HYDERABAD, Oct 12: The finance department of Sindh has not approved budgetary proposals for the year 2005-06 and revised estimates of 2004-05 for the undivided Hyderabad district on the ground that these proposals needed some rectification.

The district government would seek a formal approval from the district council, Hyderabad, under the provisions of Sindh Local Government Ordinance (SLGO) 2001 and after rectifying budget as required by the provincial finance department.

District finance department sources said on Wednesday that they had submitted budgetary proposals not only for newly-created district of Hyderabad but also for three other districts of Tando Mohammad Khan, Matiari and Tando Allahyar in June after Sindh government’s finance department barred district governments from presenting budgets before their district councils.

The Hyderabad district government’s budget was not presented before the house in the wake of division of Hyderabad district out of which three more districts were carved out.

The Hyderabad district government had prepared budgetary proposals for three new districts with 20 per cent enhancement in allocations for development and 15 per cent in non-development expenditures on the basis of population.

Proposals were open to amendments by the provincial government’s finance department.

The proposals were prepared in accordance with the strength of employees for each group of office of district government concerned.

In the last fiscal year, district government had got Rs4.02 billion budget approved from the district council for erstwhile district Hyderabad against one line budget of Rs3.16 billion, given by the Sindh government.

However, finance officials of Hyderabad district prepared deficit and tax free budget for Hyderabad and new districts, containing details of requirement of around 3179 new jobs and 95 new development schemes under ADP for three newly carved out districts during year 2005-06.

According to budget details, the new districts needed around 3179 posts including 1122 for Tando Allahyar, 1097 for Tando Mohammad Khan and 960 for Matiari.

Hyderabad district was to get around Rs2.498 billion for 2005-06 including Rs2.170 billon for non-development and Rs328 million for development heads.

Budgetary estimates for development side are calculated at Rs328 million with Rs13 million on revenue and Rs314 million on capital side against more than 60 new and 55 on-going development works.

Around Rs916 million for non-development and Rs116 million for development works including on-going and new development are allocated for 2005-06 budget for Matiari.

A total number of 47 new schemes were being introduced at a cost of Rs84 million.

The budget volume of Tando Mohammad Khan stood at Rs611 million including Rs515 million for non-development expenditures and Rs96 million for development side.

There are 24 new schemes for which Rs63.428 million were earmarked, bringing volume of development budget to Rs96 million with Rs4.593 million on revenue and Rs91.407 on capital side.

Tando Allahyar district’s budget stood at Rs826 million including Rs723.195 million for non-development and Rs103 million on development side. Rs47.039 million were allocated for 22 on-going schemes and for 24 new schemes Rs55.961 million are earmarked, putting total size of development head at Rs103 million for all 46 on-going and new works.

Sources said that provincial finance department returned the budget with some observations, requiring rectification in the documents. Besides Sindh finance department, the district government would present it before the district council to seek its approval which was mandatory as per the Sindh Local Government Ordinance (SLGO).

A communication of September to the district government stated that finance department examined budget document to seek whether they were prepared according to new budget rules and how far the grants/octroi zila tax had been reflected in them.

It said that details required as per budget rules like public accounts, details of receipts, details of current expenditures by detailed function and major object and function wise development expenditures were missing from the annual budget statement (ABS).

The district government attempted to prepare budget as per new rules by providing main forms like estimate of receipts, current expenditure, development abstract of demand for grants.

The finance department said that district government failed to keep its promise under the Sindh Devolved Social Services Programme (SDSSP) to maintain expenditures on education and health as a percentage of its revenue at 2003-04 level.

The district government decreased expenditures on education and health as percentage of receipts.

Sources said that details, required by finance department, would be provided in separate tables and proforma.