The Punjab government has earmarked Rs 7.7 billion for the Local Government and Community Development (LG&CD) in the provincial budget 2009-10, reducing the allocation by Rs 710 million as compared to the amount earmarked in last year's budget. The white paper states that the reduction in the allocation for local government has occurred mainly due to resource availability constraints.
In the budget for 2008-09, the government had allocated Rs 8.41 billion and later revised it to Rs 8.544 billion. From the total allocation, Rs 2.7 billion has been set aside for LG&CD's regular programmes, Rs 2 billion for Katchi Abadis' development, and Rs 3 billion for the Punjab Development Programme (PDP).
According to the development programme for the next fiscal year, the PDP will be continued with an allocation of Rs 3 billion to finance locally identified small scale development schemes for improvement of local social infrastructure and for generating employment opportunities for poverty alleviation.
Katchi Abadis Development Programme will be implemented with a modified approach whereby in addition to the regular development activities, a holistic development model will be formulated by a strengthened Directorate General of Katchi Abadies for select Katchi Abadies. Options for high-rise development would be explored whereby suitably located Abadies would be accommodated in modern flats, and land thus spared would be used for financing such development.
Southern Punjab Basic Urban Services Project with a total cost of Rs 7458.920 million, covering 21 towns in 6 districts (Multan, Rajanpur, D.G. Khan, Bahawalpur, Khanewal and Muzaffargarh) would be completed during the year.
And, Punjab Municipal Improvement Services Project would be continued for development of municipal infrastructure (ie water supply, sewerage, solid waste management, drainage, street lighting, roads, parks, bus stands, bridges and fire fighting and capacity building of selected TMAs). The paper noted that local level development and provision of civic services in both urban and rural areas is the function of district, tehsil and union council governments.