M RAFIQUE GORAYA

LAHORE: The Punjab government has constituted 20 member provincial Finance Commission to formulate a formula for the distribution of resources among the districts to ensure smooth functioning of the local governments and to minimize the poverty and income inequalities among the districts in the province.

Provincial Minister for Finance and Minister for Local government and Community Development is its Chairperson. The other members of the commission include Members Punjab Assembly Bushra Anjum Butt, Sardar Ahmed Ali Khan, Dr. Syed Waseem Akhter, Ch. Awais Qasim, Senior Administrator Akhuwat Dr. Amjad Saqib, Mayor Lahore Mubashir Javed, Secretary Finance Hamid Yaqoob Sheikh, Special Secretary Usman Chaudhary, Secretary Local Government Aslam Kamboh, Secretary Education Dr Allah Bakhsh Malik, Public Financial Management Advisor Faisal Rasheed, economists of LUMS University Dr Zafar Iqbal and Ali Cheema, Chairman Faisalabad Zahid Nazir, Javed Afzal and Chairman Sheikhupura Ahmed Anwar.

Addressing the first meeting of the new PFC, Provincial Minister for Finance Dr Ayesha Ghaus Pasha said the local bodies system is of key importance for providing facilities to the people at their doorstep; therefore, Punjab government desires to transfer resources to local bodies’ representatives as soon as possible.

She said in view of limited resources of provincial governments, it is necessary that local governments should increase their own recourses and pay attention to resource mobilization.

On a complaint of decrease of powers of local representatives, the Minister said the powers will also be reviewed for increasing resources as self-sufficiency of local government is necessary for reducing burden on the provincial government.

Secretary Finance Hamid Sheikh apprised the members of features of interim finance commission and distribution formulas. Dr Ayesha Ghaus Pasha told the commission that next award would be evolved while keeping in view the need, population, school going children, fertility and rate of poverty.

The Minister formed a technical committee headed by MPA Makhdoom Hashim Jawan Bakht for reconstitution of formula in the light of unanimous proposals of the commission and assured that the room for change will be kept in the award in case of change in facts and figures, needs and results of the recent population census.

It may be added that the provincial govt envisages the share of ‘Allocable Amount’ for local government functions to be increased to 44% of Net Provincial Consolidated Fund (NPCF) resulting in 42% increase in resources available for local service delivery functions.

The resources flowing to local governments would comprise two components, i.e. formula-based component (37.5% of NPFC) and Grants for Special Purposes (6.5% of NPCF).

Shares of local governments are: District Education Authorities (66.9%), District Health Authorities (16.3%), Local Councils (12.8%) and Union Councils (4%) ensuring adequate resources for salary and non-salary purposes as well as development needs.