Allocation of development funds to districts: PFC NWFP decides to go with previous formula

NWFP Finance Commission (PFC) in its meeting held under the chairmanship of the provincial finance minister, Mohammad Humayun Khan, decided to allocate more development funds to the districts on the previously fixed formula, while the non-salary budget would be sanctioned on need basis in respect of all the districts in NWFP.
Former Chief Secretary of NWFP and Chairman of the Commission Saeedullah Jan, Secretary Finance Zia-ur Rahman, secretaries Local Government and P&D, Provincial Finance Controller, District Nazim Dir Upper Sahibzada Tariqullah and other members of the Commission and concerned officers attended the meeting. The meeting reviewed and discussed minutes of the previous meetings of the commission and worked out a joint strategy for implementation of the recommendations.
It was decided that the existing development funds in all the districts would be left intact and additional funds would be provided wherever necessary. 10 percent increase in the POL, Sui gas and electricity was also allowed and it was decided that the increase would also be revised in due course. It was also stated that the saved funds would be diverted and utilised in other sectors.
The commission took notice of the poor capacity demonstrated on the part of the officers of the district finance and P&D departments and expressed with concern that due to lack of knowledge to properly maintain and utilise development grants in respect of many of the districts, huge sum of uplift funds remained unutilised which created difficulties in further allocations.
A committee under the chair of the finance minister was set up to work out recommendations in this regard. It was observed that due to the posting of irrelevant officers as EDOs Finance and P&D in the districts was resulting in such situation and lapse of funds.
The commission also allowed continuation of the allocation of 10 percent developmental funds for the Chief Minister's directives as usual. It was also discussed that the PFCA would continue for the next three years till further directives were issued in this regard. The minister finance expressed gratitude to the participants on taking bold decisions for the larger interests of the people.