides for annual review by the PFC. At present PFC does not exist due to expiry of its tenure and completion of other legal requirements and keeping in view the provision of sub-section 7 of Section 120D of the Local Govt.
Ordinance, 2001, the Government has decided to continue with the existing recommendations for further period of one year with amendments on the pattern of Provincial Budget as follows:
(a) 5percent increase was awarded in Salary Component over Revised Estimates of the current year. This will cover the normal growth. Besides, Rs. 11,811.890 million has been provided as Block Allocation for Salaries to cover the expenditure on a/c of posts transferred to district as a result of 18th Amendment and expected increase in salary.
(b) 10percent increase has been made over the revised estimates of Non-Salary Allocation like "Others" to cover the essential need of the District Governments.
(c) Electricity Charges has been allocated on the basis of figure provided by the Energy Monitoring Cell, Finance Department.
(d) 10percent increase has been worked out on Octroi Share.
(e) The share of Zilla Tax of current financial year 2011-12 has been repeated for the next financial year 2012-13.
(f) Rs 500 million has been allocated as Grant for weak TMAs and Rs. 500 million has been allocated for Matching Grant for TMAs. This grant will be available for those TMAs who will generate additional resources.
(g) A separate allocation of Rs 100 million has been made as Conditional Grant.
(h) Special provision of Rs 500.000 million each for M&R and Electricity has been made.
(i) 10percent increase has been worked out on Development Share of Districts.
(j) A Grant of Rs. 1.000 million each on account of Octroi Share has been made for newly established 03 TMAs one in District Swabi and 02 in District Tor Ghar.
(k) Rs 500 million has been allocated as Lump sump provision at the disposal of Finance Department under Octroi to cover the unforeseen requirement of the districts.
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