Finance Zhob

 

District Accounts and Development Funds

 District Accounts

 Efforts have been undertaken to include in each of the District Profiles a comprehensive overview of the flows of public funds within and in and out of each district. These efforts have proven to be more successful in some districts than in others. However, for not a single district a more or less complete overview could be obtained. The great range of sources of income and the great number of points in the system where expenditures are made was certainly one of the major causes. In the table in paragraph 4.6. some information is given about which institution collects what kind of revenue, but amounts of revenues collected are missing.

 Despite the failed efforts to assemble an overall picture of money flows, one conclusion can safely be drawn: the income collected in the district does not suffice to cover the expenditures made in the district. This applies to both the recurrent and the development costs. This means that the district is dependent on transfers from outside to run its affairs. It implies also that for any significant development funds from outside the district are needed. This means that, in the present system, a substantial part of the decision making process on development activities lies outside the district.

 

Development Funds.

 The most important source of development funds is the provincial Public Sector Development Programme (PSDP). The PSDP is essentially financed from provincial funds (the provincial development budget) and from contributions from foreign donor agencies. The Planning and Development Department compiles a PSDP for every fiscal year. The PSDP is subsequently accepted by the government and the Assembly.

 The combined allocation for development schemes in Zhob district in the financial year 1995-96 was Rs.17.897 million, earmarked for 8 schemes. There was no foreign assistance component. In the next year, the overall allocation decreased sharply to Rs.3.916 million, again without any donor contribution. The funds were allocated for 6 projects.

 The PSDP for the year 1997-98 shows a total allocation of Rs.55.036 million for 25 projects, including foreign assistance amounting to Rs.14.480 million. The biggest sectors by far are roads (33%) and irrigation (25%), followed at some distance by primary health care (10.5%) and primary education (7.5%). The total SAP-sectors would receive 22% and non-SAP sectors 78%.

 Because it is not at all sure that the provincial government can avail of the funds required to finance the PSDP for the current financial year, the mentioned figures should be considered as provisional.

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