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Toba Tek Singh 2011-12 Centre for Peace and Development Initiatives, (CPDI) is an independent, non-partisan and a not-for-profit civil society organization working on issues of peace and development in Pakistan. It is registered UNDER SECTION 42 of the Companies Ordinance, 1984 (XLVII of 1984). It was established in September 2003 by a group of concerned citizen who realized that there was a need to approach the issue of peace and development in a an integrated manner. The CPDI is a first initiative of its kind in Pakistan. It seeks to inform and influence public policies and civil society initiatives through research-based advocacy and capacity building in order to promote citizenship, build peace and achieve inclusive and sustainable development. Areas of special sectoral focus include promotion of peace and tolerance, rule of law, transparency and access to information, Budget Analysis budget watch and Legislative Watch and Development. District Toba Tek Singh 2011-12 409-B, Nazim-ud-Din Road, F-11/1, Islamabad t: +92 51 210 82 87, 211 23 15 f: +92 51 210 15 94 e: [email protected] Budget Study Centre A Company setup under Section 42 of the Companies Ordinance, 1984 www.cpdi-pakistan.org www.cpdi-pakistan.org Budget Analysis District Toba Tek Singh 2011-12 NED Centre for Peace and Development Initiatives (CPDI) would welcome Supported by: reproduction and dissemination of the contents of the report with due acknowledgments. Centre for Peace and Development Initiatives (CPDI) 409-B, Nazim-ud-Din Road, F-11/1, Islamabad t: +92 51 210 82 87, 211 23 15, +92 51 431 94 30 f: +92 51 210 15 94 email: [email protected] www.cpdi-pakistan.org Disclaimer: A Publication of Every effort has been made to ensure the accuracy of the contents of this publication. The organization does not accept any responsibility of any Budget Study Centre omission as it is not deliberate. Nevertheless, we will appreciate provision of accurate information to improve our work. Centre for Peace and Development Initiatives (CPDI) Table of Contants 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 PART -1 THE PUNJAB WEEKLY GAZETTE JULY 19, 2006 53 GOVERNMENT OF THE PUNJAB NOTIFICATION JULY 2006 No.SO(PFC)1-31/2005. The Punjab Specification and Distribution of Provincial Resources Order 2006, having been approved by the Governor of the Punjab on 01 July 2006, is hereby published as an order of the Government of the Punjab. The Punjab Specification and Distribution of Provincial Resources Order, 2006 Order of 2006 AN O R D E R to provide for the specification of the Provincial Retained Amount, the Provincial Allocable Amount and the distribution of resources amongst the local governments in the Punjab. WHEREAS, in pursuance of section 120-A of the Punjab Local Government Ordinance, 2001, the Governor of the Punjab constituted a Provincial Finance Commission to make recommendations, among other matters, as to the distribution of resources between the Provincial Government and local governments of the net proceeds of Provincial Consolidated Fund; And WHEREAS the Provincial Finance Commission has submitted its recommendations with regard to the said distribution; NOW, THEREFORE, in exercise of the powers conferred upon him under sub- section (6) of section 120-D of the Punjab Local Government Ordinance, 2001, the Governor of the Punjab is pleased to make the following Order:- 1. Short title, extent and Commencement:- (1) This Order may be called the Punjab Specification and Distribution of Provincial Resources Order, 2006. (2) It shall extend to the whole of the Punjab. (3) It shall come into force on the first day of July, 2006 and shall remain effective upto thirtieth day of June, 2009. 2. Definition: In this Order, unless there is anything repugnant in the subject or context; a) “baseline expenditure” means the actual Current Expenditure for financial 27 28 54 THE PUNJAB WEEKLY GAZETTE JULY 19, 2006 PART -1 PART -1 THE PUNJAB WEEKLY GAZETTE JULY 19, 2006 55 year 2005-06 in respect of a City District Government / District 6. Provincial Finance Commission Grant System: (1) The sums assigned to Government enhanced by 15% and in case of Tehsil Municipal every tier of local governments under Article 5 shall be distributed among the local Administration / Town Municipal Administration budgeted transfers in Financial Year 2005-06. The baseline expenditure for a Union governments through a grant system in the following ratios as specified against each Administration means actual releases made during the financial year grant: 2005-06; b) “common expenditure” includes expenditure incurred by the Provincial Sr. Share of Distribution Government on account of pension, debt servicing, charged expenditure, No. Type of Grant Provincial Distribution of (%) of subsidy and capitalization of Pension Fund and General Provident Fund; Allocable Grants in Local Grants in + 2.5% GST Governments Local Govts. c) “local government” means a local government as defined under the (reduced by share of cantonment boards) Punjab Local Government Ordinance 2001; 1. General Purpose and General Purpose d) “net proceeds of the Provincial Consolidated Fund” means the proceeds Equalization Grants for Grant for CDGs/ 89.00% of the Provincial Consolidated Fund reduced by common expenditure, City District / District 67.50% DGs Governments expected shortfalls in receipts, transfer payments of Urban Immovable Equalization Grant 11.00% Property Tax and 2.5% General Sales Tax; for CDGs/ DGs 2. General Purpose and Gen Purpose 57.28% 3. Specification of the Provincial Retained Amount:- The Provincial Retained Equalization Grants for Grant for TMAs Tehsil / Town Municipal Equalization Grant Amount shall be equal to 58.1 percent of the net proceeds of the Provincial Consolidated Administrations or Union 13.00% 14.32% for TMAs Administrations Fund in every financial year. General Purpose 28.40% Grant for UAs 4. Specification of the Provincial Allocable Amount:- (1) The Provincial 3. Development Grant for Development City District / District Grant for CDGs / 78.26% Allocable Amount shall be equal to 41.9 percent of the net proceeds of the Provincial Governments or Tehsil / 11.30% DGs Town Municipal Consolidated Fund in every financial year. Development Administrations 21.74% Grant for TMAs 4. Tied Grants for City Tied Grant for (2). The Provincial Allocable Amount shall be supplemented by the addition of 2.5% 91.00% District / District CDGs / DGs General Sales Tax in every financial year of the Award period reduced by the share, as Governments or Tehsil / 8.20% Tied Grant for may be calculated by the Provincial Government on the basis of population of Town Municipal 9.00% Administrations TMAs Cantonment Boards, for transfer to Cantonment Boards pursuant to Distribution of (2) Seventy (70) percent share out of General Purpose Grant, Equalization Grant Revenues and Grants in Aid (Amendment) Order, 2006 (Presidential Order No.1 of and Development Grant of Town Municipal Admi nistrations that are obtaining municipal 2006). services through their City District Government service infrastructure shall be given to the respective City District Government. 5. Distribution of Resources amongst local governments: The sum assigned to the local governments under Article 4 shall be distributed among the City District / 7. Criteria for distribution of Grants: The distribution of Grants amongst City District / District Governments or Tehsil / Town Municipal Administrations or Union District Governments or the Tehsil / Town Municipal Administrations or the Union Administrations as the case may be according to the following criteria:- Administrations, as the case may be, on the basis of their respective expenditure needs in the following ratios as specified against each:- a) General Purpose Grant shall be calculated on the basis of population of a City District / District Government or a Tehsil / Town Municipal City District / District Governments 83.81% Administration, as the case may be. Whereas in the case of Union Administration, the distribution of General Purpose Grant shall be on the Tehsil / Town Municipal Administrations 12.50% basis of a fixed monthly amount for every Union Administration with higher Union Administrations 3.69% allocation to Union Administrations of the City District Government Lahore. 29 30 56 THE PUNJAB WEEKLY GAZETTE JULY 19, 2006 PART -1 PART -1 THE PUNJAB WEEKLY GAZETTE JULY 19, 2006 57 8. Annual Review of Grants:- Tied Grants given to City District / District b) Equalization Grant in case of City District / District Government and Tehsil Governments and Tehsil / Town Municipal Administrations shall be subject to annual / Town Municipal Administration shall be calculated on the basis of fiscal review by the Provincial Finance Commission. gap between respective baseline expenditure and respective share under General Purpose Grant. Any amount left under the equalization grant after 9. The inter se distribution of resources for City District Governments and equalization has taken place shall be distributed on the basis of population District Governments__ (1) The inter se shares amongst City District / District amongst City District / District Governments or Tehsil / Town Municipal Governments excluding Tied Grants for Financial Year 2006-07 as laid out in Article 6 Administrations, as the case may be. and 7 is given in Schedule-A. c) Development Grant: (2) In financial years 2007-08 and 2008-09, the share of City District / District i) The City District Governments and the District Governments shall Governments shall be calculated on the basis of percentages fixed in articles 5 and 6 be provided Development Grant calculated on the basis of their and shall be distributed among the City District / District Governments as per shares respective population and Index of Under Development prepared from determined for financial year 2006-07 under article 9(1) above. Tied Grants shall be Multiple Indicator Cluster Survey (MICS) data, with both having equal distributed in subsequent years subject to annual review by the Provincial Finance weight.
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