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BALOCHISTAN LOCAL GOVERNMENT BALOCHISTAN LOCAL GOVERNMENT (FISCAL TRANSFER) RULES, 2004 [Gazette of Balochistan, Extraordinary, 5th November, 2004] No.52/2004(BLGB)/A.O.IV, dated 5-11-2004.---In exercise of the powers conferred by subsection (1) of section 191 read with item 20 of Part I of the Fifth Schedule of the Balochistan Local Government Ordinance, 2001 (XVIII of 2001), the Government of Balochistan is pleased to make the following rules:-- CHAPTER-I SHORT TITLE AND DEFINITIONS 1. Short title and commencement. (1) These rules may be called the Balochistan Local Government (Fiscal Transfer) Rules, 2004. (2) They shall come into force at once. 2. Definitions.-- (1) In these rules, unless there is anything repugnant in the subject or context the following expressions shall have the meaning, hereby respectively assigned to them:-- (i) annual report means a report submitted by the Provincial Finance Commission within the meanings of subsections (5) and (6) of section 120-E of the Ordinance; (ii) appropriation account of Local Government means a statement of expenditures with regard to the budgetary allocations and shall ensure that (a) the accounts properly present the accounting transactions in a most material aspect and (b) reasonable arrangements were in place for exercising pre-audit checks, while ensuring that payments have been made in observance of relevant rules and regulations, and that (c) the expenditures shown as incurred for the purpose of grants and appropriations, except where observed in Notes, have been booked to the relevant grants and appropriations; (iii) appropriation means an allocation of funds to an office of the Local Government on the basis of its Schedule of Authorised Expenditure; (iv) account means a repository of Local Government or Government funds in the State Bank of Pakistan or in a Bank approved by the Government, or a Government treasury; (v) accounts means a statement of receipt and expenditure on the accounts of a Local Government prepared and maintained in such form and in accordance with such methods and principles as the Auditor General of Pakistan, with the approval of the President, may have laid down; (vi) accounts statement includes annual appropriation account and finance account; (vii) annual finance account of Local Government means a statement of receipts and expenditures of a Local Government as a whole including transactions relating to Local Government fund and the public account; (viii) bank means the State Bank of Pakistan or any of its offices or branches and includes any branch of the National Bank of Pakistan acting as the agent of the State Bank of Pakistan in accordance with the provisions of the State Bank of Pakistan Act, 1956 (Act No.XXXIII of 1956) or a bank approved by the Government and includes a Government treasury where the cash business of the Local Government is not conducted by a bank; (ix) cash balance means the aggregate monies held by a Local Government in its account at a given point in time; (x) Council means the same as in the Ordinance but excludes Village Council and Neighbourhood Council; (xi) delay in transfer means as defined in these rules; (xii) discrepancy in transfer means as defined in these rules; (xiii) district accounts office means an office in a district under the Provincial Government or Accountant General Balochistan inter alia responsible for maintenance of accounts of the District or City District Government; (xiv) Government means Government of the Balochistan; (xv) Local Government accounts office means an office entrusted with the responsibility of maintenance of accounts of a Local Government and includes a District accounts office, a Tehsil accounts office and a Union accounts office; (xvi) Local Government expenditure means the amount expended by the designated functionaries of a Local Government in the manner prescribed in the financial rules and in accordance with the annual budget including supplementary budget approved by its council; (xvii) Local Government finance office includes offices responsible for regulating the finances of a Local Government and includes the offices of the Executive District Officer Finance & Planning, the Tehsil Officer Finance and office of the Union Accountant; (xviii) Local Government revenue-expenditure statement means a monthly statement of accounts separately showing the receipts and expenditures of Local Government classified in the prescribed manner; (xix) local own source revenue means revenues received by a Local Government from the proceeds of taxes or charges levied by a Local Government and other proceeds vested in it under the Local Government Ordinance; (xx) officer in-charge of a spending arrangement means an officer entrusted with the executive authority of implementing a project, programme, scheme or any other initiative financed out of the budget of the Government or Federal Government; (xxi) Ordinance means the Balochistan Local Government Ordinance 2001; (xxii) prescribed report means a report prescribed under these rules and shall only constitute such a report if produced in the form set for the purpose; (xxiii) prescribed means prescribed under these rules; (xxiv) Provincial Consolidated Fund means the same as provided in Article 118 of the Constitution of Pakistan, 1973; (xxv) reporting officer means an officer vested with the responsibility of submitting a report under these rules; (xxvi) Schedule means a Schedule attached to these rules; (xxvii) Secretary means Secretary of the Provincial Finance Commission and Secretary to Government of Balochistan, Finance Department; (xxviii) share of Local Government as calculated means the share of a Local Government calculated by the Finance Department at the commencement of a calendar month using the actual allocable amount based on actual Provincial receipts and in accordance with Provincial Finance Commission award for the time being in force; (xxix) share of Local Government as determined means the share of a Local Government determined by the Provincial Finance Commission in its award and it may be based on any estimated revenues for a year; (xxx) Tehsil accounts office means an office located in each Tehsil or Town Municipal Administration headed by a Tehsil or Town accounts officer responsible for the maintenance of accounts of the Tehsil or Town Municipal Administration; (xxxi) Tehsil accounts officer means an officer responsible for the maintenance of accounts of a Tehsil or Town Municipal Administration; (xxxii) transfer means funds transferred to the account of a Local Government from the account of the Government or another Local Government where they are not paid in lieu of a service or a goods provided by the recipient Local Government to the Government or the Local Government, as the case may be. (2) Words and expressions used but not defined in these rules shall have the same meaning as are respectively assigned to them in the Ordinance. CHAPTER-II SECRETARIAT AND INTERGOVERNMENTAL FISCAL DATABASE (Under section 120-B subsection 2) 3. Secretariat of the Provincial Financial Commission.---(1) The Finance Department shall set up a designated establishment of officers and staff, with adequate resources and equipment, which shall be called the Provincial Finance Commission Secretariat, hereinafter referred to as the Secretariat, for carrying out the purposes of Chapter XIII-A of the Ordinance and these Rules. (2) When required the Secretary may hire the services of experts to provide technical expertise to the work of the Provincial Finance Commission and they shall form part of the Secretariat for the duration of their assignment. (3) The number of posts for the Secretariat shall be determined by the Secretary, from time to time, with due regard to the nature and quantum of work. (4) The senior most executive officer in the Secretariat shall be responsible for implementation of any prescribed or entrusted functions and duties of the Secretariat. (5) The Secretariat shall function under the overall executive control of the Secretary. 4. Functions and duties of the Secretariat. The functions and duties, without prejudice to the generality of technical and secretariat support as may be required by the Provincial Finance Commission or as otherwise provided in these rules, of the Secretariat shall include-- (a) preparing technical briefs for Provincial Finance Commission meetings; (b) making available all prescribed documents to the Provincial Finance Commission for its meetings; (c) carrying out simulations, development of formula options and study the differential impact of various options on Local Government finance; (d) maintenance of intergovernmental database, in such forms and of such standards, as may be prescribed from time to time; (e) carrying out monitoring of receipt of funds by Local Government; (f) receipt of reports from Local Government as may be prescribed; (g) undertaking analysis of Local Government finance, or if so required, of provincial finances; (h) preparation and maintenance of relevant data relating to Local Government, as prescribed, or as may be required by the Provincial Finance Commission; (i) evaluation of impact of fiscal transfers on Local Governments and other relevant matters (section 120-G subsection 3); (j) commissioning of special research and studies relating to intergovernmental finance; (k) preparation of draft Annual Report; (l) publication of Annual Report after approval by the Provincial Finance Commission; (m) provision of periodic reports on Local Government finance to the Secretary. 5. Communication and access to information.---Nothing contained in these rules shall be deemed to impose any limits on the Secretariat to carry out timely communication of any matters relating to transfers to Local Government, Government agency or any person or in providing access to information to any citizen. 6. Budget.---(1) The annual budget of the Secretariat shall be prepared separately as part of the budget estimates of the Finance Department. (2) Special funds may be allocated for undertaking studies and analysis. 7. Intergovernmental fiscal database.---(1) Intergovernmental fiscal database shall be set up in the Secretariat, subject to the following, in such form as may be possible in view of available technological options and data that may be gathered. (2) The intergovernmental fiscal database shall comprise of and be maintained for data on revenues and expenditures of the local Governments under various heads, all kinds of transfers to Local Governments, data pertaining to specific issues peculiar to Provincial Finance Commission award for the time being in force, or any data, as otherwise required and listed in Part A of the Second Schedule. (3) All data shall be updated on a monthly basis provided that for certain categories a different periodicity may be observed with the permission of the Secretary. (4) Intergovernmental database may include, without prejudice to the provisions of sub-rule (2) hereinbefore, all elements as described in Part B of the Second Schedule and reports may be provided to the Provincial Finance Commission for analysis, review, deliberations on formula options or any other functions, duties and exercise of powers of the Provincial Finance Commission. (5) Data and reports from the intergovernmental fiscal database may be provided to any Local Government, Government agency, person or organization for any academic or other purpose upon request and payment of any fee that may be collected with the express permission of the Secretary. (6) Such fees as may be collected in accordance with the provisions of sub- rule last hereinbefore shall be shall be deposited in the Government Treasury or a special account authorized by the Secretary. CHAPTER - III THE METHOD OF TRANSFERS 8. Dissemination of formula.---(1) As soon as may be possible, upon notification of a Provincial Finance Commission formula under the provisions of Chapter XII-A of the Ordinance, the Secretariat shall make all suitable and necessary arrangements for dissemination of the formula to Government agencies and Local Governments in the Province. (2) Where grant systems are seeking to achieve specific objectives through Local Government action the Secretariat shall make special arrangements for dissemination and wider understanding of the conditionalities, provisions, incentives and sanctions attached to such transfers to which these apply. 9. Notification of Provincial Consolidated Fund and its distribution.---(1) The Secretariat shall notify the calculated size of the Provincial Consolidated Fund, Provincial Retained Amount and Provincial Allocable Amount in accordance with the Provincial Finance Commission formulae for the time being in force, based on the estimated revenues of the Province, in the month of March every year for the following fiscal year. (2) It shall notify the revised size of the Provincial Consolidated Fund, Provincial Retained Amount and Provincial Allocable Amount for an on going fiscal year as early as possible as such notification shall be based on the revised estimates. 10. Notification of shares of local government.---(1) Share of Local Government as determined shall be notified by the Secretariat upon determination in light of the formula set by or applicable under the decision of the Provincial Finance Commission. (2) Notifications of the shares for the period of the formula shall be made in accordance with the projected revenues of the Province at the beginning of each time period of a formula. (3) Notification of the shares for a fiscal year shall be made in accordance with the projected revenues of the Province for the fiscal year in the month of March before that fiscal year. (4) Notifications of the shares shall be made in the form attached in the Fourth Schedule to these rules. (5) All notifications under this rule shall be published in the official Gazette. 11. Copies of notifications.---Copies of all notifications issued under the rule last hereinbefore shall be provided, as soon as possible, to Local Governments, members of the Provincial Finance Commission and any other agency that the Secretary may direct. 12. Authorization of transfer.---(1) Upon any approval that may be required the Finance Department shall authorize transfer of the share as calculated of Local Government at the beginning of every calendar month, as soon as possible and not later than the third day of that month. (2) Authorization shall be communicated to the State Bank of Pakistan or any other authority responsible for transferring the amount to the Local Government and a copy of such authorization may be made available to Local Government. 13. Transfer of the share as calculated.---(1) The share of Local Government as calculated shall immediately be transferred to its account upon issuance of its authorization. (2) A certification of transfer shall be issued by the Local Government accounts office upon completion of transfer providing the total amount and date in the prescribed form and a copy may also be provided to the Local Government finance office. (3) A copy of the certification shall be provided to the Secretariat and to other offices as may be directed from time to time. 14. Banks. (1) The Finance Department may notify any bank to undertake functions for making over, holding or reporting of transfers. (2) Where any functions are given to a bank it shall provide all such reports as required by the Finance Department. 15. Cash balance.---(1) Cash balance in a Local Government account shall be communicated to the Secretariat as and when so required by the Secretary in accordance with a prescribed form. (2) Under no circumstances the cash balance or any amount thereof in a Local Government account shall be transferable to Government account or any other account. (3) Any difference detected is required to be rectified in accordance with the procedure laid down in Account Code Vol-IV in consultation with Finance Department and Accountant General Balochistan. CHAPTER - IV FINANCIAL REPORTS 16. Expenditure-Revenue Statement.---(1) The Local Government finance office shall provide monthly expenditure-revenue statement to the Secretariat in accordance with the form given in the Forth Schedule. (2) The Secretary may require quarterly and the end of year expenditure revenue statements from the Local Government and in such cases the Local Government shall provide these statements in accordance with the forms set out in the Fourth Schedule. 17. Local own source revenues.---(1) A statement of local own source revenues assessed and collected shall be provided to the Secretariat at the end of each quarter in a fiscal year by the Local Government finance office. (2) For the purpose of this report the Local Government finance office may attribute to assessment carried out by any agency provided that the estimates of assessment are not less than the ones used in its decision making. 18. Other transfers and amounts received.---Upon receipt of any funds other than the formula based transfers from the Province or local own source revenues the Local Government finance office shall report all funds received in their accounts to the Secretariat within a period of three months. 19. Project funds and investments.---Every officer in-charge of special spending arrangement shall report all expenditure incurred through his office to the respective finance office who in turn shall provide that information to the Secretariat in accordance with form set out in the Fourth Schedule provided that expenditures carried out under the approved budget of the Local Government shall not form part of this report. 20. Accounts reports.---(1) Local Government accounts offices shall forward appropriation account and finance account statements to the Secretariat in accordance with the forms for the time being in force. (2) All such reports will be submitted before the end of third quarter of the fiscal year following the year for which reports are being formulated. (3) In case where certified accounts are pending finalization a report based on draft accounts may be provided. (4) Where a report is based on draft accounts it shall be mentioned in the report. (5) Where a report has been provided on the basis of draft accounts, upon certification of accounts a second report shall be provided with appropriate reference made to the earlier report. CHAPTER V RESPONSIBILITIES AND POWERS 21. Reporting Officer.---(1) Any reporting officer while submitting a report under these rules, unless otherwise provided, shall submit such a report to the Secretariat within the prescribed or required time period if an approval has not been given for such submission in time. (2) No disciplinary or administrative proceedings shall be admissible against a reporting officer for submission of such a report, unless they be on grounds other than those specified in sub-rule (1) last hereinbefore. 22. Duties of Local Government finance and accounts offices.---(1) Duties of Local Government finance and accounts offices shall include maintenance of record of monthly and periodic transfers in prescribed form as set out in the Fourth Schedule. (2) A copy of the record shall be provided to the Secretariat at the end of each fiscal year not later than expiry of the first calendar month of the succeeding fiscal year. 23. Responsibility for the veracity of the reports.---(1) The Zila Nazim and the District Coordination Officer shall be responsible for the veracity of all reports submitted by the District Government offices to the Secretariat. (2) The Tehsil or Town Nazim and Tehsil or Town Municipal Officer, as the case may be, shall be responsible for the veracity of all reports submitted by Tehsil or Town Municipal Administration offices to the Secretariat. (3) The Union Nazim and the Secretary of Union Administration shall be responsible for the veracity of all reports submitted by the Union Administration to the Secretariat. 24. Responsibility of the Accountant General.---(1) The Accountant General, Treasury officer/District Accounts officers shall ensure timely and correct submission of reports to the Secretariat from district accounts officers under these rules. (2) The Director Local Fund Audit, or any other authority designated for the administration of Tehsil or Town Municipal Administration and Union Administration accounts, shall ensure the timely and correct submission of reports to the Secretariat. 25. Special powers of the Secretary.---(1) If so authorized by the Provincial Finance Commission, the Secretary may require any special reports on or related to Local Government finance from the Accountant General, Director Local Fund Audit or any other authority designated for administration of Tehsil or Town Municipal Administration and Union Administration accounts relating to their respective administrative jurisdictions. (2) The Secretary, in case of reports which are not submitted in time, or are submitted incorrectly or are incomplete, may recommend action to the authority empowered under the law against the Local Government finance office, Local Government accounts office or any Local Government officer in-charge or any other person responsible, as the case may be, provided that in such cases prior notice shall be given to the local executive setting out the reasons for such action. (3) The authority to whom the action is recommended in each case shall undertake proceeding on such recommendation and provide a final report to the Secretary within an appropriate time period. (4) To ensure carrying out the functions and purposes of the Provincial Finance Commission the Secretary may require any information from any agency carrying out functions in the Province relating to Local Government finance to be laid before the Secretariat. CHAPTER - VI DISCREPANCIES AND DELAYS IN TRANSFERS 26. Discrepancy in the transfer.---(1) A transfer less than the share of a Local Government as calculated shall be deemed a discrepancy. (2) Any discrepancy in the transfer made to a Local Government shall be reported to the Provincial Finance Commission before the end of the quarter by the Secretariat and the Provincial Finance Commission may take any action deemed fit under the law. 27. Delay in the transfer.---(1) Whenever a transfer due to a Local Government in accordance with the share as calculated is not made within the prescribed time period it shall amount to a delay. (2) Any delay in the transfer for which a Local Government is eligible in accordance with the notifications, for whatsoever reason, shall be recorded by Secretariat and reported to the Provincial Finance Commission in the next following meeting and the Provincial Finance Commission may take any action deemed fit under the law. CHAPTER - VII MISCELLANEOUS 28. Annual Report.---(1) Draft annual report of the Provincial Finance Commission shall be prepared by the Secretariat before the end of the first quarter of each fiscal year, keeping in view the time required for consideration by the Provincial Finance Commission, and present it to the Secretary who shall lay it before the Provincial Finance Commission. (2) The draft report upon approval by the Provincial Finance Commission shall be finalized by the Secretariat. (3) Annual report shall be published by the Secretariat and copies will be provided to each District Government and Tehsil or Town Municipal Administration in the Province for laying it before the respective Council. (4) Annual report shall be in the prescribed form given in the Third Schedule. 29. Timeliness of reports.---Reporting officers and others agencies shall be responsible for submission of reports or completion of actions, as the case may be, in accordance with the timeframes specified in the First Schedule to these rules. 30. Powers of the Provincial Finance Commission.---Nothing contained in these rules shall be deemed to impose any limits on the powers of the Provincial Finance Commission to require any reports from any Federal, Provincial or a Local Government, or from any authority, corporation, body, or organization established by or under law or which is owned or controlled by any Government or in which any of the Governments has a controlling interest or any other source. FIRST SCHEDULE TIMEFRAMES FOR VARIOUS IMPORTANT ACTIVITIES Activity Responsibility Timeframe Preparation of technical briefs for Provincial Finance Commission meetings Provincial Finance Commission Secretariat Periodic, as and when required Preparation of necessary documents for Provincial Finance Commission meetings Provincal Finance Commission Secretariat Periodic, as and when required Maintenance and updating of inter-governmental data- base Provincial Finance Commission Secretariat Periodic Carrying out monitoring of receipt of funds by Local Government Provincial Finance Commission Secretariat Second week of every month Carrying out analysis of local Government finance Provincial Finance Commission Secretariat Periodic as and when required Carrying out analysis of Provincial finances Provincial Finance Commission Secretariat Periodic as and when required Preparation and maintenance of data relating to Local Government Provincial Finance Commission Secretariat Periodic, as and when required. Evaluation of impact of fiscal transfers on Local Governments Provincial Finance Commission Secretariat Annual Commissioning of special research and studies relating to inter-governmental finance Provincial Finance Commission Secretariat Annual Preparation of draft Annual Report Provincial Finance Commission Secretariat Annual Publication of Annual Report of the Provincial Finance Commission Provincial Finance Commission Secretariat Before the end of first quarter in every fiscal year Provision of periodic reports on Local Government Finance to the Secretary Provincial Finance Commission Secretariat Periodic, as and when required Notification of shares of local Government Provincial Finance Commission Secretariat March (before a fiscal year begins) Publishing of notification of Local Government shares in official Gazette Provincial Finance Commission Secretariat March (before a fiscal year begins) Authorization of transfer to LGs Provincial Finance Commission Secretariat Beginning of every calendar month not later than the third day of the month Communication of Authorization to the State Bank of Pakistan Provincial Finance Commission secretariat Same day as notified Transfer of the share as calculated to LGs Provincial Finance Commission Secretariat Within three days of the issuance of authorization Issuance of certification of transfer Local Government accounts Office Upon completion of transfer not later than the last working day of the first week of every calendar month Provision of copy of the certification to the Secretariat and other offices Local Government accounts office Within three days of receipt of funds Provision of monthly expenditure-revenue statement to the Secretariat Local Government finance office Not later than the tenth day of a calendar month Quarterly and end of year expenditure-revenue statements Local Government Within 15 days of the end of the quarter to which the statement relates and end of the first quarter of the next fiscal year following the year to which the annual statement relates. Reporting of all funds received in their accounts to the Secretariat Local Government finance office Not later than the last working day of the first week of every calendar month Reporting of all expenditure incurred (through the local Government office) to the respective finance office and to the secretariat Local Government Office incharge In the first week after the end of the quarter Accounts reports Local Government accounts offices Before the end of the fiscal year following the year for which reports are being formulated Provision of special reports required by the Secretary Provincial Finance Commission related to Local Government finance Accountant General, Director Local Fund Audit or any other authority designated for administration of Tehsil or Town Municipal Administration and Union Administration accounts Periodic, within fifteen days of request Preparation of Draft Provincial Finance Commission annual report Provincial Finance Commission Secretariat Before 15th August Publication of Provincial Finance Commission Annual report Provincial Finance Commission Secretariat Before 15th September Provision of copies of the Provincial Finance Commission annual report to each District Government and Tehsil or Town Municipal Administration in the Province Provincial Finance Commission Secretariat Before 30th September Maintenance of record of monthly and periodic transfers in prescribed form in accordance with the Fourth Schedule Local Government Finance and accounts offices Continuous Provision of monthly record of transfers in prescribed form in accordance with the Fourth Schedule the Secretariat Local Government finance and accounts offices Not later than the 5th of the next month following the month to which the statement relates Provision of annual report on record of transfers in prescribed form in accordance with the Fourth Schedule to the Secretariat Local Government finance and accounts offices End of each fiscal year not later than 31 July SECOND SCHEDULE Data that shall be maintained by the Secretariat (Under Rule 7) Part A (Rule 7, sub-rule (2)) (Disaggregated by District, Tehsil, Town and where possible by union) 1. Expenditure of Local Government, function and objectwise; 2. Revenue of Local Government, item-wise; 3. Transfers received by Local Government , all categories; 4. Data on specific issues in accordance with Provincial Finance Commission award; 5. Data on implementation of conditionalities that may be attached to any transfers; and 6. Any matters specifically assigned by the Provincial Finance Commission. Part B (Rule 7, sub-rule (4)) (Disaggregated by District, Tehsil, Town and where possible by union, or as otherwise specified by the Secretary) 1. Population, with projected increase over time; 2. Area of Local Government; 3. Service levels in a Local Government jurisdiction, all services; 4. Land, by various categories of usage and tillage; 5. Industry and other economic activity; 6. Social indicators; 7. Economic indicators; 8. Estimates of personal and household income and expenditure; 9. Measures of various local tax bases; and 10. Cost of service delivery, by category. THIRD SCHEDULE Recommended Form for the Provincial Finance Commission Annual Report Objectives The Annual report of the Provincial Finance Commission will be meant to inform the citizenry about how public funds have been managed to their benefit and at the same time afford them an opportunity to assess the performance of the Provincial Finance Commission. The report will also facilitate the Provincial Government in bringing about changes in the previous years fiscal policy that would lead to improved transfer and allocation practices for the future. Analysis The report will offer a detailed analysis of the general health of the provincial economy and will provide information that will guide policy makers to enable them to incorporate changes and make adjustments in the distribution of funds and allied policies of tapping into new sources of revenue. It will also serve and material for dialogue and action to enable the Provincial leadership in suggesting a way forward for the economic well being and uplift of the population in general. For the Provincial Finance Commission Secretariat it will serve as a mirror for reflecting on the past years formulae for resource distribution. The report will also offer a: (1) Tool for analyzing the utilization and source of available resources.---Through the Provincial Finance Commission award the province decides how it would spend the total resources available for that year. The report will provide detail of how much the respective Local Governments spend. It will identify the source of funds and help identify separately the respective shares provided by the Federal and sub national levels of Government. (2) Financial management tool.---The report will provide detail on the financial condition of the province and local Governments. It will include detailed information regarding budget balances, the results of audit, liabilities being carried over, ending balances of the Local Governments and figures for helping elucidate the level of disparity in overall fiscal health. Indicators of fiscal management such as whether books are being properly kept and whether there has been either a financial or program audit are additional tools in the report that will facilitate financial management. (3) Comparative analysis of the Provincial economy.---The report will provide an opportunity for Provincial policy makers to make comparisons with fiscal policies of other provincial Governments. It will also help identify the disparities in economic growth among the various Local Governments and regions of the Province, and help policy makers gauge whether these differences are increasing or decreasing. In the Provincial Finance Commission report policy makers will be able to pinpoint the major economic issues which will affect the performance of the intergovernmental transfer system. (4) Means to bridge expenditure abnormalities.---The report will present an analysis of expenditure patterns for each level of Government through which clear identification of areas of growth as well as stagnation will be identified. Similarly public employment levels and patterns will be deduced through the study of expenditure patterns. (5) Identification of revenue sources, improvement in own source revenue.---The report will present an analysis of revenue patterns by level of Government and show revenue growth by source. This will include own source revenues, and an analysis of the dependence on transfers. (6) Evaluation of the Transfer Formula identifying successes and shortfalls.---Provincial Finance Commission distribution formulae may not hold true and effective over an extended period. The report in this case will provide indicators for analysis which will be used to retune (if required) the intergovernmental transfer system used by the Province. Similarly, the impact of the transfer formula as well as suggestions for change and adjustments will be facilitated through the report. (7) Innovation.---The report will not just be providing information on what has been undertaken over the fiscal year but will also serve as a source of novel ideas which the Provincial Finance Commission may take up for inclusion in future award. The addition of special studies on innovative ideas and practices that will be included in the report will facilitate the generation of dialogue on subjects such as: (a) Equalization evaluation (b) Alternatives for own revenue mobilization (c) Public employment levels and disparities (8) Presenting a way forward. The report will conclude with the presentation of challenges and issues where the major hurdles to be overcome in developing an intergovernmental fiscal system that will match the objectives of the provincial policy will be streamlined for action. These will include Province level issues such as poor fiscal management by some Local Governments, growing disparities within the regions and the need to accommodate these, etc. Also issues of relationship between the Province and the Federal Government on matters such as a proposed new revenue sharing scheme, or proposed new legislation on natural resource taxation that might affect the provincial and local Government budgets may be taken cognizance of in the Provincial Finance Commission report. FOURTH SCHEDULE Forms Form FTR 1 Notification of PCF (See Rule 9) Government of Balochistan, Provincial Finance Commission Secretariat Dated In exercise of powers conferred under section 120(D) of the Balochistan Local Government Ordinance, 2001, the Governor of Balochsitan on the recommendation of Provincial Finance Commission is pleased to specify the size of Provincial Consolidated Fund and its distribution into Provincial Allocable and Provincial Retained amounts for the Province of Balochistan as under: Rs. Provincial Consolidated Fund ________________ Provincial Retained Amount _________________ Provincial Allocable Amount _________________ FTR 2 Notification of Determined Share for Three Years (See Rule 10) Government of Balochistan, Provincial Finance Commission Secretariat Dated In exercise of powers conferred under section 120(D)(6) of the Balochistan Local Government Ordinance, 2001, the Governor of Balochistan on the recommendation of the Provincial Finance Commission is pleased to specify the following award separately indicating the Provincial Allocable and Provincial Retained amounts and the inter se shares of the Local Government for three years starting from_______(year). Provincial Retained Amount _______________ Provincial Allocable Amount ________________ Name of Local Government Districts Inter se share TMAs FTR 3 Notification of Determined Share for One Year (See Rule 10) Government of Balochistan, Provincial Finance Commission Secretariat Dated In exercise of powers conferred under section 120(D)(6) of the Balochistan Local Government Ordinance, 2001, the Governor of Balochistan on the recommendation of the Provincial Finance Commission is pleased to specify the following award separately indicating the Provincial Allocable and Provincial Retained amounts and the inter se shares of the Local Government for the year ending June 30, 20_______ Provincial Retained Amount _______________ Provincial Allocable Amount ________________ Name of Local Government Districts Inter se share TMAs FTR 4 Authorisation of transfers (See Rule 12) Government of Balochistan, Provincial Finance Commission Secretariat Dated ORDER In pursuance of the Provincial Finance Commission Award Order No.__________, dated _____, 20_____ sanction is hereby accorded to release an amount of Rs._________for credit to (District/Local Fund) for the month of_________,20______as single line resources transfer to respective Account of each Local Government, per contra debit to Balochistan Government Account No.1 (as per the specified head of account). Name of Local Government Districts Inter se share TMAs FTR 5 Notification of calculated Share (See Rule 13) Government of Balochistan, Provincial Finance Commission Secretariat Dated In exercise of powers conferred under section 120(D)(6) of the Balochistan Local Government Ordinance, 2001, the Governor of Balochistan on the recommendation of Provincial Finance Commission is pleased to specify the following calculated share of individual Local Governments for the year ending June 30, 20______, based on the actual size of the Provincial Consolidated Fund. Provincial Retained Amount _______________ Provincial Allocable Amount ________________ Name of Local Government Districts Inter se share TMAs Form FTR 6 Certification of Receipts (See Rule 13) On the basis of statement of receipts provided by the State Bank of Pakistan/National Bank of Pakistan, the bank__________, (name of branch) in respect of _____________(name of) Local Government, it is certified that a sum of Rs.______________, has been credited in the account of the Local Government______________(name) during the month of___________, 20 . Signed District/Tehsil Accounts Officer Union Accountant Stamped FTR 7 Cash Balance as at 30,_______20 Local Government____________ (See Rule 15) Rs Opening Balance as on 1st of ______, 20 __________ Add: Receipts during the month __________ Less: Payments made during the month __________ Closing balance as on 30th of ______, 20 __________ Form FTR 8 B Monthly Receipts Report for_________, 20 District Government_________ Major/Minor/Detailed Receipts Heads Previous months Actual for the month Progressive Total Includes all sources of receipts of District Government including transfers from Provincial Government Transfers in lieu of octroi and Zilla tax to be shown separately. Filed by EDO F & P Form FTR 8 C (See Rule 16) Monthly Receipts Report for_________, 20_____ Tehsil Municipal Administration_________ Major/Minor/Detailed Receipts Heads Previous months Actual for the month Progressive Total Includes receipts from all sources of TMA Transfers from Provincial Government to be shown separately.. Filed by TO(F) Form FTR 9 B (See Rule 16) Quarterly Receipts Report for_________, 20____ District Government_________ Major/Minor/Detailed Receipts Heads Previous quarter Actual for the quarter Progressive Total Includes all sources of receipts of District Government including transfers from Provincial Government Transfers in lieu of octroi and Zila tax to be shown separately. Filed by EDO F & P Form FTR 9 C (See Rule 16) Quarterly Receipts Report for_________, 20____ Tehsil Municipal Administration_________ Major/Minor/Detailed Receipts Heads Previous months Actual for the month Progressive Total Includes receipts from all sources of TMA. Transfers from Provincial Government to be shown separately. Filed by TO (F) Form FTR 10 B (See Rule 16) Annual Receipts Report for_________, 20___ District Government________ Major/Minor/Detailed Receipts Heads Rs. Total: Include receipts from all sources of the District Government. Receipts from Provincial Government to be shown separately. Receipt in lieu of octroi and Zila tax to be shown separately. Filed in by EDOF&P Form FTR 10 C (See Rule 16) Annual Receipts Report for_________, 20___ District Government________ Major/Minor/Detailed Receipts Heads Rs. Total: Include receipts from all sources of TMA. Receipts from Provincial Government to be shown separately. Filed by TOF Form FTR 11 (See Rule 17) Monthly Receipts Report for_______, 20____ Local Government_________ Major/Minor/Detailed Receipts Heads Previous months Actual for the month Progressive Total: Receipts of Local Government excluding transfer from Provincial Government Filed in by EDO F & P and TO (F). Form FTR 12 (See Rule 18) Monthly Receipts Report for_________20 Local Government_________ Major/Minor/Detailed Receipts Heads Previous months Actual for the month Progressive Transfer from Provincial Government (other than grants transferred under PFC) Grants received from Federal Government Total Receipts of Provincial Government other than under PFC award will be listed. Receipts from Federal Government to be included also. Form FTR 13 (See Rule 19) Project Funds and Investments Local Government No. Name of project Opening Balance Transferred during the month Payments made during the month Balance 1 2 5 6 7 8 9 10 11 12 Total For vertical projects not included in the Local Government Budget. Filed by EDO F & P Form FTR 14 (See Rule 20) Overall Abstract of Accounts Month Opening Balance Rs. Receipts Receipts Local Government Fund Receipts Public Account Total Receipts Expenditure Local Government Fund Current Development Public account Total Expenditure Closing Balance Form FTR 14 A (See Rule 20) Monthly Account Receipts Month___________ Local Government____________ Major/Minor/Detailed Receipt Heads Budget Estimates for year Previous Month Actual for the month Progressive Total Form FTR 15 (See Rule 22) Funds received from Provincial Government Local Government No. Months Share as determined by PFC Funds received in account Deviation Date of receipt 1 2 (2-1) 1 July 2 August 3 September 4 October 5 November 6 December 7 January 8 February 9 March 10 April 11 May 12 June Total Filled by EDOC&P and TO(F) Transfer in lieu of octroi and Zila tax shall be recorded separately