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ORDINANCE XVIII OF 2001 ORDINANCE XVIII OF 2001 BALOCHISTAN LOCAL GOVERNMENT ORDINANCE, 2001 An Ordinance to establish, reconstruct and regulate the Local Governments in the Province of Balochistan [Gazette of Balochistan, Extraordinary, 9th August, 2001] No. Legis:I‑122/Law/2000‑111, dated 9‑8‑2001.‑‑‑The following Ordinance made by the Governor of Balochistan on 8th August, 2001 is hereby published for general information: Whereas it is expedient to devolve political power and decentralize administrative and financial authority to accountable Local Governments for good governance, effective delivery of services and transparent decision making through institutionalized participation of the people at grass‑root level; And whereas the Provincial Assembly of Balochistan is dissolved, the Governor is satisfied that circumstances exist which render it necessary to take immediate action; Now, therefore, in pursuance of Article 4 of the Provisional Constitution (Amendment) Order, 1999 (Chief Executive's Order No.9 of 1999 and in exercise of all powers enabling in that behalf, the Governor of Balochistan is pleased to make and promulgate the following Ordinance:‑‑ CHAPTER XII LOCAL GOVERNMENT FINANCE 109. Application of Local Funds and Provincial Accounts.‑‑‑(1) The funds credited to a Local Fund or a Provincial Account shall be expended by a Local Government in accordance with the budget approved by the concerned Council. (2) A District Government shall transfer from its District Provincial Account, by monthly installments, to the Local Fund of Tehsil Municipal Administrations or Town Municipal Administrations, as the case may be, monies equivalent to the total of the annual Octroi grants made to the Urban Local Councils within the local area of the Tehsil Municipal Administrations or Town Municipal Administrations as existed, immediately before the commencement of this Ordinance. (3) A District Government may transfer to a Tehsil Municipal Administration or Town Municipal Administration monies additional to those referred to in subsection (2) as given in the approved budget of the District Government: Provided that‑‑ (a) such monies transferred from its District Provincial Account shall be transferred to the Tehsil Provincial Account or the Town Provincial Account, as the case may be; (b) such monies transferred from the Local Fund of the District Government shall be transferred to the Local Fund of the Tehsil Municipal Administration or Town Municipal Administration. (4) The District Government shall transfer, by monthly installments, from its District Provincial Account to the Local Fund of each Union Administration in its local area; an equivalent amount of the total Zila Tax grant for that district to each Union Local Fund. (5) A Local Government may subject to subsection (3), transfer approved budgeted amounts to any Local Government, Village Council or Neighbourhood Council or Citizen Community Board, within its local area, for expenditure for carrying out a project, service or activity transferred to, or managed by, the recipient Local Government, Village Council, Neighbourhood Council or Citizen Community Board. (6) No Local Government shall transfer monies to a higher level of Local Government except by way of repayment of debts. (7) Monies credited to a District Provincial Account or a Tehsil Provincial Account or a Town Provincial Account shall not be used for payment of salaries. (8) The monies transferred under subsections (2) and (4) shall be charged on the District Provincial Account. (9) Where a new Local Government is to take over during a financial year as a result of fresh elections, the outgoing Local Government shall not spend funds or make commitments for any expenditure, under any budget head; in excess of eight per cent. per mensum of the budgeted funds for the remainder of its term in office in that financial year. (10) The application of a Local Fund shall as provided in the budget approved by a Council, shall be subject to budgetary constraints by ratio to be prescribed for development works and expenditure on establishment (11) Where expenditure from a Local Fund on development is less than fifty per cent. of the Local Fund, the development component shall increase, in equal successive increments over three years, from its current level so as ensure a fifty per cent. development expenditure by the ends of the said three years. (12) The development budget shall be prioritized in accordance with the bottom‑up. planning system as laid down in section 119; provided that--- (a) not less than fifty per cent. of the development budget shall be set apart for utilization in accordance with the provisions of section 119; and (b) the amount referred to in clause (a) which remains unspent shall be credited under the same head in the following year's budget in addition to the fresh allocation under the said clause for that year. (13) In every budget a provision shall be made for payment of performance incentive bonuses.