By Our Reporter
At a time when the provincial governments and the local bodies have been facing resource-crunched problems to carry out the daily activities, the Ministry of Finance (MoF) is all set to release the third installment of funds worth Rs. 75 billion to the local bodies by March 15, 2018.
However, it has not revealed any plan to provide funds to the provincial governments.
As per the provision, the Ministry of Finance is releasing Rs. 75 billion to the local bodies as the third installment on March 15.
The ministry has already released Rs. 146 billion to the local levels in two installments.
Out of the total allocation of the two tranches, the local bodies had spent around Rs. 46 billion by the first six months of the current fiscal year. The expenditure is 31.50 per cent of the total financial transfer.
The government had planned to provide a Rs. 225 billion budget to the local governments in three installments and it had already released Rs. 146 billion in two installments.
Under the allocation act, the central government has to transfer money to the reserve funds of the local government in three installments. The central government should release the budget on Shrawan-1, Mangsir 1 and Chitra 1.
The local governments have the right to use the unconditional assistance received from the central government in salaries, allowances, to meet the administrative costs and in the developments works.