HYDERABAD, June 8: The district government is preparing budget estimates for the fiscal year 2004-05 expecting 15 per cent (Rs450 million) increase in its budget by the Sindh government.

Executive District Officer of finance and planning Syed Sikandar Shah told this correspondent that the district government had been verbally told that the budget estimates should be prepared keeping in mind 15 per cent increase in the budget.

However, the Sindh government has not yet informed the district government about its budget that was supposed to be done by March 15. Estimated revenues/share of city/district governments from the divisible pool has to be conveyed by the provincial government by March 15 every year, reads a letter issued by the Sindh finance and cooperation department on June 17 last year.

An allocation of Rs530.56 million is being made for the Annual Development Programme against last year's Rs430 million, a source in finance department said. The source said that the incomplete development schemes would be completed through the ADP funds. Hyderabad Sewerage Project is one of the major but delayed schemes of the ADP that would be completed in new fiscal year, he added.

Other development schemes of the ADP related to farm to market roads at the cost of Rs106 million and roads in urban areas at the cost of Rs62 million, he said. Likewise education sector will have an allocation of Rs92 million followed by health department which will get Rs14 million, according to the source.

Non-development sides of budgetary estimates had not been finalised so far, he said. A finance department official said that last year the district government had presented a total outlay of around Rs3.204 billion which was subsequently altered after some changes were made by the district council members.

The district government receives its share of Rs6.4 million per month of octroi and district tax from the central government which was utilized for the district nazim and council's secretariats and payment of salaries of employees of the defunct district council last year.

The source said that so far it was not known whether any increase was being made in octroi and district tax allocations. He said that there would be no separate budget for the defunct district council as allocation of separate budgetary estimates had led to stormy debates in the district council last year.

It was objected that since the district council had been devolved, there was no reason why separate budget should be prepared for it. The EDO, finance and planning, said that around 30 per cent employees of the defunct district council had been absorbed in different departments but unless their salaries were approved through their departments by the Sindh government, they would continue to get salaries from district council's secretariat.

He said that the employees had been absorbed in health and other departments. He said that separate codes had been allotted to the district nazim and council secretariats for the operation of their accounts in the district treasury.

The EDO, finance, recently held a meeting with the district council members, including Abdul Qadeer Qazi and Syed Ali Mohammad Shah, to discuss different issues related to the budgetary estimates. Another meeting in this regard will be held on next Monday.