Discretionary quota of CM, finance minister to be axed

District level development

PESHAWAR: The Provincial Finance Commission has decided to make a drastic decrease in discretionary quota of chief minister and finance minister for district development.

The five times reduction in development funds would squeeze the quota of the chief minister from 10 percent to only two percent and that of the provincial finance minister from five percent to mere one percent, says an official statement.

The decision with consensus recommendation of the members of the commission would be implemented in next financial year following approval from the chief minister.The decision was taken at a meeting of the PFC, chaired by Provincial Finance Minister Muzaffar Said at the Civil Secretariat, said a handout.

The PFC members, district and tehsil nazims, secretaries of finance, local government and law, Senior Minister for Local Government Inayatullah Khan were also present.  Muzaffar Said said that for the first time in the province’s history, the provincial government was minimising own discretionary powers.

He said that the KP government was pursuing the policy of development at the grassroots level and empowering the masses instead of concentrating resources in the ruling elite. The finance minister also approved another consensus recommendation of the commission to distribute the district development funds among the local governments this year according to the old PFC formula so that the ongoing development process is not hampered and funds’ utilisation could be ensured on fast track basis.

Under the old PFC formula of 60 percent on population, 20 percent underdevelopment and 20 percent lag in infrastructure, the districts would receive funds of Rs30,274 million wherein village and neighbourhood councils would be given funds to the tune of Rs13,100 million while Rs8,550 million each would be transferred to tehsil and district councils out of the provincial resources to be spent on development schemes through respective councils.

Muzaffar Said directed the authorities to ensure implementation of the decision about judicious distribution of funds under an old formula soon after getting nod of the chief minister and effective vigilance over the expenditures on development process. 

He asked for enacting the new PFC formula of distribution of 50 percent funds on population basis, 25 percent on poverty, 20 percent on lag in infrastructure and 5 percent on local revenue basis soon after the start of next fiscal year so that administrative problems are solved and hurdles removed to get positive results of the funds.