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BALOCHISTAN LOCAL GOVERNMENT (AMENDMENT) ORDINANCE, 2002 BALOCHISTAN LOCAL GOVERNMENT (AMENDMENT) ORDINANCE, 2002 ORDINANCE XII OF 2002 An Ordinance further to amend the Balochistan Local Government Ordinance, 2002 [Gazette of Balochistan, Extraordinary, 5th August, 2002] No Legis: 1-122/Law/2001-VII, dated 5-8-2002.--The following Ordinance made by the Governor of Balochistan on 2nd August, 2002, is hereby published for general information: 16. Addition of Chapter XII-A in Ordinance XVII of 2001.---In the said Ordinance, after Chapter XII, as so substituted, the following new Chapter XII-A shall be added, namely:- "CHAPTER XII-A PROVINCIAL FINANCE COMMISSION AND FISCAL TRANSFERS 120-A. Establishment of Provincial Finance Commission.--On coming into force of this Chapter, the Governor of Balochistan forthwith shall constitute a Provincial Finance Commission for the Balochistan Province hereinafter referred to as the Finance Commission. 120-B. Membership.---(1) The Finance Commission shall consist of five members including Chairman: Provided that there shall be one expert in the field of the Public Administration, to be nominated by the Governor: (2) Four members shall be ex-officio, namely: (i) the Minister for Finance of the Province, shall be the Chairman of the Finance Commission, and in his absence for, whatsoever reasons, the members may elect one of the members present to be Chairman in the mariner prescribed for the duration of his absence, (ii) the Additional Chief Secretary Development 'Government of Balochistan. (iii) the Secretary to Government of Balochistan, Local Government Department. (iv) the Secretary to the Government of Balochistan, Finance Department who shall also be Secretary of the Provincial Finance Commission. (3) The Finance Department shall provide secretarial support to the Commission. (4) No proceedings or act of Finance Commission shall be invalid merely on the ground of existence of vacancy in order defect in the composition of the Finance Commission. 120-C. Functions Duties and Powers of the Finance Commission.- (1) The functions, duties and powers of the Finance Commission shall be to make recommendations to the Governor for: (a) a formula for distribution of resources including: (i) distribution between the Government and the District Government out of the proceeds of the Provincial consolidated Fund into a Provincial Retained Amount and a Provincial Allocable Amount respectively: Provided that in no case the Provincial Allocable Amount shall be so determined that it is less than the funds transferred to District Governments in the financial year 2001-2002 and the establishment charges budgeted for the functions of Local Governments in the same year, excluding transfers in lieu of Octroi and Zila Taxes: Provided further that all the monies received by the Government in lieu of Octroi and Zila Taxes shall be added to the Provincial Allocable Amount, separately. (ii) distribution of the Provincial Allocable Amount amongst the District Governments Tehsil and Tehsil Municipal Administrations and the Union Administrations as their shares; (2) The recommendations shall be based on the principles of fiscal needs, fiscal capacity, fiscal efforts and performance. (3) Before finalization of the recommendations under subsection (1), the Finance Commission may hold consultations with the relevant Departments of the Government, Local Governments and, in the discretion of the Finance Commission, with any other body or persons. (4) As soon as may be after receiving the recommendations of the Finance Commission, the Governor shall by order specify in accordance with the recommendations of the Finance Commission under clause (a) of subsection (1), the Provincial Retained Amount and the Provincial Allocable Amount, and in turn the shares inter see of the Local Governments and the share shall be paid to the Local Government concerned promptly in accordance with the laid down procedure. (5) The Provincial Allocable Amount and shares of the Local Government calculated each year in accordance with the Order made undo: subsection (6) shall be laid before the Provincial Assembly. (6) The Governor may, by Order, also grants in aid of the revenues of the Local Government in need of assistance. 120-D. Certain Institutional Process of the Finance Commission. (1) In every financial year, at least three months before the finalization of the Provincial Budget, the Finance Commission shall require the Finance Department to submit a statement of estimated revenues and expenditures of the Government for the following financial year and shall also required a statement of the Provincial Allocable Amount and its distribution prepared in the light of the Order under subsection (4) of section 120-C. (2) The Finance Department may provide the Finance Commission with a statement of the Provincial Allocable Amount and its distribution, prepared in accordance with the Order under subsection (4) of section 120-C, on approval of the Provincial Budget. (3) The Finance Commission may cause any information required for making assessments and decisions of fiscal transfers to be placed before it from any organization or office of the Government, or Local Government. (4) The Finance Commission shall take all decisions by a majority of members present and voting. (5) The Finance Commission shall present to the Government and Local Governments an annual report on fiscal transfers and Local Government resources: 120-E. Formula and its application and revision.---(1) The releases 4 Provincial Allocable Amount and shares of the Local Government shall be made on the basis of actual monthly receipts of the Government. (2) The Order shall remain in force for a period of three years. (3) At least six months before the expiry of the aforesaid period, the Finance Commission shall recommend the formula for the next period, in accordance with subsection (1) of section 120-C, on the basis of evaluation of impact of the fiscal transfers of the Local Governments and other relevant matters. (4) Any evaluation similar to the objectives of subsection (3) above carried out by an agency other than the Finance Commission may also be taken into consideration by the Finance Commission. (5) In case the recommendation is not finalized before the expiry of the Order under section 120-C, the Order in force shall continue to serve as the determinant of the Provincial Allocable Amount and the shares of the local Governments, as the case may be till such time that a new Order is made. 120-F. Obtaining of Data.---(1) The data required for the formulation and application of the formula shall be obtained by the Finance Commission from the Federal, Provincial or Local Governments, and to 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 share or interest or any other source. (2) The Finance Commission may, where it deems appropriate, institute data collection or recommend such collection to any agency and may also recommend to the government to bear the cost of such data collection. 120-G. Certification Requirements for Fiscal transfers. ---(1) The Finance Commission in consultation with the Government shall determine the requirements for certification of fiscal transfers. (2) Certifications under subsection (1) shall, inter alia, include the following: (a) Provincial Allocable Amount and its calculation; (b) transfer of funds in accordance with determined shares to the District Governments, Tehsil Municipal Administration; Town Municipal Administration and the non Administrations in the Province; (c) revenues and expenditures of the Government and Local Governments. (3) In case where the institutional process of the Government or the Local Government generate data required for administrations of fiscal transfers, the Finance Commission may recommend further requirements for certification. (4) The certification required by the Finance Commission shall be furnished to the Finance Commission by the Government, Local Governments, any relevant agency connected with the Government or the Federal Government. 120-H. Reference by Provincial Government or Local Government to the Finance Commission. ---The Government or a Local Government may seek redress of grievance, relating to any matter connected with fiscal transfers by the Government concerning itself or another Local Government by making a reference to the Finance Commission alongwith the grounds of such grievance whereupon the Finance Commission may take a decision for the purpose of redress of grievance provided that the decision so made shall no change the Order in force under subsection (5) of section 120-C or the shares of the Local Government. 120-I. Procedural powers of the Finance Commission. ---Nothing contained in this Chapter shall be construed to impose limits on the powers of the Finance Commission under any law for the time being in force as regards calling for any information relating to the fiscal transfer formula and transfer formula and transfer of funds and shall have the procedure, 1908 (Act No. V of 1908)."