Budget Analysis. District Jhelum Budget Study Centre

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1 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 watch and Legislative Watch and Development. Budget Analysis District Jhelum B, Nazim-ud-Din Road, F-11/1, Islamabad t: , f: e: info@cpdi-pakistan.org A Company setup under Section 42 of the Companies Ordinance, Budget Study Centre

2 Budget Analysis District Jhelum NED Centre for Peace and Development Initiatives (CPDI) would welcome 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: , , f: Disclaimer: Every effort has been made to ensure the accuracy of the contents of this publication. The organization does not accept any responsibility of any omission as it is not deliberate. Nevertheless, we will appreciate provision of accurate information to improve our work. Supported by: A Publication of Budget Study Centre Centre for Peace and Development Initiatives (CPDI)

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15 23 24 PART -1 THE PUNJAB WEEKLY GAZETTE JULY 19, 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 subsection (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, (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, Definition: In this Order, unless there is anything repugnant in the subject or context; a) baseline expenditure means the actual Current Expenditure for financial

16 THE PUNJAB WEEKLY GAZETTE JULY 19, 2006 PART -1 PART -1 THE PUNJAB WEEKLY GAZETTE JULY 19, year in respect of a City District Government / District Government enhanced by 15% and in case of Tehsil Municipal Administration / Town Municipal Administration budgeted transfers in Financial Year The baseline expenditure for a Union Administration means actual releases made during the financial year ; b) common expenditure includes expenditure incurred by the Provincial Government on account of pension, debt servicing, charged expenditure, subsidy and capitalization of Pension Fund and General Provident Fund; c) local government means a local government as defined under the Punjab Local Government Ordinance 2001; d) net proceeds of the Provincial Consolidated Fund means the proceeds of the Provincial Consolidated Fund reduced by common expenditure, expected shortfalls in receipts, transfer payments of Urban Immovable Property Tax and 2.5% General Sales Tax; 3. Specification of the Provincial Retained Amount:- The Provincial Retained Amount shall be equal to 58.1 percent of the net proceeds of the Provincial Consolidated Fund in every financial year. 4. Specification of the Provincial Allocable Amount:- (1) The Provincial Allocable Amount shall be equal to 41.9 percent of the net proceeds of the Provincial Consolidated Fund in every financial year. (2). The Provincial Allocable Amount shall be supplemented by the addition of 2.5% General Sales Tax in every financial year of the Award period reduced by the share, as may be calculated by the Provincial Government on the basis of population of Cantonment Boards, for transfer to Cantonment Boards pursuant to Distribution of Revenues and Grants in Aid (Amendment) Order, 2006 (Presidential Order No.1 of 2006). 5. Distribution of Resources amongst local governments: The sum assigned to the local governments under Article 4 shall be distributed among the City District / District Governments or the Tehsil / Town Municipal Administrations or the Union Administrations, as the case may be, on the basis of their respective expenditure needs in the following ratios as specified against each:- City District / District Governments 83.81% Tehsil / Town Municipal Administrations 12.50% Union Administrations 3.69% 6. Provincial Finance Commission Grant System: (1) The sums assigned to every tier of local governments under Article 5 shall be distributed among the local governments through a grant system in the following ratios as specified against each grant: Sr. No. Type of Grant 1. General Purpose and Equalization Grants for City District / District Governments 2. General Purpose and Equalization Grants for Tehsil / Town Municipal Administrations or Union Administrations 3. Development Grant for City District / District Governments or Tehsil / Town Municipal Administrations 4. Tied Grants for City District / District Governments or Tehsil / Town Municipal Administrations Share of Provincial Allocable + 2.5% GST (reduced by share of cantonment boards) 67.50% 13.00% 11.30% 8.20% Distribution of Grants in Local Governments General Purpose Grant for CDGs/ DGs Equalization Grant for CDGs/ DGs Gen Purpose Grant for TMAs Equalization Grant for TMAs General Purpose Grant for UAs Development Grant for CDGs / DGs Development Grant for TMAs Tied Grant for CDGs / DGs Tied Grant for TMAs Distribution (%) of Grants in Local Govts % 11.00% 57.28% 14.32% 28.40% 78.26% 21.74% 91.00% 9.00% (2) Seventy (70) percent share out of General Purpose Grant, Equalization Grant and Development Grant of Town Municipal Admi nistrations that are obtaining municipal services through their City District Government service infrastructure shall be given to the respective City District Government. 7. Criteria for distribution of Grants: The distribution of Grants amongst City District / District Governments or Tehsil / Town Municipal Administrations or Union Administrations as the case may be according to the following criteria:- a) General Purpose Grant shall be calculated on the basis of population of a City District / District Government or a Tehsil / Town Municipal Administration, as the case may be. Whereas in the case of Union Administration, the distribution of General Purpose Grant shall be on the basis of a fixed monthly amount for every Union Administration with higher allocation to Union Administrations of the City District Government Lahore.

17 THE PUNJAB WEEKLY GAZETTE JULY 19, 2006 PART -1 PART -1 THE PUNJAB WEEKLY GAZETTE JULY 19, b) Equalization Grant in case of City District / District Government and Tehsil / Town Municipal Administration shall be calculated on the basis of fiscal gap between respective baseline expenditure and respective share under General Purpose Grant. Any amount left under the equalization grant after equalization has taken place shall be distributed on the basis of population amongst City District / District Governments or Tehsil / Town Municipal Administrations, as the case may be. c) Development Grant: i) The City District Governments and the District Governments shall be provided Development Grant calculated on the basis of their respective population and Index of Under Development prepared from Multiple Indicator Cluster Survey (MICS) data, with both having equal weight. ii) The Tehsil Municipal Administrations and Town Municipal d) Tied Grant: Administrations shall be provided Development Grant calculated on the basis of their respective total population and Urban Population with both having equal weight. i) The City District Governments and the District Governments shall be provided Tied Grants for Education and Health Sectors in accordance with the following criteria: Education Component: Performance: 40% Population: 60% Health Component: Population: 70% Health Deprivation Index*: 30% * Based on Index of Under Development prepared from Multiple Indicator Cluster Survey (MICS) and Punjab Economic Research Institute (PERI) data in case of Devolved Social Services Programme. ii) The Tehsil Municipal Administrations and Town Municipal Population: 70% Administrations shall be provided Tied Grant which will be distributed as follows: Water and Sanitation Index * : 30% * Based on Multiple Indicator Cluster Survey (MICS) for the district in which the TMAs is located. 8. Annual Review of Grants:- Tied Grants given to City District / District Governments and Tehsil / Town Municipal Administrations shall be subject to annual review by the Provincial Finance Commission. 9. The inter se distribution of resources for City District Governments and District Governments (1) The inter se shares amongst City District / District Governments excluding Tied Grants for Financial Year as laid out in Article 6 and 7 is given in Schedule-A. (2) In financial years and , the share of City District / District Governments shall be calculated on the basis of percentages fixed in articles 5 and 6 and shall be distributed among the City District / District Governments as per shares determined for financial year under article 9(1) above. Tied Grants shall be distributed in subsequent years subject to annual review by the Provincial Finance Commission. 10. Grant in Aid to Certain District Governments: Annual grant in aid shall be given out of the Provincial Retained Amount to the following District Governments for the two financial years commencing from the first day of July, 2006 equal to the amounts specified against each: District Government Grant in Aid (Rs. in million) Chakwal Hafizabad Rahim Yar Khan Sialkot Vehari The inter se distribution of resources for Tehsil Municipal Administrations and Town Municipal Administrations:- (1) The inter se distribution of resources amongst Tehsil Municipal Administrations, Town Municipal Administration and City District Governments in case of Town Municipal Administrations which are being provided services through the integrated infrastructure of a City District Government for Financial Year as laid out in Article 5, 6 and 7 is given in Schedule-B excluding Tied Grants. (2) In financial year and , the share of Tehsil / Town Municipal Administrations shall be calculated on the basis of percentages fixed in articles 5 and 6 and shall be divided between Tehsil / Town Municipal Administrations as per shares determined for each Tehsil / Town Municipal Administration in financial year in section 11(1) above.

18 THE PUNJAB WEEKLY GAZETTE JULY 19, 2006 PART -1 PART -1 THE PUNJAB WEEKLY GAZETTE JULY 19, The Distribution of resources for Union Administrations:- The inter se distribution of resources between Union Administrations for Financial Year is given at Schedule-C. LT. GEN. KHALID MAQBOOL (RETD.) GOVERNOR OF THE PUNJAB Schedule-A INTER SE SHARES OF DISTRICT GOVERNMENTS UNDER PFC TO (Excluding Tied Grants) Sr # District Percentage Share 1 Attock 2.15% 2 Bahawalnagar 3.24% 3 Bahawalpur 3.18% 4 Bhakkar 1.88% 5 Chakwal 1.93% 6 D G Khan 2.59% 7 Faisalabad 6.64% 8 Gujranwala 4.15% 9 Gujrat 2.53% 10 Hafizabad 1.17% 11 Jhang 3.73% 12 Jhelum 1.47% 13 Kasur 3.09% 14 Khanewal 2.80% 15 Khushab 1.60% 16 Lahore 7.62% 17 Layyah 1.93% 18 Lodhran 1.67% 19 Mandi Bahauddin 1.52% 20 Mianwali 1.83% 21 Multan 3.95% 22 Muzaffargarh 3.44% 23 Nankana Sahib 1.92% 24 Narowal 2.05% 25 Okara 2.90% 26 Pakpattan 1.79% 27 Rahimyar Khan 4.00% 28 Rajanpur 1.61% 29 Rawalpindi 4.05% 30 Sahiwal 2.53% 31 Sargodha 3.90% 32 Sheikhupura 2.77% 33 Sialkot 3.31% 34 Toba Tek Singh 2.30% 35 Vehari 2.74% Total % Schedule-B INTER SE SHARES OF TEHSIL MUNICIPAL ADMINISTRATIONS UNDER PFC TO (Excluding Tied Grants) SR# District name Tehsil.name Percentage Share 1 Attock Attock City 0.45% 2 Attock Hasanabdal 0.19% 3 Attock Fateh Jang 0.24% 4 Attock Jand 0.25% 5 Attock Pindi Gheb 0.22% 6 Attock Hazro 0.28% 7 Bahawalnagar Bahawal Nagar 0.64% 8 Bahawalnagar Fortabbas 0.32% 9 Bahawalnagar Chishtian 0.58% 10 Bahawalnagar Minchinabad 0.40% 11 Bahawalnagar Haroonabad 0.45% 12 Bahawalpur Bahawalpur City 0.95% 13 Bahawalpur Bahawalpur Sadar 0.39% 14 Bahawalpur Ahmadpur 0.82% 15 Bahawalpur Hasilpur 0.37% 16 Bahawalpur Khairpur Tamiwali 0.21% 17 Bahawalpur Yazman 0.45% 18 Bhakkar Bhakkar 0.49% 19 Bhakkar Darya Khan 0.28% 20 Bhakkar Kallur kot 0.26% 21 Bhakkar Mankera 0.19% 22 Chakwal Chakwal 0.55% 23 Chakwal Choa Saidan Shah 0.14% 24 Chakwal Talagang 0.43% 25 Chakwal Kalar Kahar 0.13% 26 DG Khan D G Khan 1.32% 27 DG Khan D Excluded Area 0.24% 28 DG Khan Taunsa 0.41%

19 THE PUNJAB WEEKLY GAZETTE JULY 19, 2006 PART -1 PART -1 THE PUNJAB WEEKLY GAZETTE JULY 19, SR# District name Tehsil.name Percentage Share Faisalabad Transfer to CDG Faisalabad 5.14% 29 Faisalabad Faisalabad City (Lylpur Town) 0.52% 30 Faisalabad Jinnah Town 0.55% 31 Faisalabad Madina Town 0.57% 32 Faisalabad Chak Jhumra 0.29% 33 Faisalabad Iqbal Town (Sadar) 0.56% 34 Faisalabad Jaranwala 1.19% 35 Faisalabad Samundri 0.58% 36 Faisalabad Tandlianwala 0.61% Gujranwala Transfer to CDG Gujranwala 2.22% 37 Gujranwala Khayali Shahpur 0.24% 38 Gujranwala Qila Didar Singh Town 0.26% 39 Gujranwala Nandi pur Town 0.21% 40 Gujranwala Aroop Town 0.24% 41 Gujranwala Kamoki 0.51% 42 Gujranwala Naushera Virkan 0.47% 43 Gujranwala Wazirabad 0.79% 44 Gujrat Gujrat 1.34% 45 Gujrat Kharian 0.91% 46 Gujrat Sarai Alamgir 0.20% 47 Hafizabad Hafizabad 0.59% 48 Hafizabad Pindi Bhattian 0.41% 49 Jehlum Jehlum City 0.49% 50 Jehlum Pind Dadan Khan 0.30% 51 Jehlum Sohawa 0.19% 52 Jehlum Dina 0.21% 53 Jhang Chiniot 1.15% 54 Jhang Jhang 1.43% 55 Jhang Shorkot 0.43% 56 Jhang Ahmed Pur Sial 0.34% 57 Kasur Kasur 1.41% 58 Kasur Chunnian 0.66% 59 Kasur Pattoki 0.73% SR# District name Tehsil.name Percentage Share 60 Khanewal Khanewal 0.65% 61 Khanewal Jahanian 0.28% 62 Khanewal Kabirwala 0.75% 63 Khanewal Mian Channu 0.70% 64 Khushab Khushab 0.88% 65 Khushab Noorpur Thal 0.19% Lahore Transfer to CDG Lahore 8.85% 66 Lahore Aziz Bhatti Town 0.31% 67 Lahore Data Ganj Baksh Town 0.44% 68 Lahore Allama Iqbal Town 0.45% 69 Lahore Nishtar Town 0.43% 70 Lahore Ravi Town 0.46% 71 Lahore Shalimar Town 0.39% 72 Lahore Wahga Town 0.51% 73 Lahore Gulberg Town 0.36% 74 Lahore Samanabad Town 0.45% 75 Layyah Choubara 0.47% 76 Layyah Karor 0.41% 77 Layyah Layyah 0.68% 78 Lodhran Lodhran 0.54% 79 Lodhran Karor Pacca 0.42% 80 Lodhran Dunya Pur 0.38% 81 MB Din Mandi Bahauddin 0.55% 82 MB Din Malik wal 0.34% 83 MB Din Phalia 0.44% 84 Mianwali Isakhel 0.35% 85 Mianwali Mianwali 0.62% 86 Mianwali Piplan 0.32% Multan Transfer to CDG Multan 2.51% 87 Multan Jalalpur Pirwala 0.40% 88 Multan Shah Ruknay Alam Town 0.28% 89 Multan Mumtaz abad Town 0.26% 90 Multan Sher Shah Town 0.25% 91 Multan Bosson Town (Sadar) 0.29% 92 Multan Shujabad 0.48%

20 THE PUNJAB WEEKLY GAZETTE JULY 19, 2006 PART -1 PART-1 THE PUNJAB WEEKLY GAZETTE JULY 19, SR# District name Tehsil.name Percentage Share 93 Muzaffargarh Alipur 0.44% 94 Muzaffargarh Jatoi 0.50% 95 Muzaffargarh Kot Addu 0.92% 96 Muzaffargarh Muzaffargarh 1.12% 97 Nankana Sahib Nankana 0.77% 98 Nankana Sahib Safdarabad 0.38% 99 Nankana Sahib Shahkot 0.22% 100 Nankana Sahib Sangla Hill 0.21% 101 Narowal Narowal 0.72% 102 Narowal Shakar Garh 0.71% 103 Okara Okara 1.05% 104 Okara Depalpur 1.20% 105 Okara Renala Khurd 0.38% 106 Pakpattan Pakpattan 0.78% 107 Pakpattan Arif Wala 0.68% 108 Rahimyar Khan Khanpur 0.80% 109 Rahimyar Khan Liaquatpur 0.77% 110 Rahimyar Khan Rahim Yar Khan 1.21% 111 Rahimyar Khan Sadiqabad 0.90% 112 Rajanpur Rajanpur 0.48% 113 Rajanpur Jampur 0.55% 114 Rajanpur Rojhan 0.23% Rawalpindi Transfer to CDG Rawalpindi 1.79% 115 Rawalpindi Rawalpindi City (Rawal Town) 0.77% 116 Rawalpindi Gujar Khan 0.56% 117 Rawalpindi Kahuta 0.34% 118 Rawalpindi Murree 0.20% 119 Rawalpindi Kotli Sattian 0.11% 120 Rawalpindi Taxila 0.52% 121 Rawalpindi Kalar Saydian 0.17% 122 Rawalpindi Potohar Town 0.56% SR# District name Tehsil.name Percentage Share 125 Sargodha Sargodha 1.37% 126 Sargodha Bhalwal 0.94% 127 Sargodha Shahpur 0.32% 128 Sargodha Sahiwal Sargodha 0.28% 129 Sargodha Silanwali 0.28% 130 Sargodha Kot Momin 0.39% 131 Sheikhupura Feroz Wala 0.82% 132 Sheikhupura Sheikupura 1.55% 133 Sheikhupura Sharakpur 0.17% 134 Sheikhupura Mureedke 0.52% 135 Sialkot Daska 0.67% 136 Sialkot Pasroor 0.69% 137 Sialkot Sialkot 1.72% 138 Sialkot Sambrial 0.34% 139 TT Singh Gojra 0.59% 140 TT Singh Toba Tek Singh 0.69% 141 TT Singh Kamalia 0.61% 142 Vehari Burewala 0.85% 143 Vehari Vehari 0.75% 144 Vehari Mailsi 0.80% Total % INTER SE RESOURCE DISTRIBUTION AMONGST UNION ADMINISTRATIONS Category of UA Monthly allocation per UA 1 Urban UAs of CDG Lahore 216,000 2 Other UAs 91,000 Schedule-C 123 Sahiwal Sahiwal 1.24% 124 Sahiwal Chichawatni 0.88%

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