HYDERABAD, April 16 The Hyderabad District Council on Thursday demanded of the Sindh government to release allocated funds to the district government and described massive cuts in the annual budgetary allocations as a conspiracy against the PPP-MQM coalition government.

A resolution was also passed in the session presided over by Ghulam Rasool Samoon.

The council discussed the situation arising out of cuts in budgetary allocations.

The resolution called for issuance of directives by the president of Pakistan and Sindh chief minister to ensure release of allocated and 10 per cent enhanced funds committed by President Asif Zardari.

The EDO and district officer finance should clear bills of the ADP and other welfare schemes prior to payment of salaries, and in case of deficit, the Sindh government should release funds to district accounts officer, the resolution read.

Q. Mohammad Hakim, chairman district council's finance committee, dwelt at length on annual allocations made to district government. Rauf Jafri, Mohammad Ahsan, Dr Arif Razmi, Rauf Jafri, Rashid Khan and Munawar Zai participated in the discussion before passage of the resolution.

The cuts had made it impossible to meet requirements of 1,100 schools of the district and of 65 government hospitals where 150,000 visited monthly in the OPDs. The number of patients was more than the patients of civil hospital Hyderabad, he added.

He said the Hyderabad district did not have funds for disabled children's schools, orphanages and vocational centres for women which were being run by district government. “All developments works have come to a halt. Works that were to be executed in each UC at a cost of Rs2 million were in jeopardy.

“Fund are not available for non-salary component that deals with the issues of utilities, fuel and stationary of officials,” he said. He disclosed that the district accounts officer had transferred Rs5 million for employees' GP fund's payment from district government's account-IV to account-1.

He described it a conspiracy against present coalition government of the MQM and PPP. He termed it an attempt to sabotage an understanding between various communities. He demanded of the president, the Sindh chief minister and governor to play their role and ensure release of remaining funds of Rs1031.66 million.

He spoke about budget's single line transfers from the Sindh government.

For 2008-09, Rs3023.94 million were allocated for Hyderabad. Its monthly share comes to Rs266.999 million.

He said that as compared to last year, Hyderabad got only four per cent raise in single line transfer this year whereas Mirpurkhas district got 12 per cent raise, Jamshoro 13 per cent, Larkana 13 per cent, Dadu 29 per cent and Matiari 51 per cent. Although these districts have no comparison with Hyderabad in terms of fiscal effort, financial performance and fiscal capacity as well as population.

The district started facing cuts from the first month of fiscal year. As per Sindh government directive, employees got 20 per cent raise in salaries, 45 per cent raise in house rent and other benefits. Besides, government's scheduled rates were revised and ratio of price-hike remained more than 100 per cent.

Overall negative fallouts over budget remained 40 per cent. He said the development budget is 16 per cent and currently uplift works were affected.

He added that in 2007-08, the finance department deducted Rs254 million from Hyderabads share, but after efforts Rs161 million were released.

He said the district nazim discussed it with President Asif Ali Zardari in Islamabad. “On his (district nazim's) persuasion, the president had asked the Sindh government to raise single line transfer of Hyderabad district by 10 per cent”, he said

He regretted so far it has not been transferred to Hyderabad despite president's directives. He elaborated that in 2008-09, finance department projected an amount of Rs2322 million whose monthly share is Rs193.27 million for employees' salaries whereas record proved Rs391 million in salaries.

The World Bank had released funds for appointment of teachers, but the finance department cut funds of their salaries from Hyderabads budget, putting an unnecessary financial burden on it.