Lahore: The Punjab province government in Pakistan has plans afoot to provide more funds to the local governments than the money currently being given to respective districts for smooth sailing of the new administration system.
The Punjab government is working on developing a “modern allocation formula” to take care of the needs of respective districts in terms of fiscal equalization and equity.
Chief Minister Shahbaz Sharif is expected to give a final go-ahead to the funds disbursement formula being fine-tuned by a provincial finance committee comprising finance department officials, elected representatives and economists.
While the local governments will be funded through the Provincial Finance Commission award, the committee is making efforts to keep the funds distribution formula “simple” for its easy implementation by the respective local governments.
“We don’t want to make this system complex but simple,” a committee member said.
He states that the committee is making formula-based recommendations to meet different needs of different types of local governments in the province.
