District Budget Rules

8/2/2019 District Budget Rules

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Budget Rules February 17,2003

[SBNP] DISTRICT GOVERNMENT AND TEHSIL MUNICIPALADMINISTRATION (BUDGET) RULES, 2002

In exercise of the powers conferred under Section 191(1), of the [SBNP] LocalGovernment Ordinance, 2001 (Ordinance No ( ) of 2001), the Governor of

[SBNP] is pleased to make the following Rules-

PART I

PRELIMINARY

Short title, applicability and commencement.-

(1) These Rules may be called the [SBNP] District Government and TehsilMunicipal Administration (Budget) Rules, 2002.

(2)These shall apply to all local governments except UnionAdministrations and Union Councils.

(3)They shall come into force at once.

Definitions.-

(1) In these Rules, unless there is anything repugnant in the subject orcontext-

(i) Accounts Officer means the head of the local governmentAccounts Office;

(ii) actuals means the actual figures of receipts or expenditurerelating to a financial year;

(iii) administrative approval means the concurrence and formalacceptance of the Budget and Development Committee tothe incurring of the expenditure proposed in the projectproposal and amounts to an order to execute the proposalsubject to the approval by the Council;

(iv) Annual Budget Statement" means the statement of estimated

receipts into, the estimated expenditure from, the localgovernment fund required to be laid before the Councilbefore the commencement of that year;

(v) Annual Development Programme means the documentsubmitted alongwith the Annual Budget Statement, whichincludes the details of development projects included in thebudget;

(vi) appropriation means an allocation of funds to an office on thebasis of the Schedule of Authorized Expenditure;

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(vii) Budget means a statement of the estimated receipts andexpenditure of the local government for a financial year;

(viii) Budget Calendar means the calendar given in the SecondSchedule;

(ix) Budget Document means the documents specified in Part X ofVolume I of the Rules;

(x) Budget Estimate for a financial year, means in relation toexpenditure, the expenditure proposed for that year, and inrelation to receipts, the receipts expected to be realizedduring that year;

(xi) Budget Year or Financial Year means the period from July1st to June 30, both days inclusive;

(xii) Capital expenditure means the expenditure met from capitalreceipts;

(xiii) Capital receipts means receipts from sources other thanrevenue and includes-

(a) the disposal of capital assets;

(b) the sale of investments;

(c) loans; and

(d) advances and deposits.

(xiv) CCB means a Citizen Community Board as defined in theOrdinance;

(xv) "CCB official" means such official of the District Government orTehsil Municipal Administration as the case may be, towhich the project proposals are submitted by the CCBs. Forthe District Government it means the EDO CommunityDevelopment while for the Tehsil and Town MunicipalAdministration it means the Tehsil or Town Officer (Planning)

as the case may be;

(xvi) Charged expenditure means such items of expenditure asare specified in the Ordinance, which are not subject to voteof the Council;

(xvii) "Charter" means the constitution of a CCB, to be subscribed andsigned by the founder members, as herein provided. Itincludes the purposes, aims, and the mode of functioning ofa CCB;

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(xviii) Collecting Officer means the officer who is responsible forestimation and realization of receipts from the area withinhis jurisdiction designated by the Head of Offices for theoffices under his administrative control;

(xix) Current Budget means the sum of approved estimates of thecurrent expenditure for a financial year;

(xx) Current expenditure means expenditure that is notdevelopment expenditure;

(xxi) Demand for Grant means the proposal made to the Councilon the recommendation of the Nazim for withdrawal of acertain sum out of the local government fund;

(xxii) Development expenditure means any expenditure ondevelopment projects as defined in Rule 30 or any

expenditure on new construction, whether of entirely newworks or additions and alterations to existing works. It alsoincludes all repairs to newly purchased or previouslyabandoned buildings or works required for bringing theminto use and means expenditure on operations undertakento maintain in proper condition buildings and works inordinary use;

(xxiii) Development Budget means the sum of approved estimatesof development expenditure for a financial year;

(xxiv) Drawing and Disbursing Officer means the officer whoprepares estimates of expenditure and actually incursexpenditure in respect of the offices of which he is theDrawing and Disbursing Officer as appointed by therespective Head of Offices under his administrative control;

(xxv) Form means a form prescribed under these Rules;

(xxvi) "Founder Member" constitute the signatories to the Charter of aCCB which has been submitted for registration;

(xxvii) Function means an element used in the Chart ofAccounts issued by the Auditor General of Pakistan, whichprovides information on particular economic activities;

(xxviii) Grant means the amount granted by the Council, inrespect of a Demand for Grant as specified in the Scheduleof Authorized Expenditure;

(xxix) "Member of CCB" means a person whose name has beenincluded in the Register of Members;

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(xxx) Object means a Chart of Accounts element used to classify thenature of expenditure e.g. salaries, travel, transport etc;

(xxxi) Ordinance means the [SBNP] Local Government Ordinance,2001 (Ordinance No( ) of 2001);

(xxxii) Part means a part of these Rules;

(xxxiii) "Project Proposal" means the project proposal, which issubmitted by a CCB to the concerned CCB official forapproval by the Council;

(xxxiv) Re-appropriation means the transfer of savings in theappropriations of one or more units of appropriations tomeet excess expenditure anticipated under another suchunit;

(xxxv) receipt means the cash collected by a local government;

(xxxvi) "Register of CCBs" means the register to be kept at theoffices of, and maintained by, the Registration Authoritywherein the names, addresses, and specified particulars ofthe registered CCBs and their Executive members shall berecorded;

(xxxvii) "Register of members" means the register to be kept atthe designated office of a CCB, wherein the names,addresses and other specified information relating to all its

members are recorded;

(xxxviii) "Registration Authority" means the District Officer(Registration), who is declared as such by a DistrictGovernment;

(xxxix) "Responsible person" means-

(a) the chairman of a CCB;

(b) the secretary of a CCB; and

(c) any other member of a CCB who is, in writing,declared as such by any of the persons mentioned in aor b above.

(xl) Revenue receipts means the receipts from tax and non-taxrevenues. The non-tax receipts include interest, dividends,fines etc realized by a local government.

(xli) Revised estimates means the estimate of the probablereceipts or expenditure, for a financial year, framed, in the

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course of that year, with reference to the transactionsalready recorded;

(xlii) "Schedule" means a schedule to these Rules;

(xliii) Schedule of Authorized Expenditure means the scheduleprepared, after the approval by the Council of the AnnualBudget Statement or Supplementary Budget in respect of afinancial year and authenticated by the Nazim;

(xliv) "Section" means a section of the Ordinance; and

(xlv) Supplementary Budget Statement means the statement tobe laid before the Council showing the amount of theadditional expenditure estimated to be required during afinancial year, over and above the expenditure alreadyauthorized, for that year;

(xlvi) Supplementary Grant for a financial year means an amountprovided in addition to the original Grant or appropriationapproved by the Council;

(xlvii) Surrender means an amount included in the budget that isgiven back, as it shall not be spent in the financial year bythe office;

(xlviii) Technical Sanction is the sanction to a properly detailedestimate of cost of a work of construction or repair; and

(xlix) Voted expenditure means expenditure that is submitted tothe vote of the Council.

(2) Terms and expressions used but not defined in these Rules shall havethe same meaning as defined in the Ordinance.

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PART II

FUNCTIONS OF THE OFFICERS RELATING TO BUDGET

Functions of Finance and Budget Officer.-

(1) The Finance and Budget Officer shall be responsible for the coordinationof the budgetary process and for the consolidation and preparation of thebudget documents of the local government.

(2) The Finance and Budget Officer in the case of a District Governmentshall be the Executive District Officer (Finance and Planning).

(3) The Finance and Budget Officer in the case of a Tehsil MunicipalAdministration shall be the Tehsil Officer (Finance).

(4) The Finance and Budget Officer shall perform the following functions-

(i) issue the budget call letter after approval of the Nazim, whichshall include-

(a)date-wise budget calendar;

(b)instructions for preparing the budget;

(c) forms to be used in the preparation of the budget; and

(d)budget guidelines.

(ii) provide figures of available resources for formulation of budget;

(iii) examination and scrutiny of the budget proposals;

(iv) examination and scrutiny of a new expenditure;

(v) compilation and consolidation of the Budget;

(vi) communication of Grants to Drawing and Disbursing Officers;

(vii) monitoring of the budget and ensuring that funds are spent as

approved by the Council;

(viii) examination and scrutiny of proposals for Re-appropriation andSupplementary Grants;

(ix) provide financial information to the Council relating to localgovernment;

(x) submit reports on budgetary performance;

(xi) monitor the receipts and expenditure of the local government; and

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(xii) provide such other supervision and administration as may berequired from time to time in connection with or ancillary to any of theforegoing aspects of the budgetary process.

Head of Offices.-

(1) In relation to the District Government, the Head of Offices meansthe-

(i) District Coordination Officer for his office and the office ofthe Zila Nazim only;

(ii) Naib Zila Nazim for the Zila Council Secretariat; and

(iii) Executive District Officers (EDOs).

(2) In relation to Tehsil Municipal Administration, the Head of Offices

means-

(i) Tehsil Municipal Officer (TMO) for his office and the office ofthe Tehsil Nazim;

(ii) Naib Tehsil Nazim for the Tehsil Council Secretariat; and

(iii) Tehsil Officers.

(3) The Head of Offices is responsible for-

(i) all matters relating to the budget for the offices under hisadministrative control;

(ii) ensuring strict financial control;

(iii) ensuring observance of all relevant financial rules andregulations both by his own office and by sub-ordinate disbursingoffices;

(iv) ensuring that the total expenditure is kept within the limitsof authorized appropriation;

(v) ensuring that the funds allotted are spent on the activitiesfor which the money was provided;

(vi) explaining any instance of excess or financial irregularitythat may be brought to notice as a result of audit scrutiny orotherwise;

(vii) ensuring that adequate provisions exist for systematicinternal checks to prevent and detect errors and irregularities inthe financial proceedings of his subordinate offices;

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(viii) ensuring that the internal controls are effectively applied;

(ix) guarding against waste and loss of public money;

(x) ensuring that satisfactory arrangements exist for systematicand proper maintenance of office accounts and other ancillaryrecord;

(xi) ensuring that the auditors are afforded all reasonablefacilities in the discharge of their functions and furnished with thefullest possible information for which they may ask;

(xii) ensuring that no such information or any books or otherdocuments to which the Auditor General of Pakistan has astatutory right of access may be withheld; and

(xiii) coordination with the Finance and Budget Officer.

5. Collecting Officer (CO).-

(1) The functions of the Collecting Officer are-

(i) preparing the estimates of receipts under his jurisdiction;

(ii) all matters relating to estimation, realization, and depositsof receipts; and

(iii) coordination with the concerned higher level officials.

(2) The Collecting Officer shall be designated as such by therespective Head of Offices for the offices under his administrative control.

6. Drawing and Disbursing Officer (DDO).-

(1) The functions of the Drawing and Disbursing Officer are-

(i) preparation of the estimates of expenditure for theoffices under his jurisdiction;

(ii) incurring of expenditure as per rules;

(iii) coordination with the concerned higher levelofficials; and

(iv) monitoring his budget.

(2) The Drawing and Disbursing Officer shall be designated as such bythe respective Head of Offices under his administrative control.

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7. Planning Officer (PO).-

(1) Planning Officer means in relation to-

(i) District Government, the Executive District Officer (Financeand Planning); and

(ii) Tehsil Municipal Administration, the Tehsil Officer (Planning).

(2) The functions of the Planning Officer are-

(i) overall planning of development works of the localgovernment;

(ii) monitoring of development projects; and

(iii) consolidation of Annual Development Programme.

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PART III

BUDGET CLASSIFICATION AND CALL LETTER

8. Budget.-

The budget is a statement of receipts and expenditure during a financial year of alocal government and thus reflects the local government policies, priorities,financial strategy and operational plans in financial terms.

The Nazim shall ensure that the needs of the disadvantaged groups are reflected inthe priorities and gender issues are adequately addressed.

9. Budget Classification.-

(1) The Budget shall be prepared in accordance with Chart of Classification ofaccounts issued by the Auditor General of Pakistan.

(2) The expenditure shall be classified into Development or Currentexpenditure.

(3) The Development budget shall be divided into two parts, namely-

(i) Citizen Community Board Development budget; and

(ii) local government development (Non-CCB) budget.

(4) The receipts shall be classified as follows-

(i) major head;

(ii) minor head; and

(iii) detailed receipt head.

(5) Expenditure shall be classified as follows-

(i) function classification; and

(ii) object classification.

(6) Functional classification shall be as follows-

(i) major function;

(ii) minor function; and

(iii) detailed function.

(7) Object classification shall be as follows-

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(i) major object;

(ii) minor object; and

(iii) detailed object.

(8) The budget of the Council and its secretariat shall be reflected separatelyin the Budget. A separate Drawing and Disbursing Officer shall bedesignated for the Council budget.

10. Public Account.-

(1) Every local government shall maintain a Public Account.

(2) The estimates relating to Public Account shall be prepared by theFinance and Budget Officer on receipt of the figures from the concernedoffices.

(3) The withdrawals from the Public Account shall be for the purposefor which funds were deposited.

11. Budget call letter.-

The budget call letter shall be finalized after consultation with the relevantstakeholders.

Explanation: The expression stakeholders include Councils, electedrepresentatives, general public, women's organization, private sector,Citizen Community Boards, District Mushavirat Committee, Non-Governmental Organizations, Community Based Organizations, andother organizations.

The priorities identified by a Council shall be forwarded to the Nazims as under-

(i) the respective Council of the concerned local government mayprovide their requirements to the Nazim;

(ii) the Tehsil Councils and Union Councils may provide theirrequirements relating to district functions to the Zila Nazim;

(iii) the Zila Council and Union Councils may provide theirrequirements to Tehsil Nazim relating to Tehsil functions; and

(iv) the Zila Council and Tehsil Councils may provide theirrequirements to Union Nazim relating to Union functions.

(3) The Finance and Budget Officer shall consolidate the informationreceived from the stakeholders including the priorities identified by theCouncils and the local government offices in the draft budget call letterand submit it to the Nazim for approval.

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(4) After approval by the Nazim, the Finance and Budget Officer shall issueto each Head of Offices the budget call letter, including the budgetcalendar.

(5) The Budget and Finance Officer shall issue the classification of projects

and other guidelines to the CCBs on approval of the budget call letter bythe Nazim.

(6) Each Head of Offices shall prepare its budget in accordance with thebudget call letter approved by the Nazim.

(7) The timeframe provided in the budget calendar shall be followed byeach office of the local government.

(8) Filled forms shall be submitted by the Drawing and Disbursing Officers,Collecting Officers and Heads of Offices in accordance with thetimeframe specified in the budget calendar to the Finance and Budget

Officer.

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PART IV

ESTIMATES OF RECEIPTS

12. Finance and Budget Officer to supply receipt Forms to Collecting

Officers.-

The Finance and Budget Officer shall, each year alongwith the budgetcall letter, supply to the Collecting Officers Forms BDR-1 to 4 relating toreceipts as provided in the First Schedule, in which the estimates ofreceipts for the coming financial year shall be prepared.

13. Instructions to Collecting Officers.-

The Collecting Officers shall while preparing their estimates of receiptsbe guided by the following-

(i) estimates of receipts are prepared diligently and accurately;

(ii) in relation to revised estimates, shall take into considerationthe actual receipts during the first eight months of the financialyear and also consider the figures of the previous financial year;

(iii) all material reasons, facts and circumstances relied upon inadopting the figures for the Revised Estimates for the currentfinancial year shall be recorded clearly;

(iv) the reasons for adopting the figures for the budget

estimates of the coming financial year are clearly explained; and

(v) the receipts shall cover all sources including fiscal transfersfrom provincial government.

14. Revenue Base Review.-

(1) In order to ascertain and realize the revenue potential of a localgovernment, each Collecting Officer shall conduct a review of therevenue sources and the required information shall be prepared in FormBDR-3.

(2) The objections and suggestions from the public and vetting by theGovernment shall be obtained after the taxation proposals have beendiscussed by the Council while considering the Draft Budget presented by theNazim in April each year.

(3) The timeframe to be followed for finalizing the taxation proposals isspecified in the budget calendar provided in the Second Schedule.

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15. Collecting Officer to Forward Receipt Forms to Head of Offices.-

After duly completing the receipt forms, the Collecting Officer shall signthe same and retain one copy for record in his office, and forward therest to the Head of Offices. The explanatory notes to the receipt formsshall be provided in Form BDR-5.

16. Head of Offices to scrutinize and consolidate estimates.-

(1) On receiving the estimates of receipts from the Collecting Officer, eachHead of Offices concerned shall finalize and consolidate the figuresfurnished by his Collecting Officers.

(2) Each Head of Offices shall prepare a note explaining any differencesbetween-

(i) the revised estimates proposed for the current financial year, andthe budget estimates for the current financial year; and

(ii) the budget estimates proposed for the next financial year, and therevised estimates proposed for the current financial year.

(3) A copy of the duly completed forms and the explanatory note preparedin Form BDR-5 shall be forwarded to the Finance and Budget Officer.

17. Administrative responsibility for accuracy of Figures and

Estimates.-

The Heads of Offices and the Collecting Officers shall be responsible forthe correctness of all figures supplied to the Finance and Budget Officer.

18. Consolidation of receipts by the Finance and Budget Officer.-

Upon receipt by the Finance and Budget Officer of the estimates ofreceipts from the Heads of Offices, the Finance and Budget Officer shallconsolidate such estimates. The estimates of receipts shall beincorporated in the budget documents and submitted to the Budget andDevelopment Committee for finalization prior to submission to the

Council.

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PART V

ESTIMATES OF CURRENT EXPENDITURE

19. Preparation of Estimates of Current expenditure.-

(1) The estimates of Current Expenditure shall be prepared by Drawing andDisbursing Officers (DDOs) in accordance with the budget guidelinesaccording to which directions may be provided by the respective Headof Offices.

(2) The estimates of expenditure shall be provided on the Forms BDC-1 to 7relating to Current expenditure.

20. Instructions for preparation of estimates of Currentexpenditure.-

The following guidelines shall be followed for purposes of determiningthe Estimates of Expenditure-

(i) provision for each expenditure shall be included under theappropriate function and object head;

(ii) provision for any foreseeable expenditure shall be included whileensuring that each provision is restricted to the absolute minimumnecessary sum;

(iii) each Drawing and Disbursing Officer shall develop the most

realistic and sound estimates;

(iv) the estimates for each financial year shall provide only forsuch expenditure as are to be actually paid during the nextfinancial year;

(v) provision should not be made in the estimates for postswhich it has been decided to leave unfilled;

(vi) a performance incentive bonus for employees shall beincluded in the Budget; and

(vii) the budget shall include provision for honoraria andallowances for Nazims, Naib Nazims and Councilors.

21. Submission of Estimates of expenditure by Drawing andDisbursing Officer to Head of Offices.-

After completing the forms the Drawing and Disbursing Officer (DDO)shall retain one copy for record in his office and forward the originaltogether with an explanatory note on BDC-8 showing the reasons for hisproposal to the Head of Offices.

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22. Heads of Offices to consolidate expenditure estimates.-

(1) Each Head of Office shall develop a plan according to the priorities laidout in the budget call letter for the respective offices under his administrativecontrol.

(2) The plan referred to in sub-rule (1) shall include all technicalrequirements taking into account the weaknesses of the past gaps and theproposals with detailed workings including the following on Forms BSF 1 to BSF3-

(i) areas where the community can and is likely to participateand the proposed classification of projects for CCBs;

(ii) the state of facilities and services already available;

(iii) problems and issues relating to the implementation of the

current years budget;

(iv) activities proposed for the next years Current budget;

(v) new activities proposed for the next year including staffingrequirements and establishment;

(vi) status of on going development projects; and

(vii) proposed sectors and projects for the next yearsdevelopment budget based on the technical assessment by the

concerned offices.

(3) Upon receipt of expenditure estimates, the Head of Offices shall reviewand finalize the estimates of expenditure and then send the same to Financeand Budget Officer.

23. Consolidation of expenditure estimates.-

(1) The Finance and Budget Officer shall consolidate the estimates receivedfrom each Head of Offices.

(2) The estimates shall be submitted to the Council as part of the budget

documents after finalization by the Budget and DevelopmentCommittee.

(3) The current expenditure shall include the new expenditure.

24. Other Statements.-

The details of budget shall include-

(i) Statement of investment if any as per Form BDO-1;

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(ii) Statement of General Provident Fund as per Form BDO-2;and

(iii) Statement of outstanding liabilities and loans, if any, onForm BDO-5.

25. Calculations of Establishment Charges.-

(1) Form BDO-3 shall be used for calculating the salaries of theofficials.

(2) Form BDO-4 shall be used for calculating the allowances ofthe officials.

(3) Forms BDO-3 and BDO-4 shall be for the internal use of theoffices and shall not be submitted with any of the budget documents.

26. Conditional Grants.-

All conditional grants shall be budgeted and utilized in accordance withthe conditions of the grant.

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PART VI

STATEMENT OF NEW EXPENDITURE (CURRENT BUDGET)

27. New expenditure.-

(1) Expenditure on new activities shall include the recurring costs of thedevelopment projects to be completed in the next financial year andexpenditure relating to new current activities. The expenditure is mainlyon personnel and purchase of durable goods.

(2) The new expenditure shall be provided with the budget documents as aStatement of New Expenditure (SNE).

28. New Current expenditure Proposals.-

(1) Each Drawing and Disbursing Officer shall for the nextfinancial year send to the Head of Offices, all proposals involving newcurrent expenditure along with their estimates in Forms BDC-1 to 7.

(2) An explanatory note justifying the new proposals shall beprovided in Form BDC-8.

(3) The details of the recurring expenditure of the development projects tobe completed during the budget year, shall also be communicated bythe Drawing and Disbursing Officer (DDOs) to the concerned Head ofOffices.

29. Instructions regarding new expenditure.-

(1) The respective Drawing and Disbursing Officer (DDO), while preparingany proposal for new current expenditure shall ensure that-

(i) all proposals specify the;

(a) number of required personnel;

(b) rates of remuneration; and

(c) duration of employment of any proposed officials.

(ii) all relevant revenue implications have been described, quantifiedand included in the estimates of receipts; and

(iii) detail of expenditure as Purchase of Durable Goods have beenspecified.

(2) Drawing and Disbursing Officers shall forward the estimates of newexpenditure separately to the Head of Offices alongwith the currentbudget.

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(3) In submitting proposals for new expenditure administrative difficultiesand delays in sanctioning processes should always be borne in mind andnot more should be recommended for provision in the budget than islikely to be incurred during the course of the financial year.

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PART VII

DEVELOPMENT PROJECT PROCESSING

30. Development Projects.-

Development projects are those which are undertaken throughdevelopment budget and required to be prepared on the Form BDD-4.

31. Processing of development projects.-

The development projects shall be processed as follows-

(i) identification of development project;

(ii) preparation of project outline by concerned Office;

(iii) approval of development project outline by the Budget andDevelopment Committee;

(iv) preparation of detailed development project proposal;

(v) preparation of technical sanction for development projectsinvolving works;

(vi) approval by Budget and Development Committee;

(vii) issuance of Administrative Approval and Technical Sanction;

(viii) inclusion in Annual Development Programme;

(ix) approval by Council.

32. Responsibilities of the Nazim relating to Development Planning.-

Nazim shall-

(i) provide the vision and set the development priorities;

(ii) interact with the stakeholders to assess their needs;

(iii) encourage the CCBs to participate in the development activitiesand ensure that the CCB projects are given priority;

(iv) oversee the preparation of development project proposals;

(v) as Chairman of the Budget and Development Committee, ensurethat all development project proposals approved by the Budgetand Development Committee are feasible, sustainable and in linewith the priorities set by the Council; and

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(vi) Review progress of development projects and ensure timelycompletion of development projects.

33. Identification of Development projects.-

(1) The identification of development projects shall be through a bottom upplanning system.

(2)The detailed procedures relating to identification, approval andimplementation of CCBs projects are provided in Part III of Volume II ofthese Rules.

(3)The project proposals received during the year from variousstakeholders shall be scrutinized by the concerned Head of Offices.

(4)The Heads of offices shall submit the outline of new developmentproject proposals to the Budget and Development Committee through

the Planning Officer for approval and further processing. The newdevelopment projects shall be based on the detailed plans prepared bythe respective Head of Offices as specified in Rule 22.

34. Approval of Non-CCB development projects by the Budget andDevelopment Committee.-

(1) The Budget and Development Committee shall review the outline of thenew development project proposal received from the concerned officeand give approval for the preparation of detailed development projectproposals which have been cleared by the Budget and Development

Committee.

(2) The concerned office after receiving the approval by the Budget andDevelopment Committee shall initiate the process of preparing thedetailed development project proposal on Form BDD-4.

(3) The detailed development project proposal on completion by Head ofOffices shall be submitted to the Planning Officer.

(4) The Planning Officer shall frame a working paper on the basis of theinformation examining the financial, economic and environmental

viability of each development project.(5) The working paper along with a copy of the detailed proposal shall be

circulated among members of the Budget and Development Committee.

(6) The Budget and Development Committee (BDC) shall review thedevelopment project proposal and its decisions shall be recorded foreach development project proposal.

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(7) A copy of the development project proposal approved by the Budget andDevelopment Committee (BDC) shall be submitted to the Council forinformation.

35. Administrative Approval for development projects other than

CCBs .-

After the Budget and Development Committee has approved the developmentproject proposal, the District Coordination Officer (DCO) and TehsilMunicipal Officer (TMO) shall convey the Administrative Approval onbehalf of the respective Budget and Development Committee.

(2) Only the development projects approved by the Budget andDevelopment Committee shall be considered for inclusion in the AnnualDevelopment Programme.

36. Revision in Development project Proposals other than CCBs.-

(1) The upward revision of cost, or a major change inthe objective or scope of a development project shall require theapproval of the Council.

(2) The revision within the cost approved by theCouncil shall be approved by the Budget and Development Committee.The Budget and Development Committee shall ensure that theobjectives and scope are not altered.

37. Completion of on-going Development project other than CCBs.-

An on-going development project approved by the Council shall befunded and completed as approved.

38. Development projects involving works other than CCBs.-

(1) The development project proposal relating to works submitted to theBudget and Development Committee for Administrative Approval shallbe accompanied by a preliminary report, a rough cost estimate,preliminary plans, information to the site and other details as may benecessary to fully elucidate the proposals. The estimates and

preliminary plans should be obtained from the concerned office dealingwith works.

(2) For every work proposed to be carried out, except petty works andrepairs a properly detailed estimate must be prepared for the sanctionof the competent authority. This sanction is known as the "TechnicalSanction" to the estimate. Such sanction shall only be accorded by theofficials in accordance with the powers delegated to them.

(3) In cases in which it becomes apparent during the execution of the workthe amount administratively approved or the amount of technical

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sanction shall be exceeded, the approval and approval of the Councilshall be obtained.

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PART VIII

DEVELOPMENT BUDGET AND ANNUAL DEVELOPMENT PROGRAMME

39. Annual Development Programme.-

(1) The Annual Development Programme shall be a compilation of thedevelopment projects including CCB projects, approved by the Councilas part of the budget.

(2) The Annual Development Programme shall be submitted as part of thebudget documents.

40. Classification of Annual Development Programme.-

(1) The Annual Development Programme shall classify projects bysector, function and geographic location.

(2) The Annual Development Programme shall indicate newdevelopment projects and ongoing development projectsseparately. Development projects on which no expenditure hasbeen incurred previously shall be termed New developmentprojects. Development projects on which expenditure has beenincurred in previous years shall be termed On-going.

41. Source of funding for Annual Development Programme.-

(1) Main sources of funding the new development projects shall be-

(i) total receipts of the local government less current expenditure,on-going expenditure of development projects and other liabilities;and

(ii) financial assistance received by way of developmentgrants from the Government.

(2) Twenty five percent of the development budget shall be earmarked forexecution through Citizen Community Boards (CCBs). The CitizenCommunity Board (CCB) projects shall be processed, included in the

development budget and approved by the Council in accordance withVolume I and II of the Rules.

42. Phasing of Annual Development Programme.-

(1) As far as possible development projects shall be completed within thefinancial year.

(2) In exceptional circumstances a project may be phased over two financialyears in accordance with the Rules given in Part XVII.

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(3) Multi-year planning shall reflect and cater for the operation andmaintenance costs of completed development projects and shall ensurethat such costs are considered by the Budget and DevelopmentCommittee when approving development projects.

43. Prioritizing Development Projects for Inclusion in the AnnualDevelopment Programme.-

(1) For the Non-CCB (local government initiated) development projects eachHead of Offices shall select development projects for inclusion in theAnnual Development Programme from the development projectsprocessed by the Budget and Development Committee pertaining to hisoffices and forward their details to the Planning Officer in Forms BDD-1to 3. The development projects recommended by the Head of Officesshall be in line with the budget guidelines included in the Call letter andthe detailed operational plans of the respective Offices under the

administrative control of the Head of Offices.(2) The procedure for ranking of the CCB projects is explained in Part III of

Volume II of the Rules.

44. Approval of Annual Development Programme by Budget andDevelopment Committee.-

(1) The Planning Officer shall frame a working paper on the basis of theinformation provided by each Head of offices.

(2) The working paper shall then be circulated among members of the

Budget and Development Committee.

(3) The Budget and Development Committee shall approve thedevelopment projects to be included in the Annual DevelopmentProgramme while remaining within the fiscal space available andkeeping in view the detailed plans submitted by the Head of Offices.

(4) The Budget and Development Committee shall give priority to CCBprojects over Non-CCB development projects.

(5) The decisions of the Budget and Development Committee shall be

recorded for each development project proposal.

(6) After approval by the Budget and Development Committee, the AnnualDevelopment Programme shall be incorporated into the budgetdocuments by the Finance and Budget Officer. The draft shall alsoinclude the Citizen Community Board projects.

(7) After approval of the budget by the Council, the approved AnnualDevelopment Programme shall be circulated to the concerned Offices bythe Development and Planning Officer. The Council shall approve eachdevelopment project separately.

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45. Monitoring Progress of Development project Execution.-

(1) Expenditure can be incurred only on development projects for whichAdministrative Approval and Technical sanction (for works) has been accordedand the development project has been included in the budget and has been

approved by the Council.

(2) For development projects under execution, the executing agency shallsend monthly progress reports in the prescribed Form BM-5 and BM-7 to thePlanning Officer and Finance and Budget Officer, and the MonitoringCommittee in the first week following each month.

(3) Complaints and suggestions of the public, Monitoring Committee andofficials regarding development projects shall be submitted through thePlanning Officer to the Budget and Development Committee for necessaryaction.

46. Development project Completion.-

On development project completion, a project handing over report shallbe submitted by the concerned Head of Offices to the Planning Officerand a copy provided to the Budget and Development Committee,Finance and Budget Officer and a copy shall be provided to the Council.

47. Post Completion.-

Post completion evaluation of each development projects shall beundertaken jointly by the Planning Officer in collaboration with

concerned Head of Offices and a report submitted to the Council.

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PART IX

INTEGRATION OF DEVELOPMENT AND CURRENT BUDGET

48. Budget and Development Committee (BDC).-

The Budget and Development Committee shall be responsible for thepreparation and consolidation of the both the Current and DevelopmentBudget of the local government.

The functions of the Budget and Development Committee in relation to theDevelopment Budget shall be as follows-

(i) approval of all development projects submitted to them by thePlanning Officer;

(ii) approval of development projects for inclusion in the AnnualDevelopment Programme;

(iii) monitoring progress of development projects;

(iv) ensure the transfer of development projects on completion fromthe Development to Current budget;

(v) review post completion evaluation reports; and

(vi) issue directives wherever needed for removal of hurdles in theexecution of development projects.

(1) The functions of the Budget and Development Committee inrelation to the Current Budget shall be-

(i) review and approval of the Current expenditure;

(ii) review and approval of the Statement of New Expenditure(SNE) for the inclusion in the Current budget;

(iii) monitoring the Current Budget during the financial year;

(iv) issue directives for removal of hurdles in the execution of

the Current budget;

(v)ensure that the recurring cost of completed developmentprojects are included in the Current budget; and

(vi) ensure that funds are available for recurring costs oncompletion of development projects.

(4) The Finance and Budget Office shall serve as the Secretariat of theBudget and Development Committee.

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(5) The composition of the District Budget and Development Committeeshall be as follows-

Zila Nazim Chairman

District Coordination Officer Member

Executive District Officers Members

Executive District Officer (F&P) Member /Secretary

(6) The composition of the Tehsil Budget and Development Committee shallbe as follows-

Tehsil Nazim Chairman

Tehsil Municipal Officer Member

Tehsil Officers Members

Tehsil Officer (Finance) Member/Secretary

(7) The District Coordination Officer (DCO) and Tehsil Municipal Officer(TMO) shall act as the Chairman of the respective Budget andDevelopment Committee in the absence of the Chairman. The decisionsin such cases shall require the approval of the Nazim.

49. Meetings of the Budget and Development Committee.-

(1) The Budget and Development Committee shall hold monthly meetingsfor reviewing and monitoring the budget of the current financial year.

(2) The Budget and Development Committee shall hold such meetings asmay be required for the finalization of the budget for the next financialyear.

50. Transfer of Recurring Liabilities of Development Projects toCurrent Budget.-

The Heads of Offices, Development and Planning Officer and Budget andDevelopment Committee shall ensure that-

(i) details of the recurring expenditure of each development projectexpected to be completed in the next financial year iscommunicated to the Finance and Budget Officer; and

(ii) the recurring liability is included in the current budget andStatement of New Expenditure for the next financial year.

51. Directions Concerning Fiscal Space.-

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(1) Fiscal Space for a financial year refers to the resources available duringa financial year to a local government for implementation of its newdevelopment projects after having deducted all liabilities.

(2) In order to increase the fiscal space the local government shall-

(i) identify new sources of revenue;

(ii) detect and stop leakages of revenues from sources under theiradministrative control or supervision;

(iii) review and, if required, adjust user charges, fee and rates etc;

(iv) review establishment costs;

(v) restructure activities to maximize efficiency and effectiveness;

(vi) procure timely information from the Government regarding theexpected amount of local government share so that expendituremay be adjusted accordingly; and

(vii) encourage local contributions in development efforts by effectiveutilization of funds through the Citizen Community Boards.

(3) The development program shall be formulated within the fiscal space.

(4) All estimates of the receipts as well as expenditure shall be rounded tothe nearest hundred i.e. figures below 50 shall be disregarded and allfigures of 50 or above shall be entered as hundred.

(5) Unspent balance from the 25% funds reserved in the current budget forCitizen Community Boards (CCBs) shall be added to the fresh allocationfor Citizen Community Boards (CCBs) in the next year.

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PART X

BUDGET PRESENTATION TO THE COUNCIL

52. Budget Documents.-

(1) The Finance and Budget Officer shall for the Council prepare the budgetdocuments specified below-

(i) Budget speech of the Nazim;

(ii) Annual Budget Statement;

(iii) Budget Salient Features;

(iv) Estimates of Receipts;

(v) Demands for Grants (Current expenditure);

(vi) Demands for Grants (Development expenditure);

(vii) Statement of New Expenditure;

(viii) Annual Development Programme; and

(ix) Supplementary Budget for current year if required.

(2) The formats of the budget documents are provided in the First Schedule,while a brief description follows.

53. Budget Speech.-

The Budget Speech of the Nazim shall include the main features of thebudget.

54. Annual Budget Statement.-

(1) The Annual Budget Statement shall include details of receipts andexpenditure. The following shall be included in the Annual BudgetStatement (ABS)-

(i) Financial Abstract;

(ii) Details of Receipts;

(iii) Details of expenditure;

(iv) Details of Current expenditure by detailed function and majorobjects;

(v) Details of Public Account Receipts and Disbursement; and

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(vi) Function wise Development expenditure.

(2) The Annual Budget Statement shall be submitted on Form ABS.

55. Budget Salient Features (BSF).-

(1) The Budget Salient Features shall provide a brief description of the main features of each office and also includeperformance targets, service delivery facilities, policies and plans of thevarious offices.

(2) The salient features of each office shall beprovided in Form BSF-1.

(3) The performance targets shall be provided inForm BSF2.

(4) The status of service delivery facilities shall beprovided in Form BSF-3.

56. Estimates of Receipts.-

(1) The estimates of receipts shall be prepared and consolidated pursuantto Part IV.

(2) The estimates of receipts and other details shall be provided on FormsBDR 1 to 5.

57. Demands for Grants (Current expenditure).-

(1)The demand for grants for current expenditure shall includeestimates of total current expenditure and shall be prepared pursuant toPart V of Volume I.

(2)The Demand for Grants (Current expenditure) and other detailsshall be provided in Forms BDC 1 to 8.

(3)Other forms may be developed by a local government forproviding additional budgetary information.

58. Demands for Grants (Development expenditure).-

(1)The demand for grants and appropriation for development shallinclude the estimate of ongoing and new development projects includingCitizen Community Board (CCB) projects. It shall be prepared pursuantto Part VII, VIII and IX of Volume I.

(2)The Demand for Grants (Development expenditure) and otherdetails shall be provided in Forms BDD 1 to 3.

59. Statement of New Expenditure.-

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(1) The estimates of new expenditure relating to current budget shall beprovided separately as well, and prepared pursuant to Part V and VI ofVolume I.

(2) The Schedules and explanatory notes relating to the Statement of New

Expenditure shall be provided in Forms BDC 1 to 8.

60. The Annual Development Programme.-

(1) The Annual Development Programme shall be formulated as prescribedin Part VII, VIII and IX of Volume I and include details of each developmentproject. It shall be an explanatory document to the Demand for Grants(Development).

(2) The Annual development Program shall be provided in Form BDD-3.

61. Supplementary Budget.-

(1)A Supplementary Budget based on the Statement of Excess andSurrenders and Revised Estimates shall also be submitted along with theother budget documents if required.

(2)The supplementary budget shall be presented in the same form andmanner as that of the annual budget.

62. Draft and Final Budget.-

(1) The Finance and Budget Officer after consolidating the budget estimates

shall prepare a Draft Budget based on the preliminary estimatesprovided by the Government.

(2) The Draft Budget shall be discussed and finalized by the Budget andDevelopment Committee.

(3) The budget based on the preliminary estimates as approved by theNazim shall be presented to the Council for discussion as a Draft Budget.

(4) The recommendations of the Council on the Draft Budget shall beincorporated when the budget is being prepared and finalized on thebasis of the final estimates provided by the Government.

(5) The budget based on the final estimates provided by the Governmentshall be presented by the Nazim to the Council for approval.

63. Presentation to the Council.-

(1) The budget documents shall be laid before the Council for approval.

(2) The Council may refer the budget documents to the Budget Committeeconstituted by the Council. The Committee shall perform the followingfunctions-

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(i) scrutiny of receipts;

(ii) scrutiny of expenditure;

(iii) examination of new proposals for taxation; and

(iv) make recommendations to the council.

(3)No Demand for Grant shall be made to the Council except on therecommendation of the Nazim.

(4)The closing balance of the local government shall not be allowed tofall below 5% of the total receipts (excluding those of the publicaccount) anticipated for the year. For the purpose of this Rule theinvestments if any made out of the local government fund shall bedeemed to be a part of the closing balance.

(5)No lumpsum provisions shall be made in the budget the details ofwhich cannot be explained.

(6)A budget shall not be approved by the Council if the receipts do notmatch the proposed expenditure.

64. Schedule of Authorized Expenditure and Authentication byNazim.-

Following approval by the Council of the Annual Budget Statement inrespect of the next financial year, the Finance and Budget Officer shall-

(i) prepare a Schedule of Authorized Expenditure;

(ii) procure the authentication of the Nazim for the Schedulementioned in Sub-Rule (i) above;

(iii) Schedule of Authorized Expenditure shall be prepared in the sameform as the Annual Budget Statement;

(iv) the Schedule authenticated by the Nazim shall be laid before theCouncil, but shall not be open to discussion or vote thereon; and

(v) The Schedule of Authorized Expenditure shall lapse at the end ofthe financial year.

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PART XI

COMMUNICATION AND DISTRIBUTION OF GRANTS

65. Communication of Schedule of Authorized Expenditure.-

(1) A copy of the authenticated Schedule of AuthorizedExpenditure shall be forwarded to the Accounts Officer by the Financeand Budget Officer.

(2) The Finance and Budget Officer shall intimate to eachHead of Offices the details of the sums authorized in the Schedule ofAuthorized Expenditure for that financial year.

66. Communication of Grants to Drawing and Disbursing Officers(DDOs).-

On receipt of information from the Finance and Budget Officer regardingthe Grants, placed at their disposal, the Heads of Offices shall furtherdistribute the Grants to the Drawing and Disbursing Officers subordinateto him. The communication shall be completed by the 2nd week of July.

67. Communication of Receipt targets to Collecting Officers.-

(1) The targets for receipts approved by the Council shall be forwarded bythe Finance and Budget Officer to the Head of Offices.

(2) The Head of Offices shall forward the receipt targets to the Collecting

Officers subordinate to him.

68. Communication to Government and other local governments inthe District.-

A copy of the budget documents shall be supplied to the Government,Provincial Finance Commission and Local Government Commission. Acopy shall be provided to other local governments in the District ifrequested by them.

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PART XII

EXPENDITURE MANAGEMENT

69. Expenditure Management.-

(1) Each local government shall-

(i) ensure that it develops effective means to implement the budgetas passed by the council;

(ii) ensure that authorized budget allocations are expended inconformity with the Schedule of Authorized Expenditure;

(iii) if necessary, modify the budget to a changing environment, inaccordance with the provisions of these Rules; and

(iv) efficiently and effectively manage the resources made available tothe local government.

(2) Two elements are necessary before public money can be spent-

(i) there must be an appropriation of funds for the purpose; and

(ii) there must be sanction of an authority competent to sanctionexpenditure.

(3) Delay in payment of money indisputably due by a

local government shall be avoided. The payment of all actual obligationsshall be ascertained, provided for in the budget estimates, liquidatedand recorded at the earliest possible date.

(4) No contracts may be entered into by any authority,which has not been empowered to do so by the local government.

70. Responsibility of relevant local government Functionaries.-

(1) The Heads of Offices shall be responsible for controlling and managingexpenditure from the Grants placed at their disposal.

(2) Each Drawing and Disbursing Officer (DDO) shall be responsible for theexpenditure actually incurred against the funds allotted to him. Theexpenditure shall be sanctioned in accordance with the delegation ofFinancial Power Rules.

(3) In case of any reduction in budget necessitated by lower than expectedreceipts the Nazim shall convene a meeting of the Budget andDevelopment Committee and decide the requisite reduction in respectof any one or more heads of expenditure, keeping in view the prioritiesset by the Council. Such revisions shall require approval of the Council.

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In case receipts exceed the estimations or additional grants or funding isreceived then a supplementary budget shall be presented to the Councilprior to utilization of the additional funds.

(4) In order to keep total expenditure within the Grant, every Head of

Offices shall be informed monthly by each Drawing and DisbursingOfficer of-

(i) actual spending from the Grant or Grants placed at the disposal ofany such subordinate Drawing and Disbursing Officer;

(ii) the extent of commitments that have been made but not paid foragainst such Grant or Grants; and

(iii) the extent of expenditure that is likely to be incurred during theremaining period of the financial year.

(5) Each Head of Offices shall review the expenditure position and take suchmeasures as may be required to check the trend of any excessiveexpenditure.

71. Recording of disbursements by Drawing and Disbursing Officers(DDOs).-

(1) Every Drawing and Disbursing Officer (DDO) shall maintain anappropriation register which shall include the commitments against theappropriations and a register of actual disbursements. The DDO shallalso monitor the appropriations relating to establishment.

(2) When a bill is prepared for payment, the Drawing and Disbursing Officer(DDO) shall indicate complete accounts classification in respect of theproposed expenditure and the balance available in the detailed objecthead.

(3) The Drawing and Disbursing Officer (DDO) may maintain other registersas may be required to manage, control and monitor the budget.

(4) In the event that a Drawing and Disbursing Officer (DDO) receivesconfirmation from Head of Offices or any other source that a particular

item of expenditure has been incorrectly classified, he shall immediatelycorrect the accounts and send the same information to the AccountsOfficer.

(5) A Drawing and Disbursing Officer shall not on his own authorityauthorize any payment in excess of the funds placed at his disposal.

72. Reconciliation of expenditure - District Government and TehsilMunicipal Administration.-

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(1) During the first week of each month, the respectiveAccounts Officer shall provide for the previous month, a scheduleshowing the numbers, dates and amounts of vouchers paid during thatmonth, and supply copy of each such schedule to the concernedDrawing and Disbursing Officer (DDO).

(2) Upon receipt of the schedule from the AccountsOfficer, the Drawing and Disbursing Officer (DDO) shall-

(i) compare such schedule with the statement prepared by him; and

(ii) reconcile expenditure with Accounts Officer by 10th of the monthfor the previous month.

(3) The respective Head of Offices, Drawing and Disbursing Officer (DDO)and the Accounts Officer shall be jointly responsible for reconciling anydifferences and for correcting misclassifications or any other errors.

(4) In case the reconciled statement is not provided by the Head of Officesby the 20th of the month to the Finance and Budget Officer, following themonth to which the Accounts relate, no bills may be passed by theAccounts Officer for the defaulting DDOs.

73. Monthly expenditure Statement.-

(1) The Drawing and Disbursing Officer (DDO) shall provide a reconciledstatement of expenditure not later than the 13th day of the monthfollowing the month to which the accounts relate, to the relevant Head

of Offices in Form BM-1.

(2) If any Head of Offices has one or more subordinate Drawing andDisbursing Officers (DDOs), such Head of Offices shall consolidate thestatements he receives from any such Drawing and Disbursing Officers(DDOs).

The Head of Offices shall forward the consolidated statement ofexpenditure to the Finance and Budget Officer, so as to reach him by the16th day of the month following that to which the accounts relate.

74. Monthly Reports of expenditure.-(1)Each local government shall submit a monthly report to the

respective Council relating to the expenditure incurred during themonth by the local government.

(2) The monthly financial reports shall include the following BM Forms-

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BM-1 - Monthly Statement of Current expenditure;

BM-2 - Monthly Reconciliation of Current expenditure;

(iii) BM-3 - Monthly Statement of Receipts;

(iv) BM-4 - Monthly Reconciliation of Receipts;

BM-5 - Monthly Progress Report Development Programme - governmentProjects & Citizen Community Boards (CCBs);

BM-6 - Monthly Reconciliation of Development expenditure;

(vii) BM-7 - Monthly Report- Operationalization of Projects;

(viii) BM-8 - Service Delivery Targets;

(ix) BM-9 - Service Delivery Facilities Status;

(x) BM-10 - Establishment Status by Designation;

(xi) BM-11 - Monthly Statement of Re-appropriations of Funds;

(xii) BM-12 - Statement of Supplementary Grants; and

(xiii) BM-13 - Statement of Excesses and Surrenders.

75. Steps Required in Case of likelihood of Excess expenditure.-

(1) In the event that a Grant is likely to be exceeded, the Head of Officesshall take immediate steps to prevent the excess expenditure by-

(i) ensuring strict control over the affected Grant; or

(ii) transferring funds under his powers of Re-appropriation; and

(iii) submitting as soon as the necessity becomes definite, anapplication for Supplementary Grant.

(2) If funds cannot be provided through re-appropriations then aSupplementary Grant shall be need to be prepared and got approvedfrom the Council before the additional expenditure is incurred. Theprocedure for re-appropriations and Supplementary Grants are providedin Part XIV of Volume I.

76. Statement of Excesses and Surrenders.-

(1) The Statement of Excesses and Surrenders shall be prepared in FormBM-13 by the Head of Offices after 8 months of the financial year.

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(2) For purposes of completing Form BM-13, the Heads of Offices shallobtain the required information from the concerned Drawing and DisbursingOfficers (DDOs).

(3) Annually, one Statement of Excesses and Surrenders shall be prepared

and submitted by the Heads of Offices to the Finance and Budget Officer.

(4) The Statement of Excesses and Surrenders shall be completed on thebasis of actual expenditure incurred during the first eight months of thefinancial year and keeping in view the expected expenditure in the remainingfour months of the financial year.

(5) The Excesses and Surrenders shall form the basis for -

(i) preparing the revised estimates; and

(ii) formulating the demands for additional funds if required.

(6) The revised estimates shall also be used to form the basis of thefollowing year budget estimates and for determining the estimated closingbalance of the local government fund.

(7) The Heads of Offices shall submit together with the Statement ofExcesses and Surrenders a note explaining the reasons for the excesses andsurrenders.

(8) The Finance and Budget Officer shall consolidate the Statements ofExcesses and Surrenders for approval by the Budget and Development

Committee (BDC).

77. Revised Estimates and Supplementary Grant.-

(1)In addition to any revisions during the year every local governmentshall after 8 months of the financial year prepare revised estimatesbased on the Statement of Excesses and Surrenders to be finalized bythe Budget and Development Committee in March.

(2)If additional funds, which cannot be met through re-appropriation areidentified for the remaining four months a Supplementary Grant shall besubmitted to the Council for approval alongwith the Draft Budget for thenext financial year in April.

78. Distribution and Communication of Supplementary Grant.-

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(1) Subsequent to approval by the Council and intimation by the Financeand Budget Officer of the Supplementary Grant, the Heads of Officesconcerned shall distribute the Supplementary Grant and communicatethe break-up of the Grant to Drawing and Disbursing Officers and theAccounts Officer concerned.

(2) The Collecting Officer shall also be communicated therevised targets for receipt as approved by the Council.

79. Principal Accounting Officer (PAO).-

(1) The Principal Accounting Officer for local governments shall be-

(i) District Coordination Officer (DCO) for District/CityDistrict Government; and

(ii) Tehsil Municipal Officer (TMO) for Tehsil Municipal

Administration.

(2) The Principal Accounting Officer shall be responsible for resolving theAudit paras.

80. Accounts Committee of the Council.-

(1)The Accounts Committee of the Council shall monitor the budgetduring the financial year.

(2)The Accounts Committee shall review the monthly financial reports

including the accounts report submitted by the Accounts Officer.

(3)The Accounts Committee shall especially focus on the reconciliationof expenditure.

(4)The Head of Offices shall be responsible to the Accounts Committeeof the Council for issues relating to expenditure.

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PART XIII

RECEIPT MANAGEMENT

81. Receipt Management.-

(1) The primary obligation of the Collecting Officers shall be to ensure thatall revenue due is claimed, realized and credited immediately into thelocal government fund under the proper receipt head.

(2) The Head of the Offices shall supervise and take corrective measures inrespect of the activities of the Collecting Officers.

82. Monthly Statement of Receipts.-

(1) The Collecting Officers shall furnish monthly reconciled statements ofactual collections under the heads for which they are responsible to theHead of Offices in Forms BM-3 and BM-4 by 13th day of the monthfollowing the month to which the statement relates.

(2) The Head of Offices shall consolidate the figures received from differentCollecting Officers and shall forward the same to the Finance andBudget Officer by the 16th day of the month following the month towhich the statement relates.

83. Reconciliation of Receipts - District Government and TehsilMunicipal Administration.-

(1) The Collecting Officers shall reconcile his figures with the recordmaintained by the Accounts Officer by the 10th day of the monthfollowing the month to which the statement relate.

(2) In order to enable the Head of Offices concerned to verify whether theamounts shown as realized in the statements have actually beenrealized and credited to the proper head of account, the AccountsOfficer concerned shall provide the Head of Offices with statementsconfirming the actual amounts credited under the relevant receiptheads.

84. Prompt Deposit of Receipts.-

(1) The receipts for a month shall be the figures of the receipts creditedduring that particular month.

(2) In the event that any money is realized in one month but not crediteduntil the subsequent month except that relating to the last working dayof a calendar month, the facts and circumstances shall be clearly statedin the monthly report in which the receipts were realized.

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(3) The sanction of the competent authority is necessary for the remissionof, and abandonment of claims to revenue.

85. Rectification of Errors in recording of receipts.-

(1) In the event that any error in recording of receipts is discovered thereturn shall be corrected and an intimation shall immediately be sent tothe concerned Accounts Officer for rectification.

(2) In the event of any error detected in the office of the Accounts Officer,such office shall forward the details to the Collecting Officers.

86. Monthly Report of Receipts.-

(1)Each local government shall submit a monthly report to therespective Council relating to the receipts received during themonth.

(2) The monthly financial report relating to receipts shall include thefollowing Forms-

(i) BM-3 - Monthly Statement of Receipts; and

(ii) BM-4 - Monthly Reconciliation of Receipts.

87. Accounts Committee to Monitor Receipts.-

(1) The Principal Accounting Officer (PAO) shall be responsible for resolvingAudit paras relating to receipts.

(2) The Accounts Committee of the Council shall monitor the receipts duringthe financial year.

(3) The Accounts Committee shall especially focus on the reconciliation ofreceipts and realization of monthly targets.

(4) The Head of Offices shall be responsible to the Accounts Committee ofthe Council for issues relating to receipts.

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PART XIV

RE-APPROPRIATIONS AND SUPPLEMENTARY GRANTS

88. Expenditure not provided for in the Schedule of Authorized

Expenditure.-

In the event that unavoidable and unforeseen circumstances ariseduring the course of any particular financial year that requires incurringexcess expenditure or expenditure not contemplated in the Schedule ofAuthorized Expenditure, such expenditure shall be made availablethrough, re-appropriation or supplementary grants or both.

89. Re-appropriations.-

(1) Re-appropriation means the transfer of savings in a unit of appropriation

to meet excess expenditure anticipated under another unit ofappropriation.

(2) The officials shall re-appropriate in accordance with the re-appropriationpowers delegated by the respective Council to them.

90. Procedure for Re-appropriation.-

(1) If any officer is competent to sanction a re-appropriation, such officermay do so pursuant to the powers delegated to him by the Council. Acopy of the order sanctioning any re-appropriation shall becommunicated to the Head of Offices, Finance and Budget Officer and

the Accounts Officer.

(2) A request for re-appropriation shall be prepared by the concernedDrawing and Disbursing Officer. If it involves different Drawing andDisbursing Officers then the Head of offices shall process the re-appropriation.

(3) If the re-appropriation involves two different grants then the Financeand Budget Officer shall be responsible for processing the re-appropriation.

(4) In the event that the re-appropriation is beyond the limit set by theCouncil, it shall require the approval of the Council. In such cases therequest for re-appropriation of funds shall be prepared by the Head ofOffices and forwarded to the following officers in succession-

(i) The Finance and Budget Officer;

(ii) Budget and Development Committee; and

(iii) Council for approval.

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91. Supplementary Grants.-

(1) In case that a Head of Offices considers that the need for additionalfunds has arisen for which no re-appropriation is available. He shallsubmit a proposal for Supplementary Grant to the Budget andDevelopment Committee (BDC) through the Finance and Budget Officer(FBO).

(2) The proposal shall be accompanied by an explanatory note justifying theSupplementary Grant.

92. The Supplementary Budget Statement.-

(1) Requests for Supplementary Grant during the financial year shall beconsolidated by the Finance and Budget Officer (FBO) in the form of aSupplementary Budget Statement. The same details as in the annualbudget shall be provided to the Council.

(2) The form and manner in which the Supplementary Budget Statement ispresented to the Council shall be the same as that of the Annual BudgetStatement.

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PART XV

LINKAGE WITH THE GOVERNMENT AND FISCAL TRANSFERS

93. Local government Fund.-

The resources made available to the local government through fiscaltransfers from the Provincial Government shall comprise share ofreceipts of the concerned local government and shall constitute a part ofthe local government Fund.

94. Distribution of Funds to local government by Government.-

The share of each local government shall be in accordance with theAward notified by the Governor.

95. Communication of Preliminary Figures of local governmentshare.-

The Finance Department shall communicate the preliminary estimatesof the respective local government share by the first week of Marcheach year.

96. Communication of Final Figures of local government share.-

The Provincial Finance Department shall communicate the finalestimates of local government share in June each year.

97. Monthly transfer of local government share.-

The Finance Department shall disburse the local government sharedirectly to the local government on monthly basis.

98. Submission of Reports.-

(1) The District Accounts Officer (DAO) shall send monthly accounts to theGovernment of all the local governments in the district. The AccountsOfficer of Tehsil Municipal Administration shall submit reconciledaccounts to the District Accounts Officer well in time to meet the above

deadline.(2) The local governments shall provide regular and special reports on any

aspect of the local government finances, as and when such reports maybe required by the Government.

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PART XVI

PERFORMANCE TARGETS

99. Performance Targets.-

(1) In order to improve efficiency and effectiveness of service delivery, thelocal government shall provide performance targets along with thefinancial figures in the budget. The performance targets may beprovided for inputs, outputs or outcome.

(2) Performance targets shall be-

(i) clear, precise and unambiguous;

(ii) relevant; and

(iii) verifiable.

(3) The Budget and Development Committee (BDC) shall finalize with eachHead of Offices their intended performance targets for the next financialyear. Such mutually agreed performance targets shall be prepared onForms BSF-2 and BSF-3.

(4) The status of Performance Targets achieved shall be provided regularlyduring the year through Forms BM-8 and BM-9.

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PART XVII

MULTI-YEAR PLANNING

100. Multi-year Planning.-

(1) Where the implementation period of a development projectexceeds one financial year multi-year planning shall be necessary.

(2) The multi-year planning shall take also into consideration the CitizenCommunity Board (CCB) projects.

(3) To determine the fiscal space in a multi-year environment requiresanalyzing-

(i) future revenue prospects; and

(ii) future expenditure.

101. Projection of Estimates of Receipts.-

(1) The revenue projections for the next three financial years shall becomputed by analyzing the growth trend of the revenue items duringprevious financial years.

(2) The projections for revenues for future years may be further adjusted.Such adjustment may be effected by taking into account the change inlocal economic conditions and likely policy initiatives.

(3) The multi-year projection for receipts shall be prepared on Form BMP-2.

102. Projection of Estimates of expenditure.-

(1) The Estimates of expenditure shall be projected for the future years bytaking into account the following factors-

(i) effect of inflation;

(ii) annual increase in the pay of the establishment;

(iii) expansion programs of the current services;

(iv) impact of currently undertaken development projects uponrecurrent expenditure;

(v) anticipated savings on account of improved efficiency; and

(vi) relevant policy decisions.

(2) The multi-year projection for expenditure shall be provided in Form BMP-3 and BMP-4.

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103. Presentation of Multi-Year Projections.-

Fiscal space based on the multi-year projections for the period coveredby the Annual Development Programme shall be presented in FormBMP-1.

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PART XVIII

MISCELLANEOUS

104. Interpretation of Rules.-

In case of any ambiguity or inconsistency arising in the interpretation orconstruction of the provisions of these Rules, the Government shall resolvesuch ambiguity or inconsistency.

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VOLUME II

CITIZEN COMMUNITY BOARDS (CCBs)

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PART I

REGISTRATION OF CITIZEN COMMUNITY BOARDS

105. Application for availability of name for a CCB.-

(1)Persons desirous of being registered as a CCB under these Rules shallmake an application on a plain paper duly signed by atleast two foundermembers alongwith photocopy of their National Identity Cards to theconcerned Registration Authority requesting information as to whetherthe proposed name is available for registration.

(2)Each CCB registered under these Rules shall include the name of theUnion at the end, within whose territorial jurisdiction its office issituated. The name of a CCB shall be on the following format-

[Name ] (CCB) [Name of the Union Council in which the office is to beregistered].

(3)A CCB shall not be registered by a name identical to or so nearlyresembling that of a registered CCB or other entity that it may deceive aman of ordinary prudence.

(4)A confirmation of availability of name by the Registration Authorityshall be provided on CCB Form 1.

(5)If for any reason the Registration Authority does not respond withinfifteen days of the receipt of application, approval to use the name

proposed by such CCB shall be deemed to have been given.

(6)The name of the proposed CCB shall be reserved for a period of onemonth by the Registration Authority after which the CCB shall have toapply again for ensuring the availability of the name.

106. Change of Name of a registered CCB.-

(1)A registered CCB intending to change its name, shall follow the sameprocedure as that for a new CCB as provided in Rule 105.

(2)Notwithstanding anything to the contrary, if the RegistrationAuthority is of the opinion that the name, of a registered CCB isdeceptive, inappropriate or may exploit or offend religioussusceptibilities of the people, the Registration Authority shall requiresuch CCB to change its name.

107. Application for Registration as CCB.-

(1)A group of persons not less than twenty five (25) non-elected personsmay, by subscribing to the Charter register themselves as a CCB.

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(2)CCB shall be registered at the office stated in the Charter of the CCB.Such office shall be within the limits of the District.

(3)There shall be no limit on the number of CCBs, which can beregistered in a local area.

(4)A request for registration as a CCB shall be accompanied by-

(i) an application on a plain paper duly signed by its Chairmanand Secretary;

(ii) three (3) copies of the Charter which shall be dulysubscribed and witnessed;

(iii) a copy of the confirmation received from the RegistrationAuthority that the proposed name for the CCB is available orevidence that a copy of the application was deposited at least

fifteen days prior to the date of application for registration; and

(iv) a list of atleast twenty five founder members in the formhereto annexed as CCB Form 2.

(5)The Registration Authority on being satisfied, after such enquiry andafter obtaining such further information, as it may consider necessary,shall issue a certificate of registration within fifteen days in the CCBForm 3.

(6)If the Registration Authority does not object to the registration as a

CCB within thirty days of the date on which the application forregistration is made the registration shall be issued to the CCB.

(7)The registration shall be valid within the District under the jurisdictionof the Registration Authority and shall not require renewal.

(8)The Registration Authority by an order recording reasons may refuseregistration if it is satisfied that the objectives, functions or activitiesproposed to be carried out are opposed to public policy or contrary tothe law or the Rules.

(9)Before making an order under sub-rule (8) above, the RegistrationAuthority shall give notice within 15 days to the chairman and orsecretary of the proposed CCB to show cause, on or before a datespecified therein but not less than fifteen days, as to why the applicationfor registration shall not be rejected.

(10) Any person aggrieved by an order of the Registration Authorityunder sub-rule (9) above, may appeal in writing to the concerned ZilaNazim within thirty (30) days of the date of such order. The Zila Nazimshall communicate his decision in writing to the CCB within fifteen days.

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(11) Any person after the rejection of the appeal by the Zila Nazim oron not receiving a reply within thirty days from the Zila Nazim asprovided in sub-Rule (10) may appeal to the concerned Zila Councilwithin thirty (30) days of the date of such rejection by the Zila Nazim orwithin thirty days of the expiry of the fifteen days period. Such appeal

shall be taken up by the Zila Council in the next meeting.

108. Documents to be filed with the Registration Authority.-

(1) Once in every year, on or before the 31st of August, each CCB shall filewith the Registration Authority, the following documents-

(i) List of its members with National Identity Card numbers;

(ii) particulars of its Chairman, members of the Executive Committee,and the Secretary;

(iii) copies of the audited annual accounts of the previous year.However, these shall be submitted by 31st December following theclose of the financial year in June; and

(iv) list of development projects undertaken.

(2) If, and when, deemed appropriate, the Registration Authority mayrequest copies of such documents as it may require.

109. Mode of Submission of Documents.-

(1) Every application, form or document submitted by a CCB shall, inaddition to complying with any other requirement of the Ordinance orthese Rules, be-

(i) signed and certified by a responsible person of the CCB;

(ii) accompanied by documents referred to in the application;

(iii) accompanied by one spare copy, duly signed, dated and verified;and

(iv) accompanied by the original receipt of the treasury or bank or

post office as evidence of payment of the prescribed fee whereapplicable.

(2) Any application, document, statement, return, or report shall bedelivered, either in person or through an agent, against receipt, to suchaddressee or sent to such addressee by registered post.

(3)Any person may inspect the record of a CCB available with theRegistration Authority or with any other office of the local governmentupon a written request indicating the reason for inspection.

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110. Changes in Charter.-

(1)A CCB desirous of changing its Charter may do so provided, that ithas by written notice intimated the changes to the RegistrationAuthority.

(2)Such change in the Charter shall become effective upon confirmationby the Registration Authority in writing.

(3)In case the Registration Authority does not confirm the changeswithin thirty days of the date on which such intimation was received bythe Registration Authority, such change shall be deemed effective to theextent that it does not contravene the provisions of the Ordinance orthese Rules, upon conclusion of such period.

111. Payment of Fees.-

(1) There shall be paid in respect of the matters mentioned in the SecondSchedule, the fees therein specified, by the Registration Authority concerned.

(2) The Registration Authority concerned may amend the Second Schedulewith the approval of the Zila Council.

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PART II

DISSOLUTION OF CCB

112. Dissolution of the CCB.-

(1) A CCB may be dissolved or deregistered by the Registration Authorityafter approval of the Zila Council if-

(i) in the opinion of the Registration Authority based on the reportof the inquiry official, the CCB is unable to carry out its functionsin accordance with the Ordinance or Rules framed thereunder; or

(ii) a CCB, by a resolution passed by not less than seventy five (75)per cent of its members, resolves to be dissolved or deregistered.

(2) The CCB official through the Zila Nazim put up the case of dissolution tothe Council.

(3) The Zila Council shall allow dissolution after examination of the Charter,accounts including liabilities and other documents of the CCB.

(4) An application for dissolution submitted by a CCB to the RegistrationAuthority under sub-Rule (1)(ii) shall be deemed to have been accepted by theconcerned Zila Council after a period of 60 days unless reasons for the delayare intimated to the CCB in writing by the Registration Authority.

(5) Upon dissolution the Registration Authority shall appoint an

administrator to deal with the matters relating to the dissolution of a CCB. Theassets of the CCB however shall continue to be used for community welfare.

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PART III

DEVELOPMENT PROJECT PREPARATION, APPROVAL ANDIMPLEMENTATION

113. Development project Identification by CCBs.-

(1) The CCB project shall be identified within the overall policy guidelinesand framework of the local government concerned to which the CCBproject shall be submitted for funding.

(2) CCB funds are earmarked in the development budget at all levels oflocal governments and a CCB may submit project proposals to any levelof local government.

(3) A CCB shall identify Project Proposals in accordance with the

classification of Projects issued by the local government concerned andsubmit to the concerned CCB official in accordance with the time frameprovided in the Third schedule or as notified by

District Budget Rules

Documents

Transcript of District Budget Rules