Finance - Department Notifications 2005 (259-322)

Compendium of Instructions for Local Governments 259
No. FD.SR.1/28-1/2003
GOVERNMENT OF THE PUN1AB
FINANCE DEPARTMENT

Dated Lahore the 27
th
December, 2004

Subject: GRANT OF COMPUTER ALLOWANCE TO COMPUTER
PERSONNEL

Sir,

I am directed to reIer to para-14 oI this Department`s letter No. FD.PC-2-1/ 2001
dated 22-10-2001 on the above mentioned subject and to say that Governor oI the Punjab
has been pleased to approve that Computer Allowance presently admissible to Key Punch
Operators/Key Punch VeriIying Operators/Data Entry Operators at rate oI Rs.450/- per
month may be enhanced to Rs.750/- per month with immediate eIIect. Other terms &
conditions Ior grant oI this Allowance will remain unchanged.

2. Expenditure involved will be met out oI the existing budget oI the Departments
concerned.
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FINANCE DEPARTMENT

Dated Lahore, the 30
th
December, 2004.
NOTIFICATION

No. FD (FR) 11-5/82. In exercise oI the powers conIerred upon him under Article 119 oI
the Constitution oI Islamic Republic oI Pakistan, 1973, the Governor oI the Punjab is
pleased to direct that in Part-I OFFICERS IN CATEGORY-I oI the First Schedule to
the Delegation oI Financial Powers Rules, 1990, the Iollowing shall be added, with
immediate eIIect: -

Amendment:
66. The Project Director/ the Programme Manager, HIV/Aids Control
Programme, attached with the Government oI Punjab, Health Department.
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No. IT(FD)3-10/2004
FINANCE DEPARTMENT

Dated Lahore, the 10th January 2005

Subject: FINANCIAL PROCEDURE FOR THE IMPLEMENTATION OF
CHIEF MINISTER`S ACCELERATED PROGRAMME FOR SOCIAL
DEVELOPMENT.

260 inance Department
Kindly reIer to this department`s letter oI even number dated 27
th
September 2004,
on the above noted subject.

The procedure regarding the Ilow oI Iunds outlined in para 2(A)(i-iv) oI the letter
under reIerence essentially caters Ior the utilization oI the programme Iunds through the
Local Governments. However, certain schemes may also to be executed at the provincial
level, through the respective line departments.

3. It is, thereIore, clariIied that the programme Iunds Ior the schemes executed at the
provincial level will be released directly to the concerned executing department, and shall
be utilized in the manner as prescribed Ior execution oI development schemes. The
accounting, reporting and auditing procedure shall apply mutatis-mutandis.
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PROVINCIAL ASSEMBLY OF THE PUN1AB

No.PAP/PAC-II/2003/04/311 Dated: 13
th
January, 2005

Subject: SETTLEMENT OF AUDIT PARAS

I am directed to reIer to your circular No. FD(M-I)1-1/2001 dated 12
th
January,
2001 on the subject noted above and to state that in the meetings oI the Public Accounts
Committee it has been observed that in certain cases the Administrative Departments,
instead oI giving detailed explanation to the draIt para, only mention that the DraIt Para
had been discussed in the DAC/SDAC meeting and was settled.

2. I am thereIore directed to request you kindly to issue instructions to the
Administrative Departments that the DraIt Para which have been printed in the Audit
Reports may not be settled by the DAC/SDAC. However, the Iorums oI DAC & SDAC
must be utilized Ior settlement oI the audit observations and advance paras beIore they
are printed in the Audit Reports.
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FINANCE DEPARTMENT

th
January, 2005.
NOTIFICATION

No. FD. (FR) 11-5/82. In exercise oI the powers conIerred upon him under Article 119 oI
pleased to direct that in Part-I OFFICER IN CATEGORY-I oI the First Schedule to the
Delegation oI Financial Powers Rules. 1990, the Iollowing shall be added, with
immediate eIIect:

Amendment:
67. The Programme Director, Programme Support Unit (PSU). Devolved Social
Services Programme (DSSP), attached with the Government oI Punjab,
Health Department.
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No. Exp.(LG)1-41/2002
FINANCE DEPARTMENT

Dated Lahore the 27
th
January, 2005.

Subject: PROVISION OF FUNDS TO DISTRICT GOVERNMENT FOR
ADHOC/SPECIAL RELIEF TO GOVERNMENT EMPLOYEES.

I am directed to reIer to the subject noted above and to say that various Local
Governments are making requests Ior the recoupment oI Iunds against (periodic) increase
in the salaries allowed by them to their employees as Ad-hoc and Special RelieIs granted
during the Iinancial years 2003-2004 and 2004-2005. The District Governments are also
submitting claims Ior revised allocations under the PFC (Interim Award).

2. In this regard, I am to clariIy the position, as below, aIter approval by the ChieI
Minister:

(i) The provision oI additional Iunds to Local Governments on account oI
salaries increases, as above, is linked to an equivalent resource transIer by
the Federal Government to the province. Since no monies have been
provided on this account, the Provincial Government is not in a position to
meet this liability on behalI oI Local Governments. This stance being
consistent with Section 120 M oI the PLGO, 2001;

(ii) Any mathematical distortions in the PFC Interim Award, iI brought Iorth,
and Iound justiIied, would be suitably rationalized. Besides, provision oI
additional moneys to Local Governments are made at the judicious discretion
oI the ChieI Minister. The Local Governments are, thereIore, advised to
make out their cases with adequate statistical reasoning only.
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No. FD(M-I) 1-1/2001
FINANCE DEPARTMENT

th
January, 2005

Subject: SETTLEMENT OF DRAFT PARAS.

Sir,

I am to reIer to the Secretary Provincial Assembly oI the Punjab`s letter No.
PAP/PAC-II/2003/04/311, dated 13.1.2005, on the subject as cited above and to state that
the Public Accounts Committee-II, in its meetings, has observed that in certain cases the
Administrative Departments, instead oI giving detailed explanation to the DraIt Paras,
only mention that the draIt paras had been discussed in the DAC/SDAC meeting and was
settled. The PAC-II has Iurther directed that the DraIt Paras which have been printed in
the Audit Report may not be settled by the DAC/SDAC.
2. I am to invite your kind attention to Article 171 oI the Constitution whereby the
Audit Report oI the Auditor General oI Pakistan is to be placed beIore the Provincial
Assembly. It is the prerogative oI the Public Accounts Committee oI the Provincial
Assembly to consider and accept/settle the appropriation Accounts and Audit Reports
thereoI, reIerred to it by the Provincial Assembly under Rule 177 oI Procedure oI the
Provincial Assembly oI the Punjab, 1997.

3. I am, thereIore, to request you that the DraIt Paras included in the Audit Reports,
should not be discussed and settled by the DAC/SDAC. However, the Iorums oI DAC
and SDAC would be utilized Ior settlement oI the audit observations and advance paras
beIore they are printed in the Audit Reports. The aIoresaid instructions are in line with
earlier instructions contained in F.D`s letter No. FD (M-I)1-1/2001, dated 12.1.2001.

4. The aIoresaid instructions may please be complied with in letter and spirit.
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FINANCE DEPARTMENT

Dated Lahore, the 2
nd
February, 2005.
NOTIFICATION

pleased to direct that in Part-I OFFICERS IN CATEGORY-I oI the First Schedule to
immediate eIIect:-

Amendment:
68. Principals oI Nursing Schools attached with the Teaching Hospitals may
exercise the Financial Powers at par with Medical Superintendent oI the
Hospitals in the Punjab.
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FINANCE DEPARTMENT

th
February, 2005

NOTIFICATION

pleased to direct that in the Delegation oI Financial Powers Rules, 1990, the Iollowing
amendment shall be made, with immediate eIIect:

Amendment:
In Second Schedule, Part-II, Special Powers to Certain Departments and OIIicers-
Public Health Engineering Department, at Sr. No. l (Technical Sanction) against
(iv) under Column 3, Executive Engineer`, the existing entry in Column 4 under
heading 'extent the Iollowing shall be substituted:
'Works up to Rs.5.00 million

Further against Sr. No. 2 (Acceptance oI Tenders) against (iv) under Column 3
Executive Engineer`, the existing entry in Column 4 under heading 'extent, the
Iollowing shall be substituted:
'Works up to Rs.5.00 million

Note: The existing conditions applicable to accord Technical Sanctions and
acceptance oI Tenders shall remain the same.
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No. IT(FD)3-1/2005
FINANCE DEPARTMENT

th
February, 2005

Subject: PRESIDENTS RELIEF FUND FOR TSUNAMI VICTIMS -
CONTRIBUTION OF ONE DAYS BASIC SALARY BY ALL
OFFICERS IN BS-17 TO BS-22.
Sir,

I am directed to reIer to the subject noted above, and to state that in pursuance oI
the policy directive received Irom the Federal Government, it has been decided that all
oIIicers oI the Provincial Government, in BS-17 to BS-22 including those serving in the
local governments, as well as autonomous and semi-autonomous bodies, shall contribute
ONE DAY oI their pay towards the Presidents RelieI Fund Ior Tsunami Victims. This
decision shall also apply to oIIicers holding posts on contract in BS-17 and above
equivalent, as well as those drawing lump-sum pay packages, including 'M salaries and
MP salaries.

2. I am to state, that the deductions on account oI said contribution shall be made
against the salary Ior the month oI February 2005, and shall be credited to the Federal
Government in the Iollowing Head oI Accounts:

G 12-Special Deposit Fund
G 127-Other Funds
G 12765-Presidents RelieI Fund Ior Tsunami Victims

I am to Iurther state, that the amount oI contribution shall be excluded Irom the
emoluments oI the concerned oIIicers Ior the purpose oI calculation oI Income Tax, and
deduction oI recovery oI the house rent charges. AIter making deductions Irom salaries
disbursed Irom Account No.IV oI District Governments, and the Tehsil/Union Local
Funds, the procedure as prescribed Ior crediting Income Tax deductions shall be Iollowed
mutatis-mutandis.

4. I am to request an early action and strict compliance please.
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No. FD(FR) VI-9/2000 (P)
FINANCE DEPARTMENT

th
March, 2005

Subject: MATTERS PERTAINING TO PENSION OF THE EMPLOYEES OF
GOVERNMENT/ERSTWHILE LOCAL COUNCILS.

I am directed to reIer to the DCO, Bhakkar letter No.777/D.O(A/Cs)(F&P)/
BKR/2005, dated 07.02.05 addressed to the Secretary, LG&RD Department and a copy
endorsed to the Secretary, Finance Department on the subject as cited above, wherein
audit observation on the present mode oI issuing P.P.O by the District Administration in
Iavour oI retiring employees oI erstwhile Local Councils adjusted in Local Governments
has been discussed.

2. I am to state that the matter has been examined in the Finance Department. Finance
Department is oI the view that the staII oI erstwhile Zila Councils alongwith the staII oI
Education and Health sector oI the urban Local Councils (deIunct) adjusted in District
Government has not been given the status oI Civil Servants although they are under the
administrative control oI the respective District Govt. and getting their pay Irom the
District Government Account No.IV.

3. Further, the merger oI District Provincial Account and District Local Fund into
'District Fund, on the enIorcement oI Section 107 oI PLGO, 2001 (as amended) w.e.I
1.7.2002, created a diIIiculty with regard to payment oI pension to the aIorestated
employees oI the erstwhile Local Councils viz Zila Councils and L.M.C. in case oI City
District Government, Lahore and employees oI the erstwhile Zila Council and Municipal
Corporation/Municipal Committee/Town Committees in case oI the District
Governments other than the City District Government, Lahore. To overcome the
aIorestated diIIiculty, a special dispensation oI Pension Fund was made aIter the approval
oI the competent authority under Section 197 oI the Ordinance ibid vide No. SO-
IV(LG)1-10/ 2002, dated 23-10-2002. This special dispensation is separate and
independent Irom either District Fund under Section 107 ibid or Pension Fund oI the
Account No.1. The A.G. Punjab/District Accounts OIIices are authorized to operate
Account No.1 (P.C.F) and Account No. IV (District Fund), Ior payment oI salary or
pension etc., as the case may be, to the civil servant working in District Government. The
authority oI the A.G. Punjab/DAO has yet not been extended to the 'Pension Local
Fund oI the District Government.

4. I am accordingly directed to request you to apprise the stakeholders accordingly.
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FINANCE DEPARTMENT

Dated Lahore, the 6
th
April, 2005

NOTIFICATION

No. FD (FR) 11-36/79. In exercise oI the powers conIerred upon him under Article 119
oI the Constitution oI Islamic Republic oI Pakistan, 1973, the Governor oI the Punjab is
pleased to make the Iollowing amendment in Part-I under Second Schedule to the
Delegation oI Financial Powers Rules, 1990, with immediate eIIect:

Amendment:

Sr. # Nature of Power To whom delegated Extent
7. Powers to sell surplus or unserviceable
motor vehicles, T&P, machinery,
equipment, spares and stores by
auction.
(a) For Provincial Government
Departments.

(i) Administrative
Department
(ii) OIIicers in
Category-I in
D.D.S.C.
(iii) OIIicers in
Category-I
(iv) OIIicers in
Category-II
(v) OIIicers in
Category-III

Full powers

Full powers

Up to Rs.1.5 lac at a
time.
Up to Rs.1 lac at a
time
Up to Rs.5,000 at a
time.
(b) For District Governments
through District Development
Committees.
(i) D.C.O. in
D.D.C.

(ii) DCO/OIIicers
in Category-I
(iii) OIIicers in
Category-II
(iv) OIIicers in
Category-III
Full Powers.

Up to Rs.1.5 lac at a
time.
Up to Rs.1 lac at a
time.
Up to Rs.5,000 at a
time.

Aote I: The amounts indicated above reIer to un-depreciated book value.

Aote II: The constitution oI the District Disposal Committee and procedure Ior
auction/disposal oI motor vehicles, T&P, equipment, spares by auction is
being notiIied .separately.
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FINANCE DEPARTMENT

Dated Lahore, the 6
th
April, 2005

NOTIFICATION

No. FD (FR) 11-36/79. In exercise oI the powers conIerred upon him under Article 119
oI the Constitution oI Islamic Republic oI Pakistan, 1973, the Governor oI the Punjab has
been pleased to approve the constitution oI the District Disposal Committee and the
procedure Ior auction/disposal oI unserviceable, surplus and condemned
machinery/equipment/stores in the manner as prescribed hereunder:

1. The DCO oI the District Government/Category-I OIIicer
oI the concerned Department, as the case may be.
Convener
2. Superintending Engineer Irrigation oI the concerned Zone
or his representative not below the rank oI a BS-18
OIIicer.
Member
3. A representative oI Agriculture Engineering Department
not below the rank oI a BS-18 OIIicer.
Member
4. The EDO (W&S) or his representative not below the rank
oI a BS-18 OIIicer.
Member
5. A representative oI the department not below the rank oI a
BS-18 OIIicer.
Member
6. The Executive District OIIicer (F&P) Member/Secretary

2. The Iunction oI the District Disposal Committee would be to dispose oI
unserviceable and redundant equipment/machinery that have been declared unserviceable
or surplus in the department by the competent authority oI the respective department.

3. The Committee would adopt the Iollowing course oI action:

(i) To dispose oI surplus machinery/equipment by inviting sealed oIIers/tenders
aIter due publicity. The District Committee would have special powers to
accept or reject an oIIer.

(ii) The tenderers would be required to deposit earnest money 2 oI the value
oI their oIIers. This would be in the Iorm oI 'deposit at call or 'Bank DraIt
in the name oI Convener District Disposal Committee.

(iii) Each department will Iurnish list oI equipment/machinery with Iull
description, its conditions, location and reserve price (worked out in the light
oI Para 4.31 oI B&R Code) to the Secretary, District Disposal Committee on
month-to-month basis. The lists, aIter scrutiny, and consolidation would be
copied Ior supply to the bidders at Rs.50/- per page.

(iv) The sale proceeds oIIenders and equipment would be credited to Punjab
Government Account No. I under Revenue head:
1000000 NON-TAX RECEIPTS
1300000 MISCELLANEOUS RECEIPTS
391000 OTHER RECEIPTS
1391002 OTHER RECEIPTS - SALES OF STORES AND MATERIALS

(v) The general terms and conditions Ior sale would be draIted by each
Committee and got cleared Irom the Convener beIore calling tenders.

(vi) The cost oI advertisement/auction, iI any, would be borne by the respective
department, the machinery/tools, plants etc. whereoI are to be auctioned.

(vii) The Convener would submit quarterly progress reports to the respective
Administrative Department and Finance Department Ior the purpose oI
monitoring.

(viii) The record oI sale proceeds would be retained by the respective Department
Ior audit scrutiny etc.
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FINANCE DEPARTMENT

Dated Lahore, the 6
th
April, 2005
NOTIFICATION

pleased to direct that in Part-I OFFICERS IN CATEGORY-I oI the First Schedule to the
Delegation oI Financial Powers Rules, 1990, the Iollowing shall be added, with
immediate eIIect:

Amendment:
68. The Head, Project Management OIIice/Project Director oI the Project oI
Taunsa Barrage, Rehabilitation and Modernization attached with the
Government oI the Punjab, Irrigation and Power Department.
----------

FINANCE DEPARTMENT

Dated Lahore, the 6
th
April, 2005.
NOTIFICATION

pleased to direct that in Part-II OFFICERS IN CATEGORY-II oI the First Schedule to
immediate eIIect:

Amendment
29. The Director, Project Management OIIice oI the Project oI Taunsa Barrage,
Rehabilitation and Modernization, attached with the Government oI the
Punjab, Irrigation and Power Department.
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FINANCE DEPARTMENT

th
April, 2005

NOTIFICATION

No. FD (FR) 11-5/82 (P). The Competent Authority is pleased to authorize the
Superintending Engineer, D.G. Khan Rural Development Project, Dera Ghazi Khan, the
powers oI Technical Sanction provided he possesses requisite qualiIication and
experience. These powers will be equivalent to the powers already granted to the
Executive District OIIicer (Works & Services), District Government in the Punjab and
exercised, during the project period only, Ior Technical Sanction to the Sub-Projects
pertaining to the Community Development component and Tubewells.
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No. IT(FD)3-15/2004
FINANCE DEPARTMENT

th
April, 2005

Subject: ACCOUNTING PROCEDURE FOR PUN1AB GOVERNMENT
SERVANTS` HOUSING SUBSCRIPTION FUND.

Sir,

I am directed to reIer to the subject noted above and to enclose the procedure Ior
eIIecting deductions and accounting oI subscriptions Irom eligible members under the
Punjab Government Servant`s Housing Foundation Act, 2004. This procedure has been
Iormulated in consultation with the Accountant General, Punjab and vetted by the
Controller General oI Accounts.

2. In pursuance oI Sections 12 & 15 oI the Punjab Government Servants` Housing
Foundation Act, 2004, and pending Iormulation oI rules and regulations provided under
Sections 21 & 22 ibid, the Iollowing procedure is prescribed in the matter oI eIIecting
monthly deductions Irom the eligible members oI the Foundation Ior credit to the
Subscription Fund, its custody and maintenance oI accounts.

1. ELIGIBILITY TO CONTRIBUTE TO THE SUBSCRIPTION FUND
All Government Servants, deIined in Section 2(I) ibid, who subject to
eligibility, opt to become the members oI the Foundation, in the prescribed
manner, shall be required to compulsorily subscribe to the Subscription Fund
on monthly basis as per the rates oI monthly subscription applicable to the
diIIerent categories, detailed hereunder, Irom time to time in accordance with
the relevant scale/group. The rate oI subscription during a Iinancial year shall
be uniIorm.

(i) Group-I BS 1 to 4
(ii) Group-II BS 5 to 7
(iii) Group-III BS 8 to 12
(iv) Group-IV BS13 to 16
(v) Group-V BS17&18
(vi) Group-VI BS 19 to 22

2. PROVISION OF PARTICULARS/INFORMATION
The Punjab Government Servants Housing Foundation shall notiIy the
Accountant General Punjab/the respective District Accounts OIIicer, the
Tehsil/Town Accounts OIIicer or the Union Accountant, as the case may be.
about the particulars oI each member oI the Foundation required to
contribute to the Fund, while serving with the audit jurisdiction oI these
Iunctionaries respectively. Such members shall also be allotted a distinct
computerized account number Ior the purpose oI maintaining the account oI
each subscriber.

The inIormation/particulars as aIorementioned, in the prescribed proIorma
(Annex-I) shall be signed by a notiIied Iunctionary oI the Foundation, whose
specimen signatures shall be provided to the AG (Punjab)/DAOs/TAOs/ UAs
and each DDO oI the non-gazetted members oI the Foundation.

3. AT SOURCE MONTHLY DEDUCTIONS
The Accountant General (Punjab)/respective DAO/TAO/UA shall be
responsible Ior making at source deduction, at the prescribed rate, Irom the
monthly pay oI each eligible member government servant Ialling in the
audit/administrative jurisdictions oI these oIIices respectively in the
Iollowing manner:

(a) Deductions at Lahore
The Accountant General (Punjab) shall eIIect monthly deductions Irom
the salary oI each government servant (gazetted/non-gazetted)
contributing to the Fund, at the prescribed rates Ior each category,
through the computerized payroll, Iollowing the receipt oI necessary
computer change in his oIIice, in the prescribed manner. Such
deductions shall be made Irom all member government servants
serving with the aIIairs oI the province as well as the City District
Government, Lahore and drawing salaries Irom Account Nos. 1 and IV
respectively. At the end oI the month, the aggregate deductions made
shall be consolidated by the AG Punjab / DAO under the Iollowing
heads oI the Public Account:

Major Head 3000000 Deposit & Reserves (B- Not bearing interest)
Minor Head 3600000 Other Deposits
(New)
Detailed
Head
3601044 Contribution to Punjab Government Servants` Housing
Foundation Irom member civil servants oI the Punjab
Government serving the Provincial Government.
Government serving the District Governments.
Government serving the TMAs.
Government serving the Union Administrations.

However, such gazetted members who draw salary on pay bills shall be
required to attach a schedule with the monthly pay-bill in the
prescribed Iorm (Annex-II). The DDOs in such cases shall append the
schedule with the manual pay bills oI the non-gazetted establishment.
Deductions made Irom all such members shall be aggregated by the
AG/DAOs in the prescribed manner.

The deductions oI CDGL member civil servants (aggregated amount)
shall be credited to the Provincial Public Account (Account No. 1) by
issuing advice to the State Bank oI Pakistan, Lahore by the Accountant
General Punjab, per contra debit to the CDGL Fund (Account No. IV).

(b) Deductions at District Headquarters other than Lahore
(i) The District Accounts OIIicers, who operate computerized
payrolls, shall also make deductions on account oI monthly
contributions to the Subscription Fund Irom each subscriber
through the payrolls in Account No. I & IV as the case may be,
Ior employees oI the provincial or the district government. The
procedure as applicable in the AG (Punjab), as against Para-3(a)
above, shall mutatis-mutandis apply Ior such deductions in
districts.

(ii) The District Accounts OIIicers who authorize salaries on pay
bills shall eIIect deductions Irom each member government
servant Irom the respective monthly pay bills (gazetted/non-
gazetted), whereIore, each gazetted government servant/DDO
shall be required to attach a schedule (Annex-II) with such bills
containing the Iollowing particulars oI each employee.

(a) Name/Parentage
(b) Designation
(c) Individual Relationship Number on which all his/her
deductions will be accounted Ior.
(d) Rate oI monthly subscription as admissible to each
employee.

The deductions so eIIected and credited to the Detailed Head
3601045 shall be aggregated and transIer credited to the head oI
account mentioned in para 3(a) ante, i.e., Detailed Head
3601044, by issuing an advice by the District Accounts OIIicers
to the State Bank oI Pakistan/National Bank oI Pakistan, as the
case may be, per contra debit to the respective District Fund
(Account No. IV).

(c) Deductions from Member Government Servants working in
Tehsil/Town Municipal Administrations/Union Administrations.

Tehsil/Town Accounts OIIicer/Union Accountant shall ensure at
source deductions oI the Housing Subscription Fund Irom the salaries
in respect oI the civil servants oI the Punjab government serving the
TMAs/UAs, who opted to become members and details oI which shall
be provided to them by the Foundation.

The TAO (Finance) and the Union Accountant shall deposit the
amount oI such deductions in government treasury through Challan
Form 32-A, indicating the respective Detailed Head. AIter completing
the above steps, they shall be required to notiIy the AG
(Punjab)/Treasury OIIice, Lahore in case oI Town Municipal
Administrations/Union Administration in Lahore and the respective
DAO in case oI other TMAs/UAs (other than Lahore) oI all deductions
deposited as above, Ior a particular month, along with a copy oI the
receipted challan whereunder the aggregate deduction were so
deposited in the SBP/NBP. The Challan shall be supported by a
detailed statement showing the name oI each employee, along with his
designation, individual relationship number and rate oI monthly
deduction, beside indicating the month to which these deductions
relate. This inIormation should reach the concerned
DAO/AG(Punjab)/TO Lahore not later than the tenth oI the Iollowing
month to which such deductions relate.

(d) Deductions from Member Government Servants on Deputation/
Foreign Service

Member Government Servants oI the Provincial Government serving
on deputation and drawing their salaries Irom AG Punjab/DAO shall
be subject to at source deductions in the manner stated in Para-3(a)
ante.

The member civil servants who are serving outside the Province and
drawing their salaries Irom source other than General Revenue shall be
responsible to deposit their contribution in cash at the Government
Treasury through Challan Form 32-A, detailing therein the respective
Detailed Head and the month oI contribution, by the 5th oI the
Iollowing month.

4. MAINTENANCE OF ACCOUNTS
(i) The Accountant General Punjab in case oI Lahore, and the respective
District Accounts OIIicer in case oI other districts, shall be responsible
Ior maintenance oI accounts oI monthly deductions made Irom
member government servants serving at Lahore and other districts in
the respective Iormations discussed in paras 3(a) to 3(d) above.

(ii) The Accounts shall be maintained in the same manner mutatis-
mutandis as done Ior GP Fund deductions Irom civil servants.

(iii) For this purpose, a separate section/cell will be created in the oIIice oI
the AG Punjab/each DAO which, with the approval oI the Controller
General oI Accounts, shall be manned by oIIicer/oIIicial (data-entry
operator) deputed by the PGSHF. This dedicated oIIicer shall be
responsible Ior:

(a) Collecting aggregate Iigure oI monthly deductions made towards
the Subscription Fund Irom the Accounts Section oI the AG
Punjab/DAO respectively.

(b) Collecting details oI monthly deduction in case oI each
subscriber. Such details shall be obtained Irom the pay
rolls/computer slips/ schedules oI such deductions.

(c) The inIormation at (a) & (b) above shall be reconciled with each
other.

(d) All such details shall be booked in a Broad Sheet department-
wise.

(e) Collections made through local governments (TMAs & UAs)
shall also be aggregated and accounted Ior in the same manner;
as done Ior deduction made Ior Government servants serving in
districts/district governments.

(iv) The Housing Subscription Fund Accounting System shall contain, in
respect oI all Foundation members, the Iollowing inIormation:

(i) national identity number,
(ii) name & parentage oI members,
(iii) pay scale,
(iv) designation,
(v) date oI joining government service,
(vi) date oI birth,
(vii) department,
(viii) district oI posting, and
(ix) domicile

(v) The Housing Fund Accounting System shall contain, in respect oI
subscription payments, the Iollowing inIormation:

(i) the month-wise subscription payments,
(ii) date oI posting oI individual monthly subscriptions, and
(iii) total subscription payment oI each member.

5. RECONCILIATION OF DEDUCTIONS & THEIR REPORTING TO
AG PUN1AB BY THE DAO
In their monthly Cash Account sent to the AG, the DAOs shall include the
aggregate amount credited to Detailed Heads 3601044, 3601045, 3601046
and 3601047 Ior inclusion in Monthly Civil Accounts.

6. MANNER OF REPORTING RECEIPTS TO THE FOUNDATION BY
THE ACCOUNTANT GENERAL, PUN1AB.
The deduction oI subscription oI the Housing Subscription Fund at the
Treasury/DAO/AG level would be consolidated by the A.G Punjab in its
Monthly Civil Accounts and shall be reported to the Foundation by way oI an
extract called Housing Subscription Fund Receipt by not later than every 25
th

oI the succeeding month. This extract shall indicate lump-sum deductions,
DAO-Treasury-wise, as well as the amount deducted by the Accountant
General, Punjab at its own end.

7. RECOGNITION OF SUBSCRIPTION PAYMENTS
The subscription oI members shall be recognized as receipts aIter the money
has been deposited in the bank account by the Foundation subsequent to its
drawal Irom the AG.

When a subscription Irom a member is by way oI a Treasury Challan, the
recognition shall occur aIter its inclusion in the Cash Account oI the
AG/DAO.

8. REMITTANCE OF DEDUCTION/WITHDRAWAL
Withdrawal oI such amount by the Foundation shall be subject to
presentation oI a bill, along with sanction, accorded by the competent
authority. Sanction Ior drawal on bill will be signed by MD or GM (Finance)
oI the Foundation, as speciIied by the Govt. oI Punjab through a NotiIication
in the prescribed manner.

9. MONITORING & REPORTING PROCEDURE
There shall be located in each district (depending upon the number oI
members), a Data Entry Operator who would, on a monthly basis, generate
an independent set oI record relating to Housing Subscription Fund, as well
as other inIormation that would assist in updating members individual record.

Such record and inIormation shall be compiled Irom the schedules and other
connected records available with the DAO/Treasury/AG and shall be
reported at the end oI each month in the prescribed Iorm and manner to the
Foundation to enable its central compilation and subsequent reconciliation
with the AG Punjab at the beginning oI the succeeding month.

10. INTERNAL AUDIT.
Teams oI PGSHF will carry out internal audit and random physical
veriIication oI records at the district level periodically.

11. RECONCILIATION OF ACCOUNTS
By the 25th oI every month, the previous month`s consolidated Iigure oI
receipts, as reported by the Accountant General, Punjab (reIer para 6 above),
shall be reconciled with the accounts being centrally maintained by the
Foundation.

12. CHANGE IN SCALE-GROUP OF MEMBERS
As soon as a member moves Irom one scale-group to another, the deduction
applicable to such higher category shall be made by the Accountant General,
Punjab/DAO/TMA as the case may be.

The AG/DAO shall intimate such a change in member`s scale-group to the
Housing Fund section, located in the Foundation`s Head OIIice at Lahore, on
a prescribed proIorma (Annex-III).

The AG/DAO shall ensure that the Pay Slip issued to a gazetted employee
upon change in his/her scale-group indicates change in the rate oI Housing
Subscription Fund deduction, iI any, according to current monthly Housing
Fund subscription rates. The delegated oIIicer in the Housing Fund section
shall post the changes in scale-group oI members in the Housing Fund
Accounting System, upon receipt Irom the competent authority.

13. TRANSFER/DEPUTATION OF MEMBERS TO OTHER
DISTRICTS/ENTITIES
In case oI transIer oI a member Irom one department to another, within or to
a diIIerent district, Iull monthly subscription shall be deducted Irom the pay
bill by the Accounts OIIicer oI the department where he has been transIerred.

In case oI promotion oI a member Irom one scale-group to a higher scale-
group, Iull monthly subscription shall be deducted according to that higher
scale-group.

14. SUBSCRIPTION PAYMENTS DURING LEAVE
Full monthly subscription Irom a member while on earned leave with leave
salary shall be deducted.

Subscription Irom a member on extraordinary leave shall not be compulsory.
However, a member on extraordinary leave may choose to contribute
towards his/her Housing Subscription Fund, in which case the contribution
shall be by way oI demand draIt to the Foundation.

15. EXCEPTION HANDLING

In case oI an error in respect oI member in the Housing Fund Deduction
Schedule, the Foundation may keep the money in a separate head known as
the Exception Head. Such money would be transacted to the account oI the
individual aIter Iurther veriIication.
----------


ProIorma available in old book





No. FD (FR) II-5/82
FINANCE DEPARTMENT

Dated Lahore, the 2
nd
May, 2005.

Subject: DECLARATION OF COUNCIL OFFICER, ZILA COUNCIL
SECRETARIAT, BAHAWALPUR AS CATEGORY-III OFFICER
UNDER THE DELEGATION OF FINANCIAL POWERS RULES,
1990.

Please reIer to your letter No. EDO(F&P)/BWP/2-37/III/03-04, dated 22
nd
March,
2005 on the subject as noted above.

2. The matter has been examined in the Finance Department. The Finance
Department, aIter the approval oI the Competent Authority, has speciIied vide No. even,
dated 30.7.2001 and 11-08-2001, the Iunctionaries oI the District Governments in the
Punjab under First Schedule to Delegation oI Financial Powers Rules 1990 whereby the
heads oI the oIIices have been authorized to exercise the Iinancial Powers oI their
corresponding category oI oIIicers, as spelled out in Part-I oI the Second Schedule to the
Rules ibid. The aIoresaid authorization has been assigned keeping in view their
respective designated oIIices conceived in Section 27 oI Punjab Local Government
Ordinance, 2001. Since, the head oI a District oIIice has been categorized as OIIicer in
Category-III, a Council OIIicer being subordinate oIIicer oI his District OIIicer, could not
be elevated, with regard to Iinancial powers, at par with his District OIIicer.

3. Accordingly, Finance Department regrets to concede to the request oI the District
Government, Bahawalpur.
----------

No. IT(FD)3-2/2003
FINANCE DEPARTMENT

Dated Lahore, the 6
th
May, 2005.

Subject: RECONCILIATION OF DEVELOPMENT EXPENDITURE UNDER
GRANT NO.36-TAMEER-E-PUN1AB PROGRAMME FOR THE
YEAR 2004-2005.

Please reIer to the subject noted above.

2. The Director General, Local Government Punjab, Lahore has intimated that the
reconciliation oI development expenditures under the Tameer-e-Punjab Programme,
incurred through the joint Personal Ledger Accounts oI DCOs & EDO (F&P) is not being
carried out on monthly basis.

3. The Fiscal Monitoring Committee in its meeting held on 27 & 29th April 2005 also
took note oI this shortcoming, and directed to take up the matter with the relevant
quarters Ior invariably undertaking the exercise.

4. It is, thereIore, requested that the development expenditure Iigures under Grant
No.36 Tameer-e-Punjab Programme, aIter due reconciliation with the District Accounts
OIIicer/Treasury OIIicer, Lahore, in the prescribed manner, may be Iurnished to the
Directorate General, LG&RD by the 15th oI Iollowing month to which the accounts
relate. Copies oI such statements may also be provided to the FD (LG&F Wing), and the
LG&RD department.
----------

No. FD (FR) VI-9/2000(P)
FINANCE DEPARTMENT

th
May, 2005

Subject: FINANCIAL PROCEDURE FOR INCURRENCE OF
EXPENDITURES IN CONNECTION WITH THE VISITS/PUBLIC
MEETINGS OF VVIPs

Sir,

I am directed to reIer to the subject as noted above, and to state that the
expenditures on visits oI the President oI Pakistan, Prime Minister oI Pakistan, the
Governor and the ChieI Minister oI the Province are held to be a valid charge as per the
Standing Operating Procedure regarding visits oI VVIPs circulated by the S&GAD vide
letter No. SO-CAB-1/12-3/2004 dated 08.07.2004.

2. Accordingly, in pursuance oI Section 128 (i) oI Punjab Local Government
Ordinance, 2001 (as amended), it is directed that the District Governments in the Punjab,
shall observe the Iollowing Iinancial procedure in the matter oI incurrence oI
expenditures on the subject:

(i) The expenditures shall be budgeted and approved by the Zila Council in term
oI Section 109 (i) oI the Ordinance ibid;

(ii) The expenditures shall be a voted expenditure (current budget);

(iii) The expenditures shall only be incurred Ior the visits/public meetings oI the
VVIPs on objects; viz hiring oI tentage, Iurniture, transportation, lighting,
publicity and reIreshments;

(iv) The Iinancial sanctions Ior the expenditures shall be given by the competent
authority in the prescribed manner;

(v) The DCO shall exercise Iull powers in the matter oI advance drawals against
amounts as required Ior immediate disbursement, to the extent oI objects
stated at Sr. No. (iii) above, such advances shall be drawn in relaxation oI
Rule 2.10(b)(5) oI PFR Vol-1;

(vi) The expenditures shall be incurred in most economical manner as prescribed
in Annex-D to Rule 15.2 oI PFR Vol-1;

(vii) The expenditures shall be vetted by a Co-ordination Committee headed by
EDO(R) and EDO (F&P) and EDO(W&S) as its members;

(viii) The concerned DDO shall be responsible Ior rendering vouched accounts, in
the prescribed manner, in respect oI the entire expenditures, including the
expenditures against the amounts drawn in advance, duly certiIied by the Co-
ordination Committee, Ior the purpose oI Iinal adjustment by the Accountant
General, Punjab/DAOs concerned and;

(ix) The DDO shall also maintain complete record, as prescribed, and retain the
vouched accounts Ior audit scrutiny;

3. Tile District Governments are requested to take action accordingly.
----------

No. FD (FR) 11-2/89.
FINANCE DEPARTMENT

th
May, 2005

Subject: STREAMLINING OF PROCEDURES TO IMPROVE THE PACE OF
EXECUTION OF DEVELOPMENT SCHEMES - POWERS TO RE-
APPROPRIATE APPROVED DEVELOPMENT SCHEMES WITHIN
THE SECTOR.

Sir,

I am directed to reIer to this Department`s letter No. even, dated 30.6.2004, on the
subject as cited above.

2. I am to state that it has been observed that the connotation 'Approved Schemes
occurring in Para 1 (a) oI the said letter has been misconstrued as to its exact purview.

3. I am accordingly to clariIy that 'approved scheme shall only include
development schemes reIlected in the ADP/development budget as per the Schedule oI
Authorized Expenditures`.

4. All Administrative Departments/District Governments may also apply the policy in
question, to the said extent only.
----------

FINANCE DEPARTMENT

th
May, 2005

NOTIFICATION

No. (FD)11-5/82. In exercise oI the powers conIerred upon him under Article 119 oI the
Constitution oI Islamic Republic oI Pakistan, 1973, the Governor oI the Punjab is pleased
to direct that in Part-I OFFICERS IN CATEGORY-I oI the First Schedule oI the
Delegation oI Financial Powers Rules, 1990 the Iollowing shall be added, with immediate
eIIect:

Amendment:
69. The Principal, Postgraduate College oI Nursing, Lahore attached with
Government oI the Punjab, Health Department.
----------

No. Exp.(LG)1-9/2001(TMA)
FINANCE DEPARTMENT

Dated Lahore, the 1
st
June, 2005

ORDER

Sanction is hereby accorded to release an amount oI Rs.60.495 million (Rupees
Sixty million & Four Hundred and Ninety Five Thousand only) and Rs.247.683 million
(Rupees Two Hundred Forty Seven million & Six Hundred Eighty Three Thousand only)
& 181.056 million (Rupees One hundred Eighty One million and FiIty Six thousand
only) as Current Budget, Grant in Lieu oI Octroi & Development grant respectively to the
Town/ Tehsil Municipal Administrations/ Cantonment Boards to the extent oI the
amounts given against each TMA and Cantonment Boards in the enclosed statement.
These Iunds constitute the releases Ior the month oI June, 2005, on the prorata basis in
accordance with the Interim Award II oI the Provincial Finance Commission. The
Current Iunds include the salary/non-salary Iunds Ior the employees oI PHE, H&PP and
LG&RD devolved to TMAs.

2. The release oI above mentioned Iunds and releases Ior the Iuture months shall be
adjusted according to the Iinal Award oI the Provincial Finance Commission and the
actual revenue receipts oI the Provincial Government.

3. The amount as indicated against individual TMAs/Cantonment Boards shall be
credited in the bank accounts oI the TMA/Cantonment Boards by the Accountant General
Punjab/District Accounts OIIicers by issuing an authority to this eIIect to the State Bank/
National Bank oI Pakistan as the case maybe.

4. The above-mentioned aggregate amounts shall be debitable to Provincial Account
No.I (Non-Iood) during the Iinancial year 2004-05 to the Iollowing heads oI account:
Amount Head of Account
Rs.60.495 million Grant No. 31 Miscellaneous
Rs.247.683 million 6-70000 Debt Servicing,
Investible Funds and Grants
6-74000 Grants and Subventions
Total Rs.308.178 million 6-74600 Grants to Tehsil/Town Admn.
6-74601 Share Irom Provincial Allocable amount.
60000 TransIer Payments
64000 Grants
64600 Tehsil/Town Administration
64601 Special Grants Irom Prov. Allocable
Amount

Rs.181.056 million Grant No.36 Development
8-70000 Debt Servicing, Investible Funds and Grants
8-74000 Grants and Subventions
8-74600 Grants to Tonsil/Town Admn.
8-74601 Share Irom Provincial Allocable amount.
60000 TransIer Payments
64000 Grants
64600 Tehsil/ town Administration
64601 Special Grants Irom Prov. Allocable
Amount.
----------

PROPOSED RESOURCE TRANSFERS TO TMAs DURING 2004-05

(#s. In million)

Sr. #
Name of
District / TMA
Release 1une, 2005
Current
Budget
Dev. Grant
Grant in Lieu
of Octroi
Total
1 2 3 4 5 6
1401 Rawalpindi 3.505 7,850 20.335 31.690
Rawalpindi 1.619 4.501 10.533 16.653
Cantonment Board
Rawalpindi
- - 7.022 7.022
Gujar Khan 0.620 1.152 0.748 2.520
Kahuta 0.387 0.728 0.511 1.626
Murree 0.392 0.413 0.565 1.370
Kotli Sattian 0.243 0.188 0.423 0.854
Taxila 0.244 0.868 0.533 1.645
1402 Attock 1.959 2.638 2.069 6.666
Attock 0.581 0.130 -- 0.711
Sr. #
Name of
District / TMA
Release 1une, 2005
Current
Budget
Dev. Grant
Grant in Lieu
of Octroi
Total
Hassanabdal 0.309 0.441 0.651 1.401
Fateh Jang 0.472 0.693 0.473 1.638
Jand 0.273 0.736 0.478 1.487
Pindi Gheb 0.324 0.638 0.467 1.429
1403 1helum 1.611 2.447 2.719 6.777
Jhelum 0.761 1.348 1.267 3.376
Find Dadan Khan 0.257 0.689 1.000 1.946
Sohawa 0.593 0.410 0.452 1.455
1404 Chakwal 1.585 3.278 2.315 7.178
Chakwal 0.858 1.817 1.000 3.675
Talagang 0.369 1.142 0.883 2.394
Choa Saidan Shah 0.358 0.319 0.432 1.109
1405 Sargodha 2.785 6.628 10.13 19.549
Sargodha 1.142 2.683 5.914 9.739
Cantonment Boards
Sargodha
-- -- 0.884 0.884
Sillanwali 0.426 0.633 0.570 1.629
Bhalwal 0.460 2.042 1.559 4.061
Shahpur 0.317 0.682 0.636 1.635
Sahiwal 0.440 0.588 0.573 1.601
1406 Mianwali 2.985 3.302 2.594 8.881
Mianwali 1.601 1.681 1.001 4.283
Isa Khel 1.161 0.793 0.738 2.692
Piplan 0.223 0.828 0.855 1.906
1407 Bhakkar 1.644 3.552 2.663 7.859
Bhakkar 0.517 1.430 0.885 2.832
Derya Khan 0.681 0.790 0.514 1.985
Mankera 0.210 0.575 0.457 1.242
Kallur Kot 0.236 0.757 0.807 1.800
1408 Khushab 1.312 2.951 2.083 6.346
Khushab 1.087 2.380 1.535 5.002
Noorpur 0.225 0.571 0.548 1.344
1409 Gujranwala 1.732 7.512 19.129 28.37
Gujranwala City. 0.508 2.584 14.889 17.98
Gujranwala Sadar 0.488 1.601 0.962 3.051
Sr. #
Name of
District / TMA
Release 1une, 2005
Current
Budget
Dev. Grant
Grant in Lieu
of Octroi
Total
Kamoke 0.253 0.918 1.202 2.373
Wazirabad 0.277 1.451 1.363 3.091
Nowshera Virkan 0.206 0.958 0.713 1.877
1410 Hafizabad 0.679 2.665 1.920 5.264
HaIizabad 0.466 1.550 1.185 3.201
Pindi Bhattian 0.213 1.115 0.735 2.063
1411 Gujrat 1.240 5.463 5.624 12.327
Gujrat 0.659 2.921 3.615 7.195
Kharian 0.338 2.070 1.437 3.845
Sarai Alamgir 0.243 0.472 0.572 1.287
1412 Sialkot 1.302 6.435 11.297 19.034
Sialko 0.820 2.976 8.301 12.097
Cantonment Board Sialkot - - 0.530 0.530
Daska 0.239 2.021 1.493 3.753
Pasrur 0.243 1.438 0.973 2.654
1413 Narowal 0.789 4.213 1.776 6.778
Narowal 0.536 2.090 1.000 3.626
Shakargarh 0.253 2.123 0.776 3.152
1414 M.B. Din 0.948 3.596 2.243 6.787
Mandi Bahauddin 0.432 1.436 1.132 3.000
Phalia 0.283 1.247 0.542 2.072
Malakwal 0.233 0.913 0.569 1.715
1415 Lahore 1.003 7.420 0.694 9.117
City District Lhr. - - - -
Ravi Town - 1.500 - 1.500
Data Gunj Bakhsh 0.615 1.628 - 2.243
ShalimarTown 0.114 1.123 - 1.237
Aziz Bhatti Town 0.020 0.638 - 0.658
IqbalTown 0.062 1.298 - 1.360
Nishtar Town 0.192 1.233 0.694 2.119
1416 Sheikhupura 1.730 7.907 14.047 23.684
Sheikhupura 0.824 2.496 7.902 11.222
SaIdarabad 0.298 1.413 1.338 3.049
Ferozwala 0.248 2.343 3.938 6.529
Nankana Sahib. 0.360 1.655 0.869 2.884
Sr. #
Name of
District / TMA
Release 1une, 2005
Current
Budget
Dev. Grant
Grant in Lieu
of Octroi
Total
1417 Kasur 1.043 5.762 5.312 12.117
Kasur. 0.442 2.815 3.509 6.766
Chunian. 0.286 1.422 0.781 2.489
Pattoki 0.315 1.525 1.022 2.862
1418 Okara 1.391 5.826 4.425 11.642
Okara. 0.899 2.253 2.400 5.552
Renala Khurd. 0.236 0.876 0.639 1.751
Depalpur 0.256 2.697 1.386 4.339
1419 Multan 2.544 6.643 20.846 30.033
Multan City 1.095 3.196 16.936 21.227
Cantonment Board Multan - - 1.675 1.675
Multan Sadar 0.780 1.771 0.704 3.255
Shuja Abad. 0.352 0.913 0.848 2.113
Jalalpur Pirwala 0.317 0.763 0.683 1.763
1420 Lodhran 1.487 3.442 2.329 7.258
Lodhran 0.725 1.389 0.811 2.925
Dunyapur 0.402 0.995 0.520 1.917
Karor Pacca. 0.360 1.058 0.998 2.416
1421 Vehari 1.485 5.299 4.912 11.696
Vehari 0.815 1.659 2.250 4.724
Mailsi 0.316 1.789 1.000 3.105
Burewala 0.354 1.851 1.662 3.867
1422 Sahiwal 1.533 4.474 4.606 10.613
Sahiwal 1.194 2.577 3.533 7.304
Chichawatni 0.339 1.897 1.073 3.309
1423 Pakpattan 1.065 4.102 2.155 7.322
Pakpattan 0.707 2.174 1.244 4.125
AriIwala 0.358 1.928 0.911 3.197
1424 Khanewal 1.783 5.335 4.152 11.270
Khanewal 0.759 1.403 1.714 3.87
Jahanian 0.346 0.646 0.518 1.51
Mian Channu 0.363 1.598 1.000 2.96
Kabirwala 0.315 1.688 0.920 2.923
1425 Faisalabad 3.148 10.850 53.120 67.111
Faisalabad City. 0.566 4.281 47.387 52.234
Sr. #
Name of
District / TMA
Release 1une, 2005
Current
Budget
Dev. Grant
Grant in Lieu
of Octroi
Total
Faisalabad Sadar 0.939 1.863 0.739 3.541
Chakjhumra 0.333 0.508 0.510 1.351
Jaranwala 0.455 2,098 2.767 5.320
Samundari 0.399 1.027 0.717 2.143
Tandalianwala 0.456 1.073 1.000 2.529
1426 T.T.Singh 1.616 4.665 3.039 9.320
T.T.Singh 0.904 1.776 1.000 3.680
Gojra 0.327 1.421 1.000 2.748
Kamalia 0.385 1.468 1.039 2.892
1427 1hang 1.754 7,743 6.045 15.542
Jhang 1.016 3.287 3.715 8.018
Chiniot 0.349 2.633 1.341 4.323
Shorkot 0.389 1.823 0.989 3.201
1428 D.G. Khan 2.211 4.432 3.696 10.339
D.G.Khan 1.320 3.099 2.541 6.960
Taunsa 0.370 0.994 0.715 2.079
De-excluded area 0.521 0.339 0.440 1.300
1429 Rajanpur 1.413 3.203 2.624 7.240
Rajanpur 0.745 1.174 1.211 3.130
Jampur 0.349 1.415 0.942 2.706
Rohjan 0.319 0.614 0.471 1.404
1430 Muzaffargarh 1.980 8.335 3.584 13.899
MuzaIIargarh 0.933 3.132 1.146 5.211
Alipur 0.348 1.256 0.616 2.220
Jatoi 0.338 1.395 0.645 2.378
Kot Addu 0.361 2.552 1.177 4.090
1431 Layyah 1.576 3.899 2.462 7.937
Layyah 0.883 2.064 1.244 4.191
Karor Lal Easan 0.329 1.278 0.766 2.373
Chaubara 0.364 0.557 0.452 1.373
1432 Bahawalpur 2.863 5.693 6.911 15.467
Bahawalpur 1.542 1.886 3.032 6.460
Cantonment Board
Bahawalpur
- - 0.133 0.133
Ahmadpur East. 0.318 1.686 1.532 3.536
Sr. #
Name of
District / TMA
Release 1une, 2005
Current
Budget
Dev. Grant
Grant in Lieu
of Octroi
Total
Hasilpur 0.301 0.737 1.155 2.193
Yazman 0.342 0.952 0.545 1.839
KhairpurTamewali 0.360 0.432 0.514 1.306
1433 Bahawalnagar 2.958 5.638 5.363 13.959
Bahawalnagar 1.105 1.487 1.000 3.592
Fortabbas 0.363 0.804 0.619 1.786
Chishtian 0.661 1.353 1.570 3.584
Haroonabad 0.409 1.032 1.545 2.986
Minchinabad 0.420 0.962 0.629 2.011
1434 R.Y.Khan 1.836 7.858 10.458 20.152
Rahim Yar Khan 0.713 2.480 5.243 8.436
Sadiqabad 0.337 1.943 2.427 4.707
Liaqatpur 0.390 1.727 0.856 2.973
Khanpur 0.396 1.708 1.932 4.036
GRAND TOTAL 60.495 181.056 247.683 489.234

* The release to the cantonment boards is on Provisional basis.
** Rs.0.136 million grant in lieu oI octroi Ior Co-unit Jhawarian deducted Irom TMA,
Sahiwal and placed at the disposal oI TMA, Shahpur, District Sargodha.
*** Rs.2.500 million has been deducted against excess release oI Rs.5.000 million to
TMA, Attock Ior water supply and drainage scheme Attock.
----------
No. IT(FD)3-1/95-Vol-III
FINANCE DEPARTMENT

Dated Lahore, the 2
nd
June, 2005

Subject: OBSERVANCE OF FINANCIAL DISCIPLINE IN THE
PROVINCIAL/DISTRICT GOVERNMENTS. SPECIALLY DURING
THE MONTH OF 1UNE.

Kindly reIer to the standing instructions contained in this department`s circular
letter No. IT(FD)3-1/95-Vol-II, dated 8
th
May, 2001 on the above cited subject,
prescribing various stipulations (cut-oII dates) in the matter oI (i) utilization oI budget (ii)
contracts (iii) submission oI claims to the Accountant General, Punjab/District Accounts
OIIicer/Treasury OIIicers and (iv) payments through government cheques etc.

2. In order to Iacilitate maximum discharge oI liabilities by government
departments/district governments Ior the Iinancial year ending 30th June 2005, it has
been decided to relax and extend the stipulations (dates only),as prescribed in the circular
letter oI 8th May, 2001, up to 28
th
1une 2005.

3. The policy instructions/relaxations, as above, shall only be applicable in the context
oI Provincial Account No. 1(Non-Food), Account No-II (Food), and District Fund,
Account No. IV, unless otherwise restricted by the respective district government.

4. However, the provision regarding observance oI normal oIIice/banking hours as
contained in para 2(e) oI the circular letter under reIerence shall remain enIorced, as
beIore, Ior provincial and district government`s payments only.

5. These relaxations shall only apply to the Iinancial year 2004-2005.

6. These instructions shall NOT apply to Federal Government payments.
----------
No. SO(DG)1-12/2005
FINANCE DEPARTMENT

Dated Lahore, the June 03, 2005

Subject: CUSTODY AND MAINTENANCE OF PENSION FUND BY
DISTRICT GOVERNMENTS.

With the discontinuation oI institutional investments oI governmental/ local Iunds
in National Savings Centers, and Post OIIices, a question has arisen as to the custody and
maintenance oI Pension Funds by the District governments.

2. It has been accordingly decided, that since the Pension Fund oI the employees oI
the erstwhile local councils working in the District Governments is a ~Local Fund it is,
thereIore, prescribed under Section 108 oI the PLGO, 2001, read with Rule 13.2 oI the
PFR Vol-I, that such accounts shall be maintained in the National Bank oI Pakistan and
the Bank oI Punjab, in appropriate proportions.
----------
No. IT(FD)3-7/2001 Vol-I
FINANCE DEPARTMENT

Dated Lahore, the 8
th
June, 2005

Subject: SHARP DECLINE IN THE GROUP INSURANCE PREMIUM OF
PUN1AB GOVERNMENT EMPLOYEES, WORKING IN
TEHSIL/TOWN MUNICIPAL ADMINISTRATIONS.

Kindly reIer to the subject noted above.

2. The State LiIe Insurance Corporation oI Pakistan (SLIC) has expressed concerns
about the shortIalls in the collection oI monthly group insurance premium in respect oI
the Punjab Government employees, speciIically aIter the implementation oI the
Devolution Plan. This decline is more pronounced in case oI civil servants working in
Tehsil/Town Municipal Administration, although such trend is also discernable in case oI
employees working in the district/provincial governments.

3. In this regard, the SLIC has provided relevant statistics showing visible decline in
the collection oI monthly group insurance premium. Besides, it has undertaken a survey
oI districts oI Okara and Gujranwala which points out to serious shortcomings in the
matter oI eIIecting such deductions by the TMAs.

4. In most cases such deductions were either not being made altogether and deposited
on monthly basis in the prescribed manner, or were made at lesser/varied rates and
periodically deposited lump-sum in wrong heads oI account. Besides, relevant record was
not maintained to Iacilitate veriIication oI such deductions. Also the relevant authorities
in the TMAs were Iound generally unaware oI their mandatory Iunctions regarding these
deductions. Even the relevant staII oI the Local Fund Audit Department in TMAs showed
indiIIerence to the policy on the subject.

5. The above position has been viewed very seriously, given the Iact that the FD had
issued comprehensive instructions in the matter vide No. IT(FD)3-4/2002.Vol-IV dated
17.3.2003. These were also reiterated vide No. IT(FD)3-4/2002.Vol-VII dated
10.06.2004 and No. IT(FD)3-4/2002.Vol-VIII (KC) dated 22.12.2004 ThereIore, there
were no justiIications to disregard the policy, in question, which is otherwise detrimental
to the cause oI the civil servants. In case the SUC were not in a position to meet their
insurance claims etc., on the grounds oI non-realization oI insurance premium.

6. It, is thereIore, reiterated that the policy contained in this department`s letter dated
17.3.2003 is implemented in letter and spirit, and that the monthly insurance premium in
respect oI civil servants working in TMAs is regularly deducted at the prescribed rates
and deposited in the government account in the prescribed manner. Any disregard to this
eIIect will be attributed as a personal Iailing oI the concerned, TMO/T.O (Finance) and
Resident Audit staII.

7. As regard previous shortIalls/non-deductions/arrears, it is advised that each TMA
may overhaul the past record, in case oI each employee (civil servants), and deposit the
balance amount, separately listing out period/deductions Ior each employee in
government accounts in the same manner as prescribed Ior the monthly deductions. This
action may be completed by 30th June 2005.
----------
No. IT(FD)3-4/2002-Vol-VI
FINANCE DEPARTMENT

Dated Lahore, the 9
th
June, 2005

Subject: LOCAL GOVERNMENT FINANCE SYSTEM-EFFECTIVE 1ULY 01,
2002 - REFUND OF SECURITIES OF CONTRACTOR FOR THE
PRE-DEVOLUTION PERIOD.

Kindly reIer to the subject noted above

2. The policy guidelines contained in this department`s letter oI even No., dated
27.8.2002, inter-alia prescribe the procedure Ior the reIund oI security oI contractors,
pertaining to the pre-devolution period, by the successor oIIices i.e. District OIIicer
(Roads & Buildings) in the District Governments and Tehsil OIIicer (I&S) in the
Tehsil/Town Municipal Administrations. This policy did not apply to the refund of
security of contractors relating to the Housing & Physical Planning Department,
because its offices at the district levels ceased to exist under the Devolution Plan,
and did not have any functional officer to act as Drawing and Disbursing Officer.

3. Now, with the revival oI the Iunctionality oI the H&PP Department, through
PHATA, as its successor-in-interest, the question regarding the reIund oI security oI
contractors by the department, held in the Public Account oI the Province, pertaining to
the pre-devolution period, has been considered by the Finance Department, and the
Iollowing procedure is prescribed Ior the reIund oI securities:-

(a) The PHATA, as successor-in-interest to the H&PP department, shall
arrange to collect authentic Iigures regarding unpaid security oI contractors
Irom the schedule oI deposits, maintained at district level by each defunct
works division, and aIter its due compilation month-wise, send it to the
Director General (Accounts) Works, Lahore by a duly authorized oIIicer Ior
veriIication oI corresponding credits available in the respective broad-sheet
oI deposits maintained by the Directorate on the basis oI monthly accounts
submitted by the deIunct divisions vide paras 322 (ii) and 393 oI the Audit
Manual.

(b) AIter veriIication and certiIication oI such deposits by the DG (Accounts)
Works, the PHATA shall send a district-wise consolidated case Ior each
deIunct division to the Finance Department, under the authority oI Director
General PHATA Ior the release oI aggregate Iunds to the Personal Ledger
Account oI DG, PHATA Ior the discharge oI the liability oI contractors by
the respective oIIices oI PHATA in the prescribed manner.

(c) Each case oI reIund processed and discharged, as above, shall be periodically
communicated by PHATA to the oIIice oI the DG (Accounts), Works Ior
appropriate discharge oI the deposits against the original credits standing in
its books.

(d) The amount provided in the PLA of DG., PHATA for the refund of
security of contractors shall not be transferable, or utilized for any other
purpose. All payments against refund of securities shall be maintained
separately, within the PLA.
-----------

No. IT(FD)3-4/2002-Vol-VII
FINANCE DEPARTMENT

Dated Lahore, the June 11, 2005.

Subject: GUIDE LINES FOR BUDGET PREPARATION BY LOCAL
GOVERNMENTS IN THE FINANCIAL YEAR 2005-06.

Since the incumbent Local Governments are about to complete their terms oI oIIice
as prescribed in Section 159 oI the Punjab Local Government Ordinance, 2001, certain
steps required oI them with regard to their Financial and Budgetary responsibilities are
iterated hereunder Ior guidance and implementation:

(A) Restriction on Expenditure
All Local Governments shall strictly observe the provisions oI Section
109(6) oI the PLGO, 2001 and may not commit or incur expenditures beyond
the prescribed a percentage, per mensem.

(B) Budget Making for the financial year 2005-06.

(i) Under Section 111(6) ibid, all local governments are required to
prepare the next budget, beIore the commencement oI the new
Iinancial year, in the prescribed manner. However, the Government
may impose any restrictions/prescribe change in the scope oI activity
under Section 128 ibid.

(ii) The out going local governments, may meanwhile, strictly observe the
Iollowing guidelines in the matter oI budget making Ior the next
Iinancial year 2005-06.

(a) All directions and schedules contained in the Punjab Local
Government Budget Rules, 2003 may be strictly Iollowed.

(b) Appropriations oI salaries and allowances shall be a Iirst charge
on the budget.

(c) Appropriation Ior maintenance and repair may strictly be made
in accordance with the approved yardsticks.

(d) Re-appropriations oI Iunds allocated under M&R shall not be
done.

(e) Non-salary allocations in the current budget should NOT be
less than 20-25 oI the total current budget.

(I) While making budgetary allocations in the new budget, speciIic
yardsticks, where prescribed e.g., in the Health and Education
Sectors may be respectively Iollowed.

(g) Each district government may ensure that the monitoring
mechanism Ior expenditures under the Annual Development
Programme, based on the model oI DAO, Faisalabad must be
implemented. Necessary training/ guidance has already been
provided to all DAOs, and other concerned Iunctionaries oI the
district governments.

(h) The percentage Iunds allocated Ior spending through CCBs,
under Section 109(5), read with Section 119 ibid shall not be
budgeted or re-appropriated Ior utilization through any other
mode.

(i) The guidelines Iormulated by the Planning and Development
department Ior the preparation oI Annual Budget Programme by
the local governments may strictly be kept in view during the
budget making process.

(j) The Iunds provided as conditional / speciIic purposes grants may
be budgeted separately to meet the purpose oI the grant.

(C) Other Aspects
(a) As already advised vide letter No. IT(FD)3-4/2002.Vol-VII dated
8.10.2004. Open ended grants-in-aid may not be given to other local
governments in the local area.

(b) TransIer oI resource to other local governments in the local area in
terms oI the policy contained in FD`s letter No. IT(FD)3-4/2002.Vol-
VVII dated 22.2.2003 may not be done by the outgoing local
governments in the month oI June 2005.

(c) The Iunds provided to the District Governments under the Tameer-e-
Punjab Programme may be duly accounted Ior and reconciled up to
30th June 2005, in the prescribed manner by the outgoing local
governments as per its responsibility.
----------

No. IT(FD)3-2/2003
FINANCE DEPARTMENT

th
June, 2005

Subject: TAMEER-E-PUN1AB PROGRAMME 2003-FINANCIAL
PROCEDURE

In partial modiIication oI the instructions contained in this department`s letter oI
even number dated 7.4.2003, the newly established Engineering Wing oI LG&RD
Department in each district, and the Divisional OIIices oI PHED (provincial set up at
district level) are declared as the executing agencies Ior the Tameer-e-Punjab
Programme (TPP). These shall be in addition to the existing executing agencies
mentioned in para 3 (vi) oI the letter under reIerence. The Iinancial procedure etc. as
already prescribed, shall also apply to the new executing agencies mutatis-mutandis.
----------

No. IT (FD) 3-4/2002-Vol-VII
FINANCE DEPARTMENT


Subject: GUIDELINES FOR BUDGET PREPARATION BY LOCAL
GOVERNMENTS FOR THE FINANCIAL YEAR 2005-06.

Kindly reIer to this department`s letter oI even number dated June 11, 2005 on the
above noted subject.

2. In continuation thereoI, the Iollowing guidelines are Iurther prescribed Ior
observance by the local governments:-

(i) The guidelines oI June 11, 2005 shall be applicable to the new local
governments, assuming oIIice aIter elections.

(ii) Meanwhile, the outgoing local governments may strictly observe the
provisions oI Section 109 (6) oI the PLGO 2001 as already reiterated by
the LG&RD and the Finance Departments.

(iii) The existing/out-going local governments are directed under Section 128 ibid
that they may not prepare the annual budgets Ior the Iinancial year 2005-06,
or auction their incomes till the assumption oI oIIice by the new local
governments. They shall however incur expenditure, w.e.I. 1.7.2005 on pro-
rata basis and make departmental collection oI levies.

(iv) Budgets Ior the Iinancial year 2005-06, where already prepared/approved by
a local government shall stand invalidated, and may not be executed during
the Iinancial year 2005-06.

(v) The F.D., shall meanwhile, provide monthly assignments oI Iiscal transIers
on 1.7.2005 on existing basis, plus an increase oI ten percent.

(vi) The local governments may also not incur any expenditure Irom their
development budgets during the next Iinancial year, except that Ior on-going
schemes, provided these have been approved and Iunded as on-going
schemes w.e.I. 1st June 2005.
-----------

No. IT(FD)3-4/2002-VOL-VIII
FINANCE DEPARTMENT



Kindly reIer to this department`s letters oI even number dated June 11th, and 24th
on the above noted subject.

2. In continuation thereoI, it is clariIied that where the incumbent local governments
have already completed the auction oI leases Ior the Iinancial year 2005-06, and where
the lease money is more than 10 of the auction price of the financial year 2004-05,
such leases shall be held as valid, and may be collected by the respective local
government during the Iinancial year 2005-06.
-----------
No. IT (FD) 3-4/2002-Vol-VIII
FINANCE DEPARTMENT



In continuation oI this department`s letter oI even No. dated June 25, 2005 on the
above noted subject, it is Iurther clariIied that in cases where the increase is less than
10, but the auction price is in excess oI the benchmark oI 2004-05 and the leases have
been Iinalized in accordance with the rules, such leases shall also be held as valid.

2. In such cases, where there is a decrease in auction price compared to the
benchmark oI 2004-05, such cases shall be reIerred to the LG&RD department with Iull
justiIication, Ior decision as per rules.
------------
No. FD(TMA)1-100/2005
FINANCE DEPARTMENT

Dated the Lahore, the 4
th
July, 2005
ORDER

Sanction is hereby accorded to release an amount oI Rs.538.407 million (Rupees
Five Hundred and Thirty Eight million & Four Hundred and Seven Thousand only) as
Current Budget, Grant in Lieu oI Octroi & Development grant to the Town/ Tehsil
Municipal Administrations/ Cantonment Boards to the extent oI the amounts given
against each TMA and Cantonment Boards in the enclosed statement. These Iunds
constitute the releases Ior the month oI July, 2005, on the prorata basis in accordance
with the Interim Award II oI the Provincial Finance Commission. The Current Iunds
include the salary/non-salary Iunds Ior the employees oI PHE, H&PP and LG&RD
devolved to TMAs.

2. The release oI above mentioned Iunds and releases Ior the Iuture months shall be
adjusted according to the Iinal Award oI the Provincial Finance Commission and the
actual revenue receipts oI the Provincial Government.

3. The amount as indicated against individual TMAs/ Cantonment Boards shall be
credited in the bank accounts oI the TMA/Cantonment Boards by the Accountant
General Punjab/District Accounts OIIicers by issuing an authority to this eIIect to the
State Bank/ National Bank oI Pakistan as the case may be.

4. The above-mentioned aggregate amounts shall be debitable to Provincial Account
No. I (Non-Iood) during the Iinancial year 2004-05 to the Iollowing heads oI account:

Amount Head of Account

Rs.538.407 million Grant No.P.C.21031 Miscellaneous
01 General Public Service
014 TransIers
0142 TransIers Others
014103 To TMAs
A05 Grants
052 Grants Domestic
A05204 TMAs
----------

RESOURCE TRANSFERS TO TMAs FOR
THE MONTH OF 1ULY, 2005

Sr. # Name of District / TAMs Release of Current Budget + Development
Grant + Grant in Lieu of Octroi
1 2 3
1401 Rawalpindi 34.859
Rawalpindi 18.320
Cantonment Rawalpindi 7.724
Gujar Khan 2.772
Kahuta 1.788
Murree 1.506
Kotli Sattian 0.939
Taxila 1.810
1402 Attock 7.582
Attock 1.031
Hassanabdal 1.541
Fateh Jang 1.802
Jand 1.636
Pindi Gheb 1.572
1403 1helum 7.454
Jhelum 3.714
Pind Dadan Khan 2.140
Sohawa 1.600
1404 Chakwal 7.895
Chakwal 4.043
Talagang 2.632
Choa Saidan Shah 1.220
1405 Sargodha 21.503
Sargodha 10.716
Cantonment Sargodha 0.972
Sillanwali 1.790
Bhalwal 4.467
Shahpur 1.648
Sahiwal 1.910
1406 Mianwali 9.768
Mianwali 4.710
Isa Khel 2.962
Piplan 2.096
1407 Bhakkar 8.644
Bhakkar 3.115
Derya Khan 2.183
Mankera 1.366
Kallur Kot 1.980
1408 Khushab 6.981
Khushab 5.502
Noorpur 1.479
1409 Gujranwala 31.210
Gujranwala City. 19.780
Gujranwala Sadar 3.356
Kamoke 2.610
Wazirabad 3.400
Nowshera Virkan 2.064
1410 Hafizabad 5.790
HaIizabad 3.521
Pindi Bhattian 2.269
1411 Gujrat 13.559
Gujrat 7.914
Kharian 4.230
Sarai Alamgir. 1.415
1412 Siaikot 20.937
Sialkot 13.306
Cantonment Sialkot 0.583
Daska 4.128
Pasrur 2.920
1413 Narowal 7.455
Narowal 3.988
Shakargarh 3.467
1414 M.B. Din 7.465
Mandi Bahauddin 3.300
Phalia 2.279
Malakwal 1.886
1415 Lahore 10.030
City District Lhr. -
Cantonment Lahore -
Ravi Town 1.650
Data Gunj Bakhsh 2.468
Shalirnar Town 1.361
Aziz Bhatti Town 0.724
Iqbal Town 1.496
Nishtar Town 2.331
1416 Sheikhupura 26.053
Sheikhupura 12.343
SaIdarabad 3.354
Ferozwala 7.183
Nankana Sahib. 3.173
1417 Kasur 13.328
Kasur. 7.442
Chunian 2.738
Pattoki 3.148
1418 Okara 12.807
Okara. 6.108
Renala Khurd. 1.926
Depatpur. 4.773
1419 Multan 33.038
Multan City 23.350
Cantonment Multan 1.843
Multan Sadar 3.580
Shuja Abad 2.325
Jalalpur Pirwala 1.940
1420 Lodhran 7.984
Lodhran 3.219
Dunyapur 2.108
Karor Pacca 2.657
1421 Vehari 12.866
Vehari 5.196
Mailsi 3.416
Burewala 4.254
1422 Sahiwat 11.675
Sahiwal 8.035
Chichawatni 3.640
1423 Pakpattan 8.054
Pakpattan 4.537
AriIwala 3.517
1424 Khanewal 12.398
Khanewal 4.264
Jahanian 1.661
Mian Channu 3.258
Kabirwala 3.215
1425 Faisalabad 73.830
Faisalabad City. 57.458
Faisalabad Sadar 3.896
Chakjhumra 1.485
Jaranwala 5.853
Samundari 2.357
Tandalianwala 2.781
1426 T.T.Singh 10.253
T.T.Singh 4.049
Gojra 3.022
Kamalia 3.182
1427 1hang 17.097
Jhang 8.821
Chiniot 4.755
Shorkot 3.521
1428 D.G. Khan 11.372
D.G.Khan 7.654
Taunsa 2.287
De-excluded area 1.431
1429 Rajanpur 7.964
Rajanpur 3.444
Jampur 2.976
Rohjan 1.544
1430 Muzaffargarh 15.288
MuzaIIargarh 5.732
Alipur 2.441
Jatoi 2.616
Kot Addu 4.499
1431 Layyah 8.730
Layyah 4.610
Karor Lal Easan 2,610
Chaubara 1.510
1432 Bahawalpur 17.013
Bahawalpur 7.106
Cantonment Bahawalpur 0.147
Ahmadpur East. 3.889
Hasilpur 2.412
Yazman 2.022
Khairpur Tamewali 1.437
1433 Bahawalnagar 15.357
Bahawalnagar 3.953
Fortabbas 1.965
Chishtian 3.942
Haroonabad 3.285
Minchinabad 2.212
1434 R.Y.Khan 22.168
Rahim YarKhan 9.280
Sadiqabad 5.178
Liaqatpur 3.270
Khanpur 4.440
GRAND TOTAL 538.407

* The release to the cantonment boards is on Provisional basis.
** Rs.2.500 million hat been deducted against excess release oI Rs.5.000 million to
TMA, Attock Ior water supply and drainage scheme Attock.
----------

No. FD(FR)11-2/89
FINANCE DEPARTMENT

Dated Lahore, the 6
th
July, 2005

Subject: ENHANCMENT OF POWERS OF PROVINCIAL DEVELOPMENT
WORKING PARTY (PDWP)

Sir,

I am directed to state that the National Economic Council (NEC), in its meeting
held on 27-05-2005, decided to enhance the powers oI the Provincial Development
Working Party (PDWP) in the Iollowing manner:

'The power oI Provincial Development Working Party(PDWP) were enhanced to
sanction development schemes, costing up to Rs.5.00 million, Ior projects other
than Irrigation sector, provided no Federal Iunding or external Iinancing was
involved in the cost oI project.

2. The sanctioning powers oI the Provincial Development Working Party (PDWP),
and notiIied vide Planning & Development Department`s letter
No. 35(231)RO(COORD)/P&D/2004, dated 12
th
April, 2004, shall stand amended,
accordingly.
----------

No. PA/DS(Dev)6-7/2005
FINANCE DEPARTMENT

Dated Lahore, the 6
th
July, 2005

Subject: PAYMENT OF SALARIES TO WORK-CHARGED EMPLOYEES.

It has come to the notice oI the Finance Department that certain TMAs are not
making salary payments to the bonaIide work-charged employees working on the water
supply schemes being maintained by the TMAs, rather other employees not on the pay-
roll oI the TMAs are receiving such payments which is a serious Iinancial irregularity. It
may be reiterated that the Finance Department is providing Iunds Ior the operation &
maintenance oI water supply schemes under the charge oI TMAs. These Iunds are to be
utilized Ior paying the O&M cost oI the water supply schemes, which includes the salary
oI work-charges employees, electricity dues and maintenance and repair work. The salary
payment is to be made to the work-charged employees working on the water supply
schemes only and not any other employee.

2. All the TMAs are directed to ensure Iull compliance with the above instructions.
Any deviation Irom these will be dealt with strictly and the amount adjusted against the
monthly assignment oI the TMAs.
-----------
No. IT(FD)3-4/2002(A) Vol-VIII
FINANCE DEPARTMENT

th
July, 2005

Subject: GUIDE LINES FOR BUDGET PREPARTION BY LOCAL
GOVERNMENTS IN THE FINANCIAL YEAR 2005-06

Kindly reIer to the policy guidelines/clariIication, issued vide this departments
letter oI even numbers dated 11th, 24th, 25th and 29th June 2005 on the above noted
subject.

2. Certain District Governments have raised the Iollowing questions with regard to
the application oI prorata budgetary expenditures under the relevant provisions oI the
PLG02001:

(i) Incurrence oI expenditure on development schemes executed by the District
Government against Iunds provided under Account No. I.

(ii) Incurrence oI expenditures against tied grants / speciIic purpose grants, the
Iunds whereoI have been provided under District Fund Accounts No. IV.

(iii) Incurrence oI expenditures against schemes under the CCBs.

(iv) Execution oI ongoing schemes as reIerred to in para 2(vi) oI this
department`s letter oI even number dated 24.6.2005.

3. It is clariIied, as below, seriatim:-
(a) There are no percentage budgetary constraints in the matter oI incurrence oI
expenditure on the execution oI schemes against Provincial Account No. I.

(b) The execution oI development schemes against Iunds provided Ior speciIic
purpose as tied grants may continue unabated. The Local Government and
Rural Development Department is being requested to invoke the provision oI
Section 197 oI the PLGO, 2001 to cater Ior this requirement in the existing
circumstances.

(c) No expenditure shall be incurred on CCBs by the incumbent local
governments. However, such cases, which are ripe Ior undertaking may be
reIerred to the LG & RD Department Ior obtaining Iormal approval.

(d) The word 1st June. 2005 reIerred to in para 2(vi) oI F.D`s letter oI 24.6.2005
implies ongoing schemes as in place on or beIore 1st June, 2005. In case any
oI the mandatory steps provided under the Rules were not complete on 1st
June. 2005, including issuance oI work order, the same shall NOT be treated
as an on-going schemes.
----------
No.IT(FD)3-4/2002(B)-Vol-VIII
FINANCE DEPARTMENT

th
July 2005

Subject: INCURRENCE OF EXPENDITURES IN EMERGENCY LIKE
FLOODS ETC.


2. The District Coordination OIIicer as Collector are empowered to incur expenditure
in case oI emergency like Iloods / earthquake / calamity etc. in terms oI Rule 27 oI the
Punjab Treasury Rules, read with Rule 4.181 oI the Punjab Subsidiary Treasury Rules.

3. A question has arisen as to whether these powers shall be aIIected or curtailed, in
any manner, in the wake oI the provision oI Section 109(6) oI the PLGO 2001, the
application whereoI is presently in Iorce under the existing circumstances, as recently
reiterated by the Finance & Local Government and Rural Development Departments.

4. It is clariIied, that incurrence oI emergent expenditures under the Rules reIerred to
in para 2 above shall not be aIIected in any manner by the provision oI Section 109(6)
ibid. Such emergent expenditures shall be incurred by the DCO against the respective
cash balance in District Fund Account No.IV, under immediate intimation to the Finance
and LG&RD Departments. The provincial government shall be liable to reimburse such
emergent expenditures, aIter due scrutiny/audit.
-----------
No.FD.PC-2-1/2005
FINANCE DEPARTMENT

th
July, 2005

Subject: REVISION OF BASIC PAY SCALES, ALLOWANCES AND
PENSION - 2005 OF CIVIL EMPLOYEES OF PUN1AB
GOVERNMENT (BS-1 TO 22)

Sir,

I am directed to state that the Governor oI the Punjab has been pleased to sanction
the revision oI Basic Pay Scales, Allowances and Pension - 2005 Ior civil employees oI
the Government oI the Punjab in BPS-1 to BPS-22, with eIIect Irom 01-07-2005, as
detailed below:-

PART-1: BASIC PAY SCALES

2. Basic Pay Scales:
The revised Basic Pay Scales, 2005 shall replace the existing Basic Pay Scales,
2001 as shown in the Annexure.

3. Fixation of Pay of the Existing Employees :
(i) The basic pay oI an employee in service on 30.6.2005 shall be Iixed in the
revised Basic Pay Scale on point to point basis i.e. at the stage corresponding
to that occupied by him above the minimum oI 2001 Basic Pay Scales.

(ii) The corresponding stage Ior Iixation oI basic pay in the aIoresaid manner in
respect oI an employee whose pay was Iixed beyond the maximum oI the
relevant scale as a result oI discontinuation oI move over policy under the
2001 Basic Pay Scales scheme shall be determined on notional extension
basis i.e. by treating the amount oI personal pay drawn by him on 30th June,
2005, as part oI his basic pay scale and the amount beyond the maximum oI
the prescribed stage in the revised Basic Pay Scales, shall be allowed as
personal pay.

4. Annual Increment:
Annual increment shall continue to be admissible subject to the existing conditions,
on 1st oI December each year. However, the Iirst annual increment oI existing
employees in Basic Pay Scales, in which their pay is Iixed on 01-07-2005, shall
accrue on the 1st December, 2005.

PART-11: ALLOWANCES

5. Special Additional Allowance
Special Additional Allowance shall continue to be admissible at Irozen level on
existing conditions.

6. Special Relief Allowance and Ad-hoc Relief:
Special RelieI Allowance and Ad-hoc RelieI sanctioned with eIIect Irom 1.7.2003
and 1.7.2004 respectively shall stand Irozen at the level oI their admissibility as on
30.6.2005 and the amount shall continue to be admissible to the entitled recipients
till Iurther orders but it will cease to be admissible to new entrants joining
Government service on or aIter 1.7.2005 as well as to those employees to whom it
was ceased to be admissible under the existing conditions.

7. House Rent Allowance
House Rent Allowance shall be admissible with reIerence to the revised Basic Pay
Scales, 2005 subject to the existing conditions.

8. Medical Allowance
Medical Allowance shall be admissible Rs.425/- p.m. subject to the existing
conditions.

9. Conveyance Allowance:
(a) Conveyance Allowance shall be admissible on revised rates as Iollows:

BPS RATES
1-4 Rs.340/- pm
5-10 Rs.460/-pm
11-15 Rs.680/- pm
16-20 Rs.1240/- pm

(b) Conveyance Allowance Rs.1240/- per month shall also be admissible to
those BPS-21 & 22 oIIicers who are not sanctioned oIIicial vehicle.

10. Other Special Pays/Special Allowances:
The rates oI Special Pays and Special Allowances shall be revised as detailed
below:-
(i) Entertainment Allowance
BPS Existing Revised
19 Nil Rs.500/- pm
20 Rs.480/- pm Rs.600/- pm
21 Rs.525/- pm Rs.700/- pm
22 Rs.725/- pm Rs.975/- pm
(ii) Daily Allowance
rdinary Special rdinary Special
1-4 80/- 110/- 125/- 200/-
5-11 100/- 120/- 155/- 220/-
12-16 180/- 200/- 280/- 365/-
17-18 320/- 350/- 500/- 640/-
19-20 400/- 450/- 625/- 825/-
21-22 450/- 550/- 700/- 1000/-
Special rates shall also be allowed at MuzaIIarabad & Mirpur AJ&K in additional
to those places at which special rates are already admissible.

(iii) Transportation / Mileage Allowance
Transportation Existing Revised
(i) Motor Car Rs.1.20/- per km. Rs.2/- per km.
(ii) Motor Cycle / Scooter Rs.0.40/- per km. Rs.1/- per km.
Mileage Allowance
(i) Personal Car / Taxi Rs.3/- per km. Rs.5/- per km.
(ii) Motor Cycle / Scooter Rs.1/- per km. Rs.2/- per km.
(iii) Bicycle/Animal
Back/Ioot
Rs.0.75 per km. Rs.1/- per km.
(iv) Public Transport Rs.0.3 per km.
(BPS-6 & below)
Rs.0.50 per km.
(BPS-7 & above)
Rs.1/- per km.

Rs.1/- per km.
Travel by Air Govt. servants in
BPS-17 and those
in receipt oI pay oI
Rs.5400/- & above
Govt. servants in
BPS-17 and
above.
Carriage of Personal/
Effects on transfer/
Recruitment
Paisa 0.148 per km
per kg (or 2.96
paisa per km per
unit oI 20 kg).
Rs.0.008 per km
per kg

(iv) Qualification Pay
Qualification Existing Revised
(i) SAS Accountant Rs.200/- pm Rs.400/- p.m.
(ii) Part-III (ICMA/ICWA) Nil Rs.400/- p.m.
(iii) ICMA / ICWA Nil Rs.1200/- p.m.
(iv) Chartered Accountant Nil Rs.1300/- p.m.
(v) StaII College / NDC Rs.750/- pm Rs.1000/- p.m.
(vi) Advance Course in
NIPA
Rs.200/- pm Rs.500/- p.m.

(v) Senior Post Allowance
20 Rs.850/- p.m. Rs.1100/- p.m.
21 Rs.925/- p.m. Rs.1200/- p.m.
22 Rs.1200/- p.m. Rs.1600/- p.m.

(vi) Deputation / Addl: Charge Allowance
Existing Revised
Deputation
Allowance
20 oI the minimum oI
the Pay Scale oI the
deputationist irrespective oI
the pay scale oI the post
against which he is working
on deputation.
20 oI the Basic Pay
subject to maximum oI
Rs.6000/- PM.
Additional Charge
Allowance
20 oI basic pay upto a
maximum oI Rs.1100/- PM.
20 oI basic pay to
maximum oI Rs.6000/-
PM.

(vii) Uniform Allowance
Existing Revised
Nurses up to BS-16 Rs.150/- p.m. Rs.300/- p.m.

(viii) PSP Uniform Allowance
Existing Revised
Rs.250/- p.m. Rs.1200/- p.m.

(ix) Special Pay to PSs / PAs
Existing Revised
Private Secretaries to Ministers / ChieI
Secretary / Chairman, P&D Board /
ACS:
(i) From the Cadre oI Private
Secretaries in BS-16
(ii) From other sources in BS-17

Rs.300/- pm.

Rs.375/- pm.

Rs.400/- pm.

Rs.500/- pm.
Private Secretaries to Secretaries Rs.225/- pm Rs.300/- pm
PAs to Ministers Rs.150/- pm Rs.200/- pm.
PAs to ChieI Secretary / ACS /
Secretaries / Addl: Secretaries
Rs.120/- pm Rs.160/- pm.

(x) Instructional Allowance
Existing Revised
20 oI the Basic Pay
subject to maximum oI
Rs.2000/- per month
(i) 20 oI the Basic Pay subject to the maximum oI
Rs.5000/- per month to those instructors imparting in
service training to the oIIicers in BPS-17 and above
who are already in receipt oI this allowance.
(ii) 20 oI the Basic Pay subject to the maximum oI
Rs.3000/- per month to those instructors imparting in
service training to the employees up to BS-16, who are
already in receipt oI this allowance.

(xi) Washing Allowance for Police Force
Existing Revised
Rs.50/- p.m. Rs.100/- p.m.

(xii) Contingent Allowances:
The Integrated Allowance Rs.150/- pm shall be admissible to Naib Qasids,
Qasids, DaItries, Farashes, Chowkidars, Sweepers and Sweepresses, w.e.I.
1.7.2005. The Washing Allowance and Dress Allowance admissible to Naib
Qasids, Frashes, Chowkidars, Sweepers and Sweepresses shall stand abolished
under this scheme.

11. The Iollowing allowances in respect oI civil employees shall stand abolished
under this scheme:

Name of Allowance Present Rate
(i) Cash Handling Allowance Rs.25/- to Rs.75/- pm.
(ii) Telecom Allowance Rs.150/- pm.
(iii) Copier/Photo stat Allowance Rs.50/- pm.

PART-111: PENSION

12. Commutation shall be admissible up to a maximum oI 35 oI Gross Pension, at
the option oI the pensioner. Admissibility oI monthly pension shall be increased
Irom the existing 60 to 65 oI Gross Pension.

13. An increase 10 shall be allowed on the amount oI pension being drawn by the
existing pensioners as well as to those civil employees who would draw pension
under the revised Basic Pay Scales, 2005.

14. The increases allowed on pension 15 and 8 w.e.I. 1.7.2003 and 1.7.2004
respectively shall not be admissible to the civil employees who would draw
pension under the revised Basic Pay Scales, 2005.

Option:
15. (a) All the existing civil employees (BS-1 to 22) oI the provincial government
shall within 60 days Irom the date oI issue oI this notiIication, exercise an
option in writing and communicate it to the Accountant General
Punjab/District Accounts OIIice / DDO concerned, as the case may be either
to continue to draw salary in the existing Basic Pay scales, in which he is
already drawing or in the revised Basic Pay Scales and pension/commutation
scheme, 2005 as speciIied in this notiIication. Option once exercised shall be
Iinal.

(b) An existing employee as aIoresaid, who does not exercise and communicate
such an option within the speciIied time limit, shall be deemed to have opted
Ior the revised Basic Pay Scales - 2005.

16. All existing rules/orders on the subject shall be deemed to have been modiIied to
the extent indicated above. All existing rules/ orders not so modiIied shall continue
to be in Iorce under this scheme.

Anomalies:
17. An Anomaly Committee shall be set up in the Finance Department (Regulations
Wing) to resolve the anomalies iI any, arising in the implementation oI the revised Basic
Pay Scales-2005.
----------
33exure

ANNEXURE TO FINANCE DEPARTMENT`S NOTIFICATION
No. FD.PC.2-1/2005, Dated 16-07-2005

Existing Pay Scales - 2001 Revised Pay Scales - 2003
BPS Min. Incr. Max. Stages BPS Min. Incr. Max. Stages
1 1870 55 3520 30 1 2150 65 4100 30
2 1915 65 3865 30 2 2200 75 4450 30
3 1980 75 4230 30 3 2275 85 4825 30
4 2040 85 4590 30 4 2345 100 5345 30
5 2100 100 5100 30 5 2415 115 5865 30
6 2160 110 5460 30 6 2485 125 6235 30
7 2220 120 5820 30 7 2555 140 6755 30
8 2310 130 6210 30 8 2655 150 7155 30
9 2410 145 6760 30 9 2770 165 7720 30
10 2490 160 7290 30 10 2865 185 8415 30
11 2590 175 7840 30 11 2980 200 8980 30
12 2745 195 8595 30 12 3155 225 9905 30
13 2925 215 9375 30 13 3365 245 10715 30
14 3100 240 10300 30 14 3565 275 11815 30
15 3285 265 11235 30 15 3780 305 12930 30
16 3805 295 12655 30 16 4375 340 14573 30
17 6210 465 15510 20 17 7140 535 17840 20
18 8135 585 19835 20 18 9355 675 22855 20
19 12400 615 24700 20 19 14260 705 28360 20
20 14710 950 28010 14 20 16915 1095 32245 14
21 16305 1070 31285 14 21 18750 1230 35970 14
22 17440 1250 34940 14 22 20055 1440 40215 14
----------
No. IT(FD)3-10/2004
FINANCE DEPARTMENT

Dated Lahore, the July 20, 2005

Subject: FINANCIAL PROCEDURE FOR THE IMPLEMENTATION OF
CHIEF MINISTER`S ACCELERATED PROGRAMME FOR SOCIAL
DEVELOPMENT.

Kindly reIer to the policy instructions issued by the FD vide letters oI even number
dated 27.09.2004 and 10.1.2005 on the above noted subject.

2. In partial modiIication oI the Iinancial procedure outlined in the said instructions, it
has now been decided as below:-

(A) FLOW OF FUNDS
The Iunds Ior the ChieI Minister`s Accelerated Programme shall be provided in the
Iollowing manner:-

(a) Where the schemes are to be executed by the district government, the Iunds
shall be respectively released in District Fund Account No. IV as a tied
grant. These Iunds shall be budgeted by the district government, and utilized
through its executing agency in the prescribed manner.

(b) The Iunds released to the district governments shall be debitable to Grant No.
36 (Development) under the relevant Entity / Function-cum-Object
classiIication under the new Chart oI Accounts.

(c) Where the schemes are to be executed by the provincial set-ups oI the
Communication and Works Department, the release oI Iunds shall be made
under Grant No. 42-Development in Provincial Account No. 1 and shall be
debitable to the relevant Entity/Function-cum-Object classiIication under the
new Chart oI Accounts.

(B) IDENTIFICATION, APPROVAL AND EXECUTION OF SCHEMES
(a) The schemes identiIied by the provincial government Ior execution by the
district governments shall be approved by the respective District
Development Committee as per its Iinancial powers. However, approval oI
the schemes executed by the provincial government shall be made by the
Departmental Development Sub Committee.

(b) The technical sanction Ior the schemes shall respectively be granted by the
prescribed competent authorities in the district/provincial governments as the
case be.

(C) ACCOUNTING PROCEDURE
The Accountant General, Punjab or the respective District Accounts OIIicers shall
maintain accounts oI all expenditures incurred in connection with the execution oI
schemes by the district governments in the prescribed manner. Likewise the
concerned executing agency in the provincial government viz the XEN shall
maintain the monthly accounts oI each scheme executed under the programme by
the provincial government in accordance with the existing rules/policy/procedures
on the subject.

(D) MONITORING & REPORTING PROCEDURE
The monitoring and reporting procedure as already prescribed shall remain
applicable to the execution oI schemes under the programme.

(E) AUDIT
Audit oI all expenditures under the programme shall be completed by the Auditor
General oI Pakistan, through his representatives.
-----------

FINANCE DEPARTMENT

th
July, 2005

NOTIFICATION

No. FD(FR)11-5/82 (P-III). The Competent authority is pleased to authorize the Head,
Project Management OIIice (PMO) and Director Technical, (PMO) oI Punjab Barrages
Rehabilitation and Modernization Project, to exercise the powers oI ChieI Engineer and
Superintending Engineer respectively, as Iigured out under Part-II Special Powers to
Certain Departments and OIIicers Irrigation and Powers Department, oI Second
Schedule to Delegation oI Financial Powers Rule, 1990.
----------
No. IT(FD)3-1/93 (Misc)(B) Vol-VIII
FINANCE DEPARTMENT

Dated Lahore, the July 26, 2005

Subject: REVALIDATION OF WORKS AND SERVICES DEPARTMENTS
CHEQUES ISSUED BY DISTRICT OFFICERS (B&R) OF DISTRICT/
CITY DISTRICT GOVERNMENTS AND TEHSIL/TOWN OFFICERS
(I&S) OF TEHSIL/TOWN MUNICIPAL ADMINISTRATIONS.


2. It has been brought to the notice oI the Finance Department, that certain contractors
executing public works Ior the District /City District Governments and Tehsil/Town
Municipal Administrations have Iailed to draw payments through Works and Services
Departments cheque(s) issued in their Iavour by the oIIices oI the Accountant General,
Punjab / District Accounts OIIicers, or the Tehsil OIIicer (Finance) / Tehsil Accounts
OIIicers respectively on or beIore 30-06-2005, during the Iinancial year 2004-2005, in
discharge oI their validly accrued liabilities. This position has essentially emerged due to
belated issuance oI cheque(s) by the respective authorities.

3. In order to alleviate the aIorestated hardship to the payees, it has been decided to
allow revalidation oI all cheque(s) oI Works and Services departments issued by the
AG (Pb) / DAOs Ior the City District/District Governments and the T.O (Finance)/TAO
Ior the Tehsil /Town Municipal Administrations, on or beIore 30-06-2005, during the
Iinancial year 2004-2005, which (i) though validly issued Ior payment by the
AG(Pb)/DAO/TO or the TO (Finance)/TAO, as the case be, could not be encashed by the
payees through bank clearance or (ii) the cheques could not be timely issued by the
AG(Pb)/ concerned DAO or the T.O(F)/TAO,. in the prescribed manner.

4. The revalidations in case oI City District Government/District Governments shall
be done by the AG (Punjab)/ concerned DAO respectively, on the submission oI a Iormal
request by the D.O (B&R) oI City District/District Government concerned, along with the
original un-cashed cheque(s). Accordingly, a new cheque (s) shall be issued, in the
prescribed manner, by the AG (Punjab) / DAO, as the case may be, in lieu oI the un-
drawn / un-cashed cheque(s) issued on or beIore 30-06-2005, aIter due scrutiny oI the
record relating to the original claim(s). The amount oI cheque(s) in case oI City/District
Government shall be debitable to the District Fund, Account No IV against the
respective budgets oI the City District Government/District Governments Ior the Iinancial
year 2004-2005.

5. The revalidation oI cheque(s) in case oI Tehsil /Town Municipal Administrations
shall be done by the respective Tehsil OIIicer (Finance)/Tehsil / Town Accounts OIIicers
(TAO) on the submission oI a Iormal request by the respective TOs (I&S), along with the
original un-cashed / un-drawn cheque(s) issued on or beIore 30-06-2005, during the
Iinancial year 2004-2005. Accordingly, new cheque(s) shall be issued, in the prescribed
manner, by the TO (Finance)/ TAO in lieu oI the under drawn / un-cashed cheque(s)
issued on or beIore 30-06-2005, aIter due scrutiny oI the relevant record relating to the
original claim(s). The amount(s) oI the cheque(s) shall be debitable to the respective
Tehsil /Town Local Fund against the respective budgets Ior Iinancial year 2004-2005.

6. The revalidations, as above, shall be Iurther subject to the Iollowing conditions:-

(a) that the cheques, under reIerence were validly issued by the AG
(Pb)/DAO/TO Ior the City District / District Government, and
TO(Finance)/TAO for TMAs respectively on or beIore 30th June, 2005, in
discharge oI valid accrued liabilities;

(b) that the amount oI each cheque, aIter it`s issuance, had been debited to the
respective budgetary allotment oI the scheme/work oI the District/City
District Government or the Tehsil/Town Municipal Administration, as the
case be, Ior the Iinancial year 2004-2005;

(c) that the expenditure corresponding to amount oI each cheque had been
entered and booked in the respective cash book maintained by the AG (Pb)
/DAO or the TO(1&S) as the case be, in the respective date, Ialling on or
beIore 30-06-2005, and that the cash book was closed on 30-06-2005, and
duly veriIied thereaIter by an authorized representative oI the Director
General (Audit) Works, Lahore, as prescribed;

(d) that the serial number oI the respective cheque (including the last cheque)
preceded the number oI the last cheque issued by the AG (Pb) / DAO or the
TO (Finance) /TAO oI the City District /City District Government or the
Tehsil / Town Municipal Administration, as the case be, on or beIore 30-
06-2005 and communicated to the Director General Audit (Works), Lahore,
on 30-06-2005 telegraphically in the prescribed manner;

NOTE: (i) The above policy shall only be applicable to cheques oI the Works and
Services department issued by the District /City District Governments or the
Tehsil /Town Municipal Administrations, pertaining to Iinancial year, 2004-
2005.

(ii) The re-issuance oI cheques in the aIoresaid manner would not be admissible
in case oI ~self & special-cheques issued on or beIore 30-06-2005.

(iii) The revalidation shall not be applicable in case oI payment oI arrears oI
electricity dues to WAPDA as stipulated in FD`s policy instructions No. SO
(PD)/1-1/94-95, dated 20th July, 1998.

7. The policy regarding revalidation oI PWD cheques oI the Provincial Works
Departments has been issued separately.
----------

No. IT(FD)3-2/2003
FINANCE DEPARTMENT

Dated Lahore, the 5
th
August, 2005

Subject: TAMEER-E-PUN1AB PROGRAMME 2004-2005.

I am directed to reIer to the subject cited above, and to state that it has come to the
notice oI the Finance Department that the implementation oI the Tameer-e-Punjab
programme during the current Iinancial year 2005-06 is partly held up due to the non-
availability oI Iunds in the joint PLAs oI DCOs/EDO (F&P) on account oI lapsing oI
unspent balances on 30th June, 2005.

2. I am to state, that in order to enable this department to provide the said Iunds
expeditiously during the current Iinancial year, the District Governments may be advised
to take the Iollowing steps:

(a) Reconcile the expenditure incurred on the programme through the PLAs with
the respective District Accounts OIIicer/ Treasury OIIicer.

(b) Workout the unspent balance in the PLA, and obtain a certiIicate oI the
aggregate amount lapsing on 30th June, 2005.
(c) Send the above inIormation/certiIicate to the LG&RD department
immediately.

3. The LG&RD may duly recommend each case oI reinstatement oI Iunds to the
Finance Department Ior reauthorization during the current Iinancial year 2005-06.
----------

No. IT(FD)3-4/2002(A)-Vol-VIII
FINANCE DEPARTMENT

Dated Lahore, the 9
th
August, 2005

Subject: GUIDE0LINES FOR BUDGET PREPARATION BY LOCAL

Kindly reIer to the policy guidelines/clariIications, issued on the subject by the
Finance Department between 11th-29th June and 13th July 2005.

2. A question has Iurther arisen as to whether the local governments are competent to
incur expenditure on Maintenance and Repair, given the constraints applied on the
development expenditures under the present circumstances.

3. It is clariIied that the local governments may undertake emergent Maintenance &
Repair works, provided that the expenditure under this object shall not exceed that
incurred on Maintenance & Repair works, correspondingly undertaken during the last
Iinancial year, computed on pro-rata basis, plus an 8 increase (overall). Provided
Iurther that such expenditure shall not be incurred beyond the period speciIied in
LG&RD Department`s letter No. SO.D-II (LG)4-1/2005, dated 26th July 2005.
----------

No. IT(FD)3-4/2002 Vol-VIII
FINANCE DEPARTMENT

th
August, 2005


Kindly reIer to the Iollowing clariIication contained in para 3(c) oI this
department`s letter oI even number dated 13th July 2005 on the above noted subject:-

Para 3(c) 'No expenditure shall be incurred on CCBs by the incumbent local
governments. However, such cases, which are ripe Ior undertaking may be
reIerred to the LG&RD Department Ior obtaining Iormal approval.

2. The matter has been Iurther considered in this department, and it has been decided
to allow on-going CCB projects oI the Iinancial year 2004-05 during the current Iinancial
year 2005-2006, provided that the prorata budgetary constraints are observed by the
respective local governments.
----------
No. SO(TT)12-1/82
FINANCE DEPARTMENT

Dated Lahore, the August 19, 2005

Subject: ESTABLISHMENT OF DISTRICT TREASURY/DISTRICT
ACCOUNTS OFFICE AT NANKANA SAHIB - AUTHORIZATION
OF PAYMENTS.

Kindly reIer to this department`s letter oI even number dated 7th July, 2005, on the
subject noted above, outlining various steps Ior establishing the District Accounts OIIice,
Nankana Sahib, and making it Iunctional w.e.I. 1st August, 2005. In the interregnum the
Iunctions oI DAO, Nankana Sahib were entrusted to the DAO, Sheikhupura, including
the disbursement oI salaries Ior the months oI June and July, 2005.

2. However, due to certain procedural delays, the DAO, Nankana Sahib has not been
able to become operational as scheduled. It has thereIore, been decided that the DAO,
Sheikhupura shall continue to perIorm Iunctions oI DAO, Nankana Sahib for a further
period of two months i.e. for August & September, 2005, including disbursement oI
salaries oI the establishments now Ialling under the jurisdiction oI DAO, Nankana Sahib.
The expenditures Ior the months oI August & September, 2005 shall accordingly be
debited to, and accounted Ior by the DAO, Sheikhupura.

3. Meanwhile, the District Accounts OIIicer, Nankana Sahib shall ensure to take all
prescribed steps to operationalize the DAO, Nankana Sahib w.e.I. 1st October, 2005. The
step listed at in para 3(v) oI this department`s letter oI even number dated 7th July, 2005
shall, however, be implemented mutatis mutandis.
----------
FINANCE DEPARTMENT

rd
August, 2005.
NOTIFICATION

No. FD(FR) II-5/82. In exercise oI the Powers conIerred upon him under Article 119 oI
pleased to direct that in Part-I, OIIicer in Category-I, oI the First Schedule to Delegation
oI Financial Powers Rules, 1990, the Iollowing amendments shall be made, with
immediate eIIect:-

Amendment:
70. 'Dean Children`s Hospital / I.C.H. Lahore, attached with government oI the
Punjab, Health Department.

'33 Director, Paediatrics Hospital, Lahore. Deleted.
----------
FINANCE DEPARTMENT

Dated Lahore, the 6
th
September, 2005.
NOTIFICATION

No. FD(FR) II-5/82. In exercise oI the powers conIerred upon him under Article 119 oI
pleased to direct that in Part-I OIIicers in Category-I oI the First Schedule to the
Delegation oI Financial Powers Rules, 1990, Iollowing shall be substituted, with
immediate eIIect:-

Amendment:
25- Project Director/Programme Director/Head, PMU, 'Asian Development
Bank schemes.
----------
FINANCE DEPARTMENT

Dated Lahore, the 6
th
September, 2005.
NOTIFICATION

No. FD(FR) II-5/82 (P-III). In exercise oI the Powers conIerred upon him under Article
119 oI the Constitution oI Islamic Republic oI Pakistan, 1973, the Governor oI the
Punjab, is pleased to direct that, in relaxation oI the provisions contained in Part-I oI the
Second Schedule to the Delegation oI Financial Powers Rules, 1990, while exercising the
Iollowing Iinancial powers:-

(i) Full powers to re-appropriate Iunds Irom one head oI account to another head
oI account within the allocated budget oI Ombudsman, Punjab.

(ii) Full powers to sanction expenditure on any item Irom within the allocated
budget oI Ombudsman, Punjab.

2. The aIoresaid powers shall take immediate eIIect.
----------
No. IT(FD)3-2/2003
FINANCE DEPARTMENT

Dated Lahore, the September 07, 2005

Subject: TAMEER-E-PUN1AB PROGRAMME - FINANCIAL PROCEDURE/
REFUND OF SECURITIES OF CONTRACTORS.

Kindly reIer to your letter No. DO(A)/Accountant/TPP-2002-05/Sec(8-05)/ 846
dated 10.8.2005, on the subject noted above.
2. The matter under reIerence has been examined in this department, and it is advised
as under:-

(i) Securities oI contractors pertaining to the TPP 2004-05 placed in a
commercial bank account on or beIore 30.6.2005, jointly pledged in the
names oI EDO(F&P) and the respective contractor, shall be
released/reIunded by the EDO(F&P), in the prescribed manner, on the basis
oI the relevant record available with the oIIices oI EDO(F&P)/ADLG, as the
case be.

(ii) Securities oI contractors pertaining to the TPP 2005-06 deposited/deducted
w.e.I. 1.7.2005 under the Rules shall be pledged jointly in the names oI
respective contractor and the ADLG, and subsequently reIunded/released by
the latter, as prescribed.

(iii) All other conditions relating to the deduction/reIund/release oI securities oI
contractors under the Rules / Instructions shall apply mutatis-mutandis.
-----------
No. IT(FD)3-15/200
FINANCE DEPARTMENT

th
September, 2005

Subject: TRANSFER OF HOUSING SUBSCRIPTION FUND RECEIPTS IN
THE PUBLIC ACCOUNT OF THE PROVINCE (ACCOUNT NO.1.

Kindly reIer to the accounting procedure circulated by the Finance Department
vide No. IT(FD)3-15/2004 dated 13.04.2005 regarding the Punjab Government Servants
Housing Subscription Fund.

2. The Managing Director, PGSHF has reported that the prescribed procedure in the
matter oI transIer oI aggregate deductions Irom A/C No. IV to Public Account oI the
Province is not being observed in letter and spirit, with the result that the PGSHF is
Iacing Iinancial loss, beside impeding the development works intended by the Ioundation.
A copy oI the letter received Irom the PGSHF is enclosed Ior Iacility oI reIerence.

3. The position has been viewed by the Finance Department with concern. It is re-
iterated, that the laid down procedure may be strictly observed. Any Iailing in this regard
will be attributed to as a personal lapse oI the concerned oIIicer(s).
----------
No. IT(FD)3-4/2002 Vol-VIII
FINANCE DEPARTMENT

th
September, 2005

Subject: INCURRENCE OF EXPENDITURES IN EMERGENCY LIKE
FLOODS ETC.


2. In partial modiIication oI para 2 and 4 oI this Department`s letter oI even number
dated 13
th
July, 2005 the word 'District Coordination Officer appearing in line 1 and 3
respectively shall stand substituted with the word District Officer (Revenue).

3. All other provision oI Rules, as prescribed shall apply.
----------

No. IT (FD) 3-1/2005
FINANCE DEPARTMENT

Dated Lahore, the 12th October 2005

Subject: PRESIDENT`S RELIEF FUND FOR EARTHQUAKE VICTIMS-2005 -
CONTRIBUTION OF ONE / TWO DAYS BASIC SALARY BY ALL
OFFICIALS /OFFICERS IN BS-1 TO BS-22

Sir,

I am directed to reIer to the subject noted above, and to state that in pursuance oI
the decision oI the Punjab Government, all oIIicials oI the Provincial Government in BS-
1 to BS-16, shall contribute one days salary and oIIicers in BS-17 to BS-22 shall
contribute two days salary, including those serving in the local governments, as well as
autonomous and semi-autonomous bodies towards the Presidents Relief Fund for
Earthquake Victims-2005.

This decision shall also apply to oIIicials / oIIicers holding posts on contracts upto BS-
16, as well as in BS-17 and above equivalent, including those drawing lump-sum pay
packages, and 'M salaries and MP salaries.

2. I am to state, that the deductions on account oI said contribution shall be made
against the salary Ior the month oI October, 2005, and shall be credited to the Public
Account oI the Federal Government in the Iollowing Head oI Accounts:-
G 12-Special Deposit Fund
G 121-Relief Funds
G 12130- Presidents Relief Fund for Earthquake Victims-2005

3. I am to Iurther state, that the amount oI contribution shall be excluded Irom the
emoluments oI the concerned oIIicers / oIIicers Ior the purpose oI calculation oI Income
Tax, and deduction oI recovery oI house rent charges. In the case oI deductions made
Irom salaries disbursed Irom Account No. IV oI District Governments, and Irom the
Tehsil/Union Local Funds, the procedure as prescribed Ior crediting Income Tax
deductions shall be Iollowed mutatis-mutandis Ior crediting the deductions to the RelieI
Fund.

4. I am to request an early action and strict compliance please.
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No. IT (FD) 3-11 /2004
FINANCE DEPARTMENT

Dated Lahore, the November 01, 2005

Subject: DEVELOPMENT EXPENDITURE STATEMENT OF THE DISTRICT
GOVERNMENTS.

Kindly reIer to this department`s policy instructions bearing No. IT(FD)3-11/2004
dated 9.10.2004 on the subject noted above.

2. The development expenditure statement oI the District Governments as cited in the
subject are not being received in the prescribed manner.

3. This position has been viewed by this department with great concern. It, is
thereIore, reiterated that the requisite report in respect oI the development schemes /
projects oI the respective district governments may invariably be submitted to this
department on regular basis. Any disregard will be treated as a personal lapse on the part
oI the DAO/TO.
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No. IT(FD)3-7/2001-Vol-I
FINANCE DEPARTMENT

rd
November, 2005

Subject: SHORT-FALL IN GROUP INSURANCE PREMIMUM OF THE
EMPLOYEES OF GOVERNMENT OF PUN1AB FOR THE PERIOD
01.7.2002 TO 30.06.2005.

Kindly reIer to this department`s circular letter oI even number dated 8.6.2005,
highlighting the concerns oI the State LiIe Insurance Corporation (SLIC) regarding
shortIalls in the collection oI monthly group insurance premium in respect oI Punjab
Government employees working in District Governments, the Tehsil/Town Municipal
Administrations (TMAs), and the Union Administration (UAs).

2. However, as lately reported by the SLIC, there has been no worthwhile
improvement in the monthly collections oI group insurance premium, Irom the category
oI the employees reIerred to in para 1 above. At the completion oI the three year
triennium by the SLIC, the accumulated shortIall oI premium has reportedly touched the
Rs.151.82 million mark.

3. In a Iollow-up meeting held with the representatives oI the SLIC it has again
transpired that the reasons as already stated in para 4 oI Finance Department`s earlier
circular oI 8.6.2005 were still mainly responsible Ior this shortIall. The District Accounts
OIIicers were not promptly crediting the amount oI deductions Irom District Fund
Account No. IV to Provincial Government Account No.1 in disregard oI the policy
instructions contained in this department`s letter No. IT(FD)3-4/2002 Vol IV dated
17.3.2003, duly reiterated on 10.6.2004 and 22.12.2004.

4. Meanwhile, the TMAs and the UAs were also not discharging they enjoined
Iunctions in the desired manner, contributing to the shortIalls in collection oI group
insurance premium. It is reiterated that the insurance premium in respect oI civil servants
working in TMAs and UAs be deducts promptly, at the prescribed prevalent rates, and
deposited in the government accounts as per the laid down procedure. Also, the arrears,
where due on account oI the collections be urgently computed and remitted to the SLIC
on top, priority basis. This action may invariably be completed by 31st December,
2005.

5. Meanwhile, DAOs are advised to provide all necessary assistance to the
representatives oI SLIC who would be shortly visiting their oIIices to identity the reasons
Ior the continuous shortIalls, and the reconciliation oI accounts.
----------
No. IT(FD)3-11/2004
FINANCE DEPARTMENT

Dated Lahore, the 1
st
December, 2005

Subject: DEVELOPMENT EXPENDITURE STATEMENT OF THE DISTRICT
GOVERNMENT

Kindly reIer to the policy instructions contained in this department`s letter oI even
numbers dated 9.10.2004 and 1.11.2005 on the above noted subject.

2. It is regretted to state that your oIIice has Iailed to send the requisite report
pertaining to the development schemes/projects oI the respective district governments.
This has been viewed seriously by the Finance Secretary.

3. It, is thereIore, once again reiterated that the requisite report may invariably be
submitted to this department on regular basis. Any disregard to this eIIect will be
considered as a personal lapse on the part oI the respective DAO/TO.
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No. SO (DG)1-12/2005
FINANCE DEPARTMENT

Dated Lahore, the December 24, 2005

Subject: LOCAL GOVERNMENT FINANCE - ASSIGNED RECEIPTS OF
THE DISTRICT GOVERNMENTS

Kindly reIer to the subject cited above.

2. Certain District Governments have sought clariIication regarding the latest policy
directions relating to the deposit oI their receipts in District Fund Account No. IV. In this
regard, attention is invited to the instructions contained in FD`s letters No. IT (FD)3-
4/2001 dated 14.8.2001, and No. IT (FD)3-4/2002 dated 15.07.2002, whereby it was
inter-alia advised as Iollows:-

Para 2 of letter No. IT(FD)3-4/2001 dated 14.8.2001
The receipts creditable to the Punjab District Provincial Government Accounts and
the relevant heads oI accounts to which these would be credited shall be separately
notiIied by the Finance Department in consultation with the CGA.

Para 2 (i))(h) & (i) of letter No. IT(FD)3-4/2002 dated 15.7.2002
(h) All taxes / Iees being credited to the erstwhile Local Fund shall continue to
Iorm the receipts oI the newly created District Fund.

(i) All Provincial government taxes / Iees etc (including UIP tax) being collected
by the devolved departments, which were being credited to the Provincial
Government Account No. I, shall continue to be so credited to the same Provincial
Account.

3. Later the Finance Department vide letter No. IT(FD)3-4/2002 dated 27.8.2002
prescribed the Iollowing mechanism Ior the transIer oI Local Fund balances to District
Fund Account No.IV:-

Para 3(i) of FD`s letter No. IT(FD)3-4/2002 dated 27.8.2002

Transfer of Local Fund balances to District Fund
As envisaged in sub paras 2(i)(c) and (I) oI this department`s letter (dated
15.8.2002) under reIerence, all balances oI erstwhile Local Fund are required to be
transIerred to the respective District Fund in the manner prescribed therein. Such
balances may accordingly be credited immediately to the Iollowing Head oI
Account approved by the CGA.

District fund (Account No. IV)
1000000 Non Tax Receipts
1300000 Miscellaneous Receipts
1390000 Others
1391000 Others (NES)
1391811 District Government Receipts Irom Local Fund

4. The Controller General oI Accounts (CGA) vide No. 7-Comp-l / 5-108/2003 dated
8.1.2004 introduced the Local Governments Accounts Manual aIter approval by the
Auditor General oI Pakistan. Parts IX & X oI the Manual inter-alia prescribe various
receipt heads Ior credit to the Public Account and District Fund Account No. IV.

5. It is accordingly advised, that the District Governments may credit all receipts
assigned to it under Section 107 (2) oI the PLGO 2001 (as amended) in District Fund
Account No. IV, or its Public Account, as the case may be, in the prescribed manner,
under the heads oI accounts speciIied in the Local Government Accounts Manual. It is
added that with the latest amendment in Section 118 oI the PLGO 2001 the instructions
regarding the collection and assignment oI UIP tax shall be issued separately.
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No. IT(FD)3-15/2005
FINANCE DEPARTMENT

th
December, 2005

Subject: CHALLENGING OF GOVERNOR`S DECISIONS UNDER THE
PUN1AB OFFICE OF THE OMBUDSMAN ACT, 1997.

I am directed to reIer to the subject noted above and to state that under Section 32
oI the Punjab OIIice oI the Ombudsman Act, 1997, representation against orders oI the
Ombudsman lie beIore the Governor. The Act ibid does not provide any Iurther appeal or
revision against the orders oI the Governor.

2. I am, however to state, that in rare cases private persons aggrieved by the orders oI
the Governor challenge these through constitutional writ petitions in the Lahore High
Court under Article 199 oI the Constitution. It has also been observed, that in some cases,
the autonomous bodies assail the orders oI the Governor in the Lahore High Court.

3. I am to state, Iurther, that although there is no cavil to the Iact that the orders
passed by the Governor could be assailed by any aggrieved party in the Superior Courts
by invoking extraordinary jurisdiction in the Iorm oI a constitutional petition, however,
propriety warrants that such like remedy against the orders oI the Governor, who is the
constitutional head oI the government, should not ordinarily be invoked by the
Administrative Departments, Attached Departments and such statutory bodies, which are
under the administrative control oI the government.

4. It has thereIore, been decided that any Government institution wishing to assail the
orders oI the Governor shall make a request to the Government in the Law Department
Ior obtaining approval oI the Government to challenge any order passed by the Governor
in a representation against the order oI the Ombudsman.

5. I am to bring the above position to the notice oI all concerned Ior strict observance.
-----------
No. FD.SR.1/9-7/2003
FINANCE DEPARTMENT

Dated Lahore, the December 27, 2005

Subject: GRANT OF HONORARIUM

Sir,

I am directed to reIer to this Department`s letter No. FDSR-111-12-31/82 dated 15-
05-1988 on the above-mentioned subject and to say that in partial modiIication oI the
same it has been decided as under: -

(a) Head oI the Administrative Department may sanction an honorarium upto
one month`s basic pay and the Head oI the Attached Department upto halI
month`s basic pay (without any maximum limit) to a civil servant Ior work
perIormed by him which is occasional in character and either laborious or oI
such special merit as to justiIy a special reward when the services rendered
by him Iall within the course oI his ordinary duty like good perIormance,
achievements oI targets or any special assignment related to the post.
Competent authority may sanction such honorarium to a civil servant
irrespective oI his Pay Scale iI he is otherwise eligible.

(b) However, when a civil servant accomplishes a special assignment beyond
normal Iunctions assigned to his post and Administrative Department deems
it necessary to grant him honorarium more than one month`s basic pay, the
Administrative Department will move a Summary Ior the ChieI Minister
with Iull justiIications and will route it through the Finance Department. No
re-appropriation may be made to the provision made in the budget Irom
which honorarium is paid.

2. This issues with the approval oI the ChieI Minister.
----------
No. SO(TT)3-34/68, Vol-XI
FINANCE DEPARTMENT

Dated Lahore, the 5
th
January, 2006

Subject: PREPARATION OF DISTRICT BUDGET FOR 2006-07 ON NAM/
SAP R/3 UNDER PIFRA.

Kindly reIer to the subject noted above and Iind enclosed a copy oI the reIerence
No. PIFRA/LHR/11/883, dated 04-01-2006, alongwith a proIorma, on the above noted
subject, the contents whereoI are selI-speaking.

2. You are requested to kindly provide requisite inIormation / data as per the annexed
proIorma, within two weeks, directly to the Director Operations, PIFRA, oIIice oI the
Accountant General, Punjab, Lahore under intimation to this department.

3. The matter most urgent.
----------

PIFRA DIRECTORATE, LAHORE
!rofect to Improve inancial #eporting & Auditing
A.G. OIIicer 1-Turner Road, Lahore

No. PIFRA/LHR/11/883 Dated Lahore, the 04-01-2006

Subject: PREPARATION OF DISTRICT BUDGET FOR 2006-07 ON NAM/SAP
R/3 UNDER PIFRA

This is to inIorm you that this oIIice plans to undertake a survey oI all EDOs (F&P)
in Punjab to ascertain the requirements oI their sites Ior preparing the District Budgets Ior
the year 2006-07 on NAM/SAP/R3 under PIFRA. You are kindly requested to direct all
the EDOs(F&P) to extend the necessary cooperation and support to PIFRA so as to
materialize the preparation oI District Budget Ior 2006-07 in time.
----------

Finance - Department Notifications 2005 (259-322)

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Compendium of Instructions for Local Governments 259

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