PUNJAB UNION ADMINISTRATION (BUDGET) RULES, 2003

THE PUNJAB UNION ADMINISTRATION (BUDGET) RULES, 2003

[ SOV (LG)5-11/2003]

[5th June, 2003]

PART I

PRELIMINARY

1. Short title, applicability and commencement.- (1) These Rules may be called the Punjab Union Administration (Budget) Rules, 2003.

(2) These shall apply to all Union Administrations and Union Councils in Punjab.
(3) They shall come into force on 1st July, 2003.
2. Definitions.-
(1) In these Rules, unless there is anything repugnant in the subject or context-
(i) “Actuals” means the actual figures of receipts or expenditure relating to a financial year;
(ii) “Administrative Approval” means the concurrence and formal acceptance of the Budget and Development Committee to the incurring of the expenditure proposed in the project proposal and amounts to an order to execute the proposal subject to the approval by the Council;
(iii) “Annual Budget Statement” means the statement of estimated receipts into, the estimated expenditure from, the local government fund required to be laid before the Council before the commencement of that year;
(iv) “Annual Development Programme” means the document submitted along with the Annual Budget Statement, which includes the details of development projects included in the budget;
(v) “Appropriation” means an allocation of funds to an office on the basis of the Schedule of Authorized Expenditure;
(vi) “Budget” means a statement of the estimated receipts and expenditure of the local government for a financial year;
(vii) “Budget Calendar” means the calendar given in the Second Schedule;
(viii) “Budget Document” means the documents specified in Part X of Volume I of the Rules;
(ix) “Budget Estimate” for a financial year, means in relation to expenditure, the expenditure proposed for that year, and in relation to receipts, the receipts expected to be realized during that year;
(x) “Budget Year” or “Financial Year” means the period from July 1st to June 30, both days inclusive;
(xi) “Capital expenditure” means the expenditure met from capital receipts;
(xii) “Capital receipts” means receipts from sources other than revenue and includes-
(a) the disposal of capital assets;
(b) the sale of investments; (c) loans; and
(d) advances and deposits.
(xiii) Deleted. (xiv) Deleted.
(xv) “Charged expenditure” means such items of expenditure as are specified in the Ordinance, which are not subject to vote of the Council;
(xvi) “Collecting Officer” means the official who is responsible for estimation and realization of receipts from the area within his jurisdiction designated by the Head of Offices for the offices under his administrative control;
(xvii) “Current Budget” means the sum of approved estimates of the expenditure for a current financial year;
(xviii) “Current expenditure” means expenditure that is not development expenditure;
(xix) “Demand for Grant” means the proposal made to the Council on the recommendation of the Nazim for withdrawal of a certain sum out of the local government fund;
(xx) “Development expenditure” means any expenditure on development projects as defined in Rule 30 or any expenditure on new construction, whether of entirely new works or additions and alterations to existing works. It also includes all repairs to newly purchased or previously abandoned buildings or works required for bringing them into use and means expenditure on operations undertaken to maintain in proper condition buildings and works in ordinary use;
(xxi) “Development Budget” means the sum of approved estimates of development
expenditure for a financial year;
(xxii) “Drawing and Disbursing Officer” means the official who prepares estimates of expenditure and actually incurs expenditure in respect of the offices of which he is the Drawing and Disbursing Officer as appointed by the respective Head of Offices under his administrative control;
(xxiii) “Form” means a form prescribed under these Rules;
(xxiv) “Function” means an element used in the Chart of Accounts issued by the Auditor General of Pakistan, which provides information on particular economic activities;
(xxv) “Grant” means the amount granted by the Council in respect of a Demand for Grant as specified in the Schedule of Authorized Expenditure;
(xxvi) “Object” means a Chart of Accounts used to classify the nature of expenditure e.g.
salaries, travel, transport etc;
(xxvii) “Ordinance” means the Punjab Local Government Ordinance, 2001.
(xxviii) “Part” means a part of these Rules;
(xxix) “Project Proposal” means the project proposal, submitted by a Citizen Community
Board to the concerned Citizen Community Board official for approval by the Council;
(xxx) “Re-appropriation” means the transfer of savings of one or more units of appropriations to meet excess expenditure anticipated under another such unit;
(xxxi) “Receipt” means the cash collected by a local government;
(xxxii) “Revenue receipts” means the receipts from tax and non-tax revenues. The nontax receipts include interest, dividends, fines etc realized by a local government.
(xxxiii) “Revised estimates” means the estimate of the probable receipts or expenditure, for a financial year proposed in the course of that year, with reference to the transactions already recorded;
(xxxiv) “Schedule” means a schedule to these Rules;
(xxxv) “Schedule of Authorized Expenditure” means the schedule prepared after the approval by the Council of the Annual Budget Statement or Supplementary Budget in respect of a financial year and authenticated by the Nazim;
(xxxvi) “Section” means a section of the Ordinance; and
(xxxvii)“Supplementary Budget Statement” means the statement to be laid before the Council showing the amount of the additional expenditure estimated to be required during a financial year, over and above the expenditure already authorized, for that year;
(xxxviii)“Supplementary Grant” for a financial year means an amount provided in addition to the original Grant or appropriation approved by the Council;
(xxxix)“Surrender” means an amount included in the budget that is given back and not spent in the financial year by the office;
(xi) Deleted.
(xii) “Voted expenditure” means expenditure that is submitted to the vote of the Council.
(2) Terms and expressions used but not defined in these Rules shall have the same meaning as defined in the Ordinance. 
PART II
FUNCTIONS OF THE OFFICERS RELATING TO BUDGET
3. Functions of Finance and Budget Officer.- (1) The Finance and Budget Officer shall be responsible for the coordination of the budgetary process and for the consolidation and preparation of the budget documents of the local government.
(1) The Finance and Budget Officer shall be one of the Union Secretaries designated by the Nazim.
(2) The Finance and Budget Officer shall perform the following functions:-
(i) issue the budget call letter after approval of the Nazim, which shall include-
(a) date-wise budget calendar;
(b) instructions for preparing the budget;
(c) forms to be used in the preparation of the budget; and
(d) budget guidelines.
(ii) provide figures of available resources for formulation of budget;
(iii) examination and scrutiny of the budget proposals;
(iv) examination and scrutiny of a new expenditure;
(v) compilation and consolidation of the Budget;
(vi) communication of Grants to Drawing and Disbursing Officers;
(vii) monitoring of the budget and ensuring that funds are spent as approved by the Council;
(viii) examination and scrutiny of proposals for Re-appropriation and Supplementary Grants;
(ix) provide financial information to the Council relating to local government;
(x) submit reports on budgetary performance;
(xi) monitor the receipts and expenditure of the local government; and
(xii) provide such other supervision and administration as may be required from time to time in connection with or ancillary to any of the foregoing aspects of the budgetary process.
4. Head of Offices.- (1) The Head of Offices means Nazim for all staff of the Union Council viz-a-viz. Union Administration
(2) The Head of Offices is responsible for-
(i) all matters relating to the budget for the offices under his administrative control;
(ii) ensuring strict financial control;
(iii) ensuring observance of all relevant financial rules and regulations both by his own office and by sub-ordinate Disbursing Offices;
(iv) ensuring that the total expenditure is kept within the limits of authorized appropriation;
(v) ensuring that the funds allotted are spent on the activities for which the money was provided;
(vi) explaining to the Budget and Development Committee, any instance of excess or financial irregularity that may be brought to notice as a result of audit scrutiny or otherwise;
(vii) ensuring that adequate provisions exist for systematic internal checks to prevent and detect errors and irregularities in the financial proceedings of his subordinate offices;
(viii) ensuring that the internal controls are effectively applied;
(ix) guarding against waste and loss of public money;
(x) ensuring that satisfactory arrangements exist for systematic and proper
maintenance of office accounts and other ancillary record;
(xi) ensuring that the auditors are afforded all reasonable facilities in the discharge of their functions and furnished with full possible information for which they may ask;
(xii) ensuring that no such information or any books or other documents to which the Auditor General of Pakistan has a statutory right of access, is withheld; and (xiii) coordination with the Finance and Budget Officer.
(3) Where there is only one Union Secretary in a Union Administration he shall perform the functions of-
(i) All the three Secretaries of the Union Administration;
(ii) Finance and Budget Officer;
(iii) Collecting officer;
(iv) Drawing Disbursing officer; (v) Planning Officer; and (vi) Union Accountant.
(4) The flow of work may be adjusted accordingly where there is only one Union Secretary in the Union Administration.
5. Collecting Officer (CO).- (1) The functions of the Collecting Officer are-
(i) preparing the estimates of receipts under his jurisdiction;
(ii) all matters relating to estimation, realization, and deposits of receipts; and (iii) coordination with the concerned higher level officials.
(2) The Collecting Officer shall be designated as such by the respective Head of Offices for the offices under his administrative control.
6. Drawing and Disbursing Officer (DDO).- (1) The functions of the Drawing and Disbursing Officer are -
(i) preparation of the estimates of expenditure for the offices under his jurisdiction;
(ii) incurring of expenditure as per rules;
(iii) coordination with the concerned higher level officials; and (iv) monitoring his budget.
(2) The Drawing and Disbursing Officer shall be designated as such by the respective Head of Offices under his administrative control,
7. Planning Officer (PO).- (1) Planning Officer means one of the Union Secretaries designated by the Nazim.
(2) The functions of the Planning Officer are-
(i) overall planning of development works of the local government;
(ii) monitoring of development projects; and
(iii) consolidation of Annual Development Programme.
PART III
BUDGET CLASSIFICATION AND CALL LETTER
8. Budget- (1) The budget is a statement of receipts and expenditure during a financial year of a local government and thus reflects the local government policies, priorities, financial strategy and operational plans in financial terms.
(2) The Nazim shall ensure that the needs of the disadvantaged groups are reflected in the priorities and gender issues are adequately addressed.
9. Budget Classification.- (1) The expenditure shall be classified into Development and Current expenditure.
(2) The Development budget shall be divided into two parts, namely-
(i) Citizen Community Board Development budget; and
(ii) local government development (Non-Citizen Community Board) budget.
(3) The receipts shall be classified as follows:-
(i) major head;
(ii) minor head; and
(iii) detailed receipt head.
(4) Expenditure shall be classified as follows(i) functional classification; and (ii) object classification.
(5) Functional classification shall be as follows-
(i) major function; (ii) minor function; and (iii) detailed function.
(6) Object classification shall be as follows-
(i) major object; (ii) minor object; and (iii) detailed object.
(7) Deleted.
10. Public Account.- (1)  Every local government shall maintain a Public Account.
(2) The estimates relating to Public Account shall be prepared by the Finance and Budget Officer on receipt of the figures from the concerned offices.
(3) The withdrawals from the Public Account shall be for the purpose for which funds were deposited and strictly in accordance with approved budget, rules and regulations in this respect.
11. Budget Call Letter.- (1) The Budget Call Letter shall be finalized after consultation with the relevant stakeholders.
Explanation: The expression “stakeholders” include Councils, elected representatives, general public, women's organization, private sector, Citizen Community Boards, Non-Governmental Organizations, Community Based Organizations, and other organizations.
(2) The priorities identified by a Council shall be forwarded to the Nazims as under -
(i) the Council of the concerned Union Administration may provide their requirements to the Nazim; and
(ii) the Zila Council and Tehsil Councils may provide their requirements to Union Nazim relating to Union functions.
(3) The Finance and Budget Officer shall consolidate the information received from the stakeholders including the priorities identified by the Councils and the local government offices in the draft budget call letter and submit it to the Nazim for approval.
(4) After approval by the Nazim, the Finance and Budget Officer shall issue to each Head of Offices the Budget Call Letter, including the budget calendar.
(5) The Budget and Finance Officer shall issue the classification of projects and other guidelines to the Citizen Community Boards on approval of the budget call letter by the Nazim.
(6) Each Head of Offices shall prepare its budget in accordance with the Budget Call Letter approved by the Nazim.
(7) The timeframe provided in the budget calendar shall be followed by each office of the local government.
(8) Filled forms shall be submitted by the Drawing and Disbursing Officers, Collecting Officers and Heads of Offices in accordance with the timeframe specified in the budget calendar to the Finance and Budget Officer. 
PART IV
ESTIMATES OF RECEIPTS
12. Finance and Budget Officer to supply receipt Forms to Collecting Officers.- The
Finance and Budget Officer shall, each year along with the budget call letter, supply to the Collecting Officers Forms BDR-1 to 4 relating to receipts as provided in the First Schedule, in which the estimates of receipts for the coming financial year shall be prepared.
13. Instructions to Collecting Officers.- The Collecting Officers shall while preparing their estimates of receipts be guided by the following-
(i) estimates of receipts are prepared diligently and accurately;
(ii) in relation to revised estimates, shall take into consideration the actual receipts during the first eight months of the financial year and also consider the figures of the previous financial year;
(iii) all material reasons, facts and circumstances relied upon in adopting the figures for the Revised Estimates for the current financial year shall be recorded clearly;
(iv) the reasons for adopting the figures for the budget estimates of the coming financial year shall be clearly explained; and
(v) the receipts shall cover all sources including fiscal transfers from provincial government.
14. Revenue Base Review.- (1) In order to ascertain and realize the revenue potential of a local government, each Collecting Officer shall conduct a review of the revenue sources and the required information shall be prepared in Form BDR-3.
(2) The objections and suggestions from the public and vetting by the Government shall be obtained after the taxation proposals have been discussed by the Council while considering the Draft Budget presented by the Nazim in April each year.
(3) The time frame to be followed for finalizing the taxation proposals is specified in the budget calendar provided in the Second Schedule.
15. Collecting Officer to Forward Receipt Forms to Head of Offices.- After duly completing the receipt forms, the Collecting Officer shall sign the same and retain one copy for record in his office, and forward the rest to the Head of Offices. The explanatory notes to the receipt forms shall be provided in Form BDR-5.
16. Head Sof Offices to scrutinize and consolidate estimates.- (1) On receiving the estimates of receipts from the Collecting Officer, each Head of Offices concerned shall finalize and consolidate the figures furnished by his Collecting Officers.
(2) Each Head of Offices shall prepare a note explaining any differences between-
(i) the revised estimates proposed for the current financial year, and the budget estimates for the current financial year; and
(ii) the budget estimates proposed for the next financial year, and the revised estimates proposed for the current financial year.
(3) A copy of the duly completed forms and the explanatory note prepared in Form BDR-5 shall be forwarded to the Finance and Budget Officer.
17. Administrative responsibility for accuracy of Figures and Estimates.- The Heads of Offices and the Collecting Officers shall be responsible for the correctness of all figures supplied to the Finance and Budget Officer.
18. Consolidation of receipts by the Finance and Budget Officer.- Upon receipt by the Finance and Budget Officer of the estimates of receipts from the Heads of Offices, the Finance and Budget Officer shall consolidate such estimates. The estimates of receipts shall be incorporated in the budget documents and submitted to the Budget and Development Committee for finalization prior to its submission to the Council.
PART V
ESTIMATES OF CURRENT EXPENDITURE
19. Preparation of Estimates of Current expenditure.- (1) The estimates of Current Expenditure shall be prepared by Drawing and Disbursing Officers (DDOs) in accordance with the budget guidelines according to which directions may be provided by the respective Head of Offices.
(2) The estimates of expenditure shall be provided on the Forms BDC-1 to 7 relating to Current expenditure.
20. Instructions for preparation of estimates of Current expenditure.- The following guidelines shall be followed for purposes of determining the Estimates of Expenditure-
(i) provision for each expenditure shall be included therein under the appropriate function and object head;
(ii) provision for any foreseeable expenditure shall be included while ensuring that each provision is restricted to the absolute minimum necessary sum;
(iii) each Drawing and Disbursing Officer shall develop the most realistic and sound estimates;
(iv) the estimates for each financial year shall provide only for such expenditure as are to be actually paid during the next financial year;
(v) provision should not be made in the estimates for posts which it has been decided to leave unfilled;
(vi) a performance incentive bonus for employees shall be included in the Budget; and
(vii) the budget shall include provision for honoraria and allowances for Nazims, Naib Nazims and Councilors.
21. Submission of Estimates of expenditure by Drawing and Disbursing Officer to Head of Offices.- After completing the forms, the Drawing and Disbursing Officer (DDO) shall retain one copy for record in his office and forward the original together with an explanatory note on BDC-8 showing the reasons for his proposal to the Head of Offices.
22. Heads of Offices to consolidate expenditure estimates.- (1) Each Head of Office shall develop a plan according to the priorities laid down in the budget call letter for the respective offices under his administrative control.
(2) The plan referred to in sub-rule (1) shall include all technical requirements taking into account the weaknesses of the past gaps and the proposals with detailed workings including the following on Forms BSF 1 to BSF 3-
(i) areas where the community can and is likely to participate and the proposed classification of projects for Citizen Community Boards;
(ii) the state of facilities and services already available;
(iii) problems and issues relating to the implementation of the current year's budget;
(iv) activities proposed for the next year's Current budget;
(v) new activities proposed for the next year including staff requirements and establishment;
(vi) status of on-going development projects; and
(vii) proposed sectors and projects for the next year's development budget based on the technical assessment by the concerned offices.
(3) Upon receipt of expenditure estimates, the Head of Offices shall review and finalize the estimates of expenditure and then send the same to Finance and Budget Officer.
23. Consolidation of expenditure estimates.- (1) The Finance and Budget Officer shall consolidate the estimates received from each Head of Offices.
(2) The estimates shall be submitted to the Council as part of the budget documents after finalization by the Budget and Development Committee.
(3) The current expenditure shall include the new expenditure.
24. Other Statements.- The details of budget shall include – (i) Statement of investment if any as per Form BDO-1;
(ii) Statement of General Provident Fund as per Form BDO-2; and
(iii) Statement of outstanding liabilities and loans, if any, on Form BDO-5.
25. Calculations of Establishment Charges.- (1) Form BDO-3 shall be used for calculating the salaries of the officials.
(2) Form BDO-4 shall be used for calculating the allowances of the officials.
(3) Forms BDO-3 and BDO-4 shall be for the internal use of the offices and shall not be submitted with any of the budget documents.
26. Conditional Grants.- All conditional grants shall be budgeted and utilized in accordance with the conditions of the grant. 
PART VI
STATEMENT OF NEW EXPENDITURE (CURRENT BUDGET)
27. New expenditure.- (1) Expenditure on new activities shall include the recurring costs of the development projects to be completed in the next financial year and expenditure relating to new current activities. The expenditure is mainly on personnel and purchase of durable goods.
(2) The new expenditure shall be provided with the budget documents as a Statement of New Expenditure (SNE).
28. New Current expenditure Proposals.- (1) Each Drawing and Disbursing Officer shall for the next financial year send to the Head of Offices, all proposals involving new current expenditure along with their estimates in Forms BDC-1 to 7.
(2) An explanatory note justifying the new proposals shall be provided in Form BDC-8.
(3) The details of the recurring expenditure of the development projects to be completed during a budget year, shall also be communicated by the Drawing and Disbursing Officer (DDOs) to the concerned Head of Offices.
29. Instructions regarding new expenditure.- (1) The respective Drawing and Disbursing
Officer (DDO), while preparing any proposal for new current expenditure shall ensure that(i) all proposals specify the:
(a) number of required personnel;
(b) rates of remuneration; and
(c) duration of employment of any proposed officials.
(ii) all relevant revenue implications have been described, quantified and included in the estimates of receipts; and
(iii) detail of expenditure as “Purchase of Durable Goods” have been specified.
(2) Drawing and Disbursing Officers shall forward the estimates of new expenditure separately to the Head of Offices along with the current budget.
(3) In submitting proposals for new expenditure administrative difficulties and delays in sanctioning processes should always be borne in mind and not more should be recommended for provision in the budget than is likely to be incurred during the course of the financial year.
PART VII
DEVELOPMENT PROJECT PROCESSING
30. Development Projects.- Development projects are those which are undertaken through development budget and required to be prepared on the Form BDD-4.
31. Processing of development projects.- The development projects shall be processed as follows-
(i) identification of development project;
(ii) preparation of project outline by concerned Office;
(iii) preparation of detailed development project proposal;
(iv) preparation of technical sanction for development projects involving works;
(v) issuance of Administrative Approval and Technical Sanction; (vi) inclusion in Annual Development Programme; (vii) approval by Council.
32. Responsibilities of the Nazim relating to Development Planning.- Nazim shall-
(i) provide the vision and set the development priorities;
(ii) interact with the stakeholders to assess their needs;
(iii) encourage the Citizen Community Boards to participate in the development activities and ensure that the Citizen Community Board projects are given priority;
(iv) oversee the preparation of development project proposals;
(v) Review progress of development projects and ensure timely completion of development projects.
33. Identification of Development projects.- (1) The identification of development projects shall be through a bottom up planning system.
(2) The detailed procedures relating to identification, approval and implementation of projects of Citizen Community Boards registered with the Citizen Community Board Registration Authority (District Officer Registration) under District and Tehsil Budget Rules notified by the Government are provided in Part III of Volume II of these Rules.
(3) The project proposals received during the year from various stakeholders shall be scrutinized by the concerned Head of Offices.
(4) The Heads of offices shall submit the outline of new development project proposals to the Nazim through the Planning Officer for approval and further processing. The new development projects shall be based on the detailed plans prepared by the respective Head of Offices as specified in Rule 22.
34. Approval of Non-Citizen Community Board development projects by the Nazim.- (1) The Nazim shall review the outline of the new development project proposal received from the concerned office and give approval for the preparation of detailed development project proposals which have been cleared by the Nazim.
(2) The concerned office after receiving the approval by the Nazim shall initiate the process of preparing the detailed development project proposal on Form BDD-4.
(3) The detailed development project proposal on completion by Head of Offices shall be submitted to the Planning Officer.
(4) The Planning Officer shall frame a working paper on the basis of the information examining the financial, economic and environmental viability of each development project.
(5) A copy of the development project proposal approved by the Nazim (BDC) shall be submitted to the Council for information.
35. Administrative Approval for development projects other than Citizen Community Boards.- (1) After the Nazim has approved the development project proposal, the Finance and Budget Officer shall convey the Administrative Approval to all concerned.
(2) Only the development projects approved by the Nazim shall be considered for inclusion in the Annual Development Programme.
36. Revision in Development project Proposals other than Citizen Community Boards.- (1) The upward revision of cost, or a major change in the objective or scope of a development project shall require the approval of the Council.
(2) The revision within the cost approved by the Council shall be approved by the Nazim. However it shall be ensure that the objectives and scope are not altered.
37. Completion of on-going Development project other than Citizen Community Boards.- An on-going development project approved by the Council shall be funded and completed as approved.
38. Development projects involving works other than Citizen Community Boards.- (1) The development project proposal relating to works submitted to the Nazim for Administrative Approval shall be accompanied by a preliminary report, a rough cost estimate, preliminary plans, information to the site and other details as may be necessary to fully elucidate the proposals. The estimates and preliminary plans should be obtained from the concerned office dealing with works.
(2) For every work proposed to be carried out, except petty works and repairs a properly detailed estimate must be prepared for the sanction of the competent authority. This sanction is known as the “Technical Sanction” to the estimate. Such sanction shall only be accorded by the officials in accordance with the powers delegated to them.
(3) In cases in which it becomes apparent during the execution of the work the amount administratively approved or the amount of technical sanction shall be exceeded, the approval and approval of the Council shall be obtained. 
PART VIII
DEVELOPMENT BUDGET AND ANNUAL DEVELOPMENT PROGRAMME
39. Annual Development Programme.- (1) The Annual Development Programme shall be a compilation of the development projects including Citizen Community Board projects, approved by the Council as part of the budget.
(2) The Annual Development Programme shall be submitted as part of the budget documents.
40. Classification of Annual Development Programme.- (1) The Annual Development Programme shall classify projects by sector, function and geographic location.
(2) The Annual Development Programme shall indicate new development projects and on-going development projects separately. Development projects on which no expenditure has been incurred previously shall be termed “New” development projects. Development projects on which expenditure has been incurred in previous years shall be termed “On-going”.
41. Source of funding for Annual Development Programme.- (1) Main sources of funding the new development projects shall be-
(i) total receipts of the local government less current expenditure, on-going expenditure of development projects and other liabilities; and
(ii) financial assistance received by way of development grants from the Government.
(2) Twenty-five percent of the development budget shall be earmarked for execution through Citizen Community Boards (Citizen Community Boards). The Citizen Community Board (Citizen Community Board) projects shall be processed, included in the development budget and approved by the Council in accordance with Volume I and II of the Rules.
42. Phasing of Annual Development Programme.- (1) As far as possible development projects shall be completed within the financial year.
(2) In exceptional circumstances a project may be phased over two financial years.
43. Prioritizing Development Projects for Inclusion in the Annual Development Programme.- (1) For the Non-Citizen Community Board (local government initiated) development projects each Head of Offices shall select development projects for inclusion in the Annual Development Programme from the development projects pertaining to his offices and forward their details to the Planning Officer in Forms BDD-1 to 3. The development projects recommended by the Head of Offices shall be in line with the budget guidelines included in the Call letter and the detailed operational plans of the respective Offices under the administrative control of the Head of Offices.
(2) The procedure for ranking of the Citizen Community Board projects is explained in Part III of Volume II of the Rules.
44. Monitoring Progress of Development project Execution.- (1) Expenditure can be incurred only on development projects for which Administrative Approval and Technical sanction (for works) has been accorded and the development project has been included in the budget and has been approved by the Council.
(2) For development projects under execution, the executing agency shall send monthly progress reports in the prescribed Form BM-5 and BM-7 to the Planning Officer and Finance and Budget Officer, and the Monitoring Committee in the first week following each month.
(3) Complaints and suggestions of the public, Monitoring Committee and officials regarding development projects shall be submitted through the Planning Officer to the Nazim for necessary action.
45. Development project Completion.- On development project completion, a project handing over report shall be submitted by the concerned Head of Offices to the Planning Officer and a copy shall be provided to the Nazim, Finance and Budget Officer and to the Council each.
46. Post Completion.- Post completion evaluation of each development projects shall be undertaken jointly by the Planning Officer in collaboration with concerned Head of Offices and a report submitted to the Council.
PART X
BUDGET PRESENTATION TO THE COUNCIL
47. Budget Documents.- (1) The Finance and Budget Officer shall for the Council prepare the budget documents specified below -
(i) Budget speech of the Nazim;
(ii) Annual Budget Statement;
(iii) Budget Salient Features;
(iv) Estimates of Receipts;
(v) Demands for Grants (Current expenditure);
(vi) Demands for Grants (Development expenditure);
(vii) Statement of New Expenditure;
(viii) Annual Development Programme; and
(ix) Supplementary Budget for current year if required.
(2) The formats of the budget documents are provided in the First Schedule, while a brief description follows.
48. Budget Speech.- The Budget Speech of the Nazim shall include the main features of the budget.
49. Annual Budget Statement- (1) The Annual Budget Statement shall include details of receipts and expenditure. The following shall be included in the Annual Budget Statement (ABS)-
(i) Financial Abstract;
(ii) Details of Receipts;
(iii) Details of expenditure;
(iv) Details of Current expenditure by detailed function and major objects; (v) Details of Public Account Receipts and Disbursement; and (vi) Function-wise Development expenditure.
(2) The Annual Budget Statement shall be submitted on Form ABS.
50. Budget Salient Features (BSF).- (1) The Budget Salient Features shall provide a brief description of the main features of each office and also include performance targets, service delivery facilities, policies and plans of the various offices.
(2) The salient features of each office shall be provided in Form BSF-1.
(3) The performance targets shall be provided in Form BSF-2.
(4) The status of service delivery facilities shall be provided in Form BSF-3.
51. Estimates of Receipts.- (1) The estimates of receipts shall be prepared and consolidated pursuant to Part IV.
(2) The estimates of receipts and other details shall be provided on Forms BDR-1 to 5.
52. Demands for Grants (Current expenditure).- (1) The demand for grants of current expenditure shall include estimates of total current expenditure and shall be prepared pursuant to Part V of Volume I.
(2) The “Demand for Grants (Current expenditure)” and other details shall be provided in Forms BDC-1 to 8.
(3) Other forms may be developed by a local government for providing additional budgetary information.
53. Demands for Grants (Development expenditure).- (1) The demand for grants and appropriation for development shall include the estimate of on-going and new development projects including Citizen Community Board (Citizen Community Board) projects. It shall be prepared pursuant to Part VII, VIII and IX of Volume I.
(2) The “Demand for Grants (Development expenditure)” and other details shall be provided in Forms BDD-1 to 3.
54. Statement of New Expenditure.- (1) The estimates of new expenditure relating to current budget shall be provided separately as well, and prepared pursuant to Part V and VI of Volume I.
(2) The Schedules and explanatory notes relating to the “Statement of New Expenditure” shall be provided in Forms BDC-1 to 8.
55. The Annual Development Programme.- (1) The Annual Development Programme shall be formulated as prescribed in Part-VII, VIII and IX of Volume-I and include details of each development project. It shall be an explanatory document to the Demand for Grants ( Development ).
(2) The Annual development Program shall be provided in Form BDD3.
56. Supplementary Budget.- (1) A Supplementary Budget based on the Statement of Excess and Surrenders and Revised Estimates shall also be submitted along with the other budget documents if required.
(2) The supplementary budget shall be presented in the same form and manner as that of the annual budget.
57. Draft and Final Budget- (1) The Finance and Budget Officer after consolidating the budget estimates shall prepare a Draft Budget based on the preliminary estimates provided by the Government.
(2) The Draft Budget shall be discussed and finalized by the Budget and Development Committee.
(3) The budget based on the preliminary estimates as approved by the Nazim shall be presented to the Council for discussion as a Draft Budget.
(4) The recommendations of the Council on the Draft Budget shall be incorporated when the budget is being prepared and finalized on the basis of the final estimates provided by the Government.
(5) The budget based on the final estimates provided by the Government shall be presented by the Nazim to the Council for approval.
58. Presentation to the Council.- (1) The budget documents shall be laid before the Council for approval.
(2) The Council may refer the budget documents to the Budget Committee constituted by the Council. The Committee shall perform the following functions-
(i) scrutiny of receipts;
(ii) scrutiny of expenditure;
(iii) examination of new proposals for taxation; and (iv) scrutiny of proposed annual development programme.
(v) make recommendations to the council.
(1) No Demand for Grant shall be made to the Council except on the recommendation of the Nazim.
(2) The closing balance of the local government shall not be allowed to fall below 5% of the total receipts (excluding those of the public account) anticipated for the year. For the purpose of this Rule the investments if any made out of the local government fund shall be deemed to be a part of the closing balance.
(3) No lumpsum provisions shall be made in the budget the details of which cannot be explained.
(4) A budget shall not be approved by the Council if (i) the receipts do not match the proposed expenditure;
(ii) the ratio of development work and expenditure on establishment fall below the constraints as notified by the Government from time to time.
(5) (i) the proposed development expenditure in the estimates shall be at least 50% of the total proposed revenue expenditure of the year; and
(ii) where expenditure on development is less than 50% of the total proposed revenue expenditure of the year the development component shall increase, in equal successive increments over three years, from its current level so as to ensure a fifty percent development expenditure by the end of the said three years.
59. Schedule of Authorized Expenditure and Authentication by Nazim.- Following approval by the Council of the Annual Budget Statement in respect of the next financial year, the Finance and Budget Officer shall -
(i) prepare a Schedule of Authorized Expenditure;
(ii) procure the authentication of the Nazim for the Schedule mentioned in Sub-Rule (i) above;
(iii) Schedule of Authorized Expenditure shall be prepared in the same form as the Annual Budget Statement;
(iv) the Schedule authenticated by the Nazim shall be laid before the Council, but shall not be open to discussion or vote thereon; and
(v) The Schedule of Authorized Expenditure shall lapse at the end of the financial year. 
PART XI
COMMUNICATION AND DISTRIBUTION OF GRANTS
60. Communication of Schedule of Authorized Expenditure.- A copy of the authenticated Schedule of Authorized Expenditure shall be forwarded to the Union Accountant by the Union Nazim or the Finance and Budget Officer of the Union Administration as the case may be.
61. Communication of Grants to Drawing and Disbursing Officers (DDOs).- The Union Nazim being Head of the Office shall intimate the Union Secretary who has been designated as Drawing and Disbursement Officer about the grants approved in the Budget. The communication shall be completed by the second week of July.
62. Communication of Receipt targets to Collecting Officers.- The targets of receipts approved by the Council shall be forwarded by the Nazim or the Finance and Budget Officer as the case may be to the Union Secretaries and the Collecting Officers for its achievement by the close of year.
63. Communication to Government and other local governments in the district.- A copy of the budget documents shall be supplied to the Government, Provincial Finance Commission and Local Government Commission. A copy shall be provided to other local governments in the district if requested by them. 
PART XII
EXPENDITURE MANAGEMENT
64. Expenditure Management.- (1) Each local government shall-
(i) ensure that it develops effective means to implement the budget as passed by the council;
(ii) ensure that authorized budget allocations are expended in conformity with the Schedule of Authorized Expenditure;
(iii) if necessary, modify the budget to a changing environment, in accordance with the provisions of these Rules; and
(iv) efficiently and effectively manage the resources made available to the local government.
(2) Two elements are necessary before public money can be spent-
(i) there must be an appropriation of funds for the purpose; and
(ii) there must be sanction of an authority competent to sanction expenditure.
(3) Delay in payment of money due from a local government shall be avoided. The payment of all actual obligations shall be ascertained, provided for in the budget estimates, liquidated and recorded at the earliest possible date.
(4) No contracts shall be entered into by any authority, which has not been empowered to do so by the local government.
65. Responsibility of relevant local government Functionaries.- (1) The Heads of Offices shall be responsible for controlling and managing expenditure from the Grants placed at their disposal.
(2) Each Drawing and Disbursing Officer (DDO) shall be responsible for the expenditure actually incurred against the funds allotted to him. The expenditure shall be sanctioned in accordance with the delegation of Financial Power Rules.
(3) In case of any reduction in budget necessitated by lower than expected receipts the Nazim shall convene a meeting and decide the requisite reduction in respect of any one or more heads of expenditure, keeping in view the priorities set by the Council. Such revisions shall require approval of the Council. In case receipts exceed the estimations or additional grants or funding is received then a supplementary budget shall be presented to the Council prior to utilization of the additional funds.
(4) In order to keep total expenditure within the Grant, every Head of Offices shall be informed monthly by each Drawing and Disbursing Officer of-
(i) actual spending from the Grant or Grants placed at the disposal of any such subordinate Drawing and Disbursing Officer;
(ii) the extent of commitments that have been made but not paid for against such Grant or Grants; and
(iii) the extent of expenditure that is likely to be incurred during the remaining period of the financial year.
(5) Each Head of Offices shall review the expenditure position and take such measures as may be required to check the trend of any excessive expenditure.
66. Recording of disbursements by Drawing and Disbursing Officers (DDOs).- (1) Every Drawing and Disbursing Officer (DDO) shall maintain an appropriation register which shall include the commitments against the appropriations and a register of actual disbursements. The DDO shall also monitor the appropriations relating to establishment.
(2) When a bill is prepared for payment, the Drawing and Disbursing Officer (DDO) shall indicate complete accounts classification in respect of the proposed expenditure and the balance available in the detailed object head.
(3) The Drawing and Disbursing Officer (DDO) may maintain other registers as may be required to manage, control and monitor the budget.
(4) In case a Drawing and Disbursing Officer (DDO) receives confirmation from Head of Offices or any other source that a particular item of expenditure has been incorrectly classified, he shall immediately correct the accounts and send the same for information to the Union Accountant.
(5) A Drawing and Disbursing Officer shall not authorize any payment in excess of the funds placed at his disposal.
67. Reconciliation of expenditure.- (1) During the first week of each month, the respective Union Accountant shall provide for the previous month, a schedule showing the numbers, dates and amounts of vouchers paid during that month, and supply copy of each such schedule to the concerned Drawing and Disbursing Officer (DDO).
(2) Upon receipt of the schedule from the Union Accountant, the Drawing and
Disbursing Officer (DDO) shall-
(i) compare such schedule with the statement prepared by him; and
(ii) reconcile expenditure with Union Accountant by 10th day of every following month for the previous month.
(3) The respective Head of Offices, Drawing and Disbursing Officer (DDO) and the Union Accountant shall be jointly responsible for reconciling any differences and for correcting misclassifications or any other errors.
(4) In case the reconciliation statement of accounts are not prepared by the Union Accountant and provided to the Nazim before the 20th of the following month to which Accounts relate, no approval of the expenditure may be accorded by the Nazim with a view to maintain financial discipline.
68. Monthly expenditure Statement- (1) The Drawing and Disbursing Officer (DDO) shall provide a reconciled statement of expenditure not later than the 13th day of the month following the month to which the accounts relate, to the Head of Offices in Form BM-1.
69. Monthly Reports of expenditure.- (1) Each local government shall submit a monthly report to the respective Council relating to the expenditure incurred during the month by the local government.
(2) The monthly financial reports shall include the following BM Forms-
(i) BM-1 -  Monthly Statement of Current expenditure;
(ii) BM-2 - Monthly Reconciliation of Current expenditure;
(iii) BM-3 - Monthly Statement of Receipts;
(iv) BM-4 - Monthly Reconciliation of Receipts;
(v) BM-5 - Monthly Progress Report Development Programme, government Projects &
Citizen Community Boards (Citizen Community Boards);
(vi) BM-6 - Monthly Reconciliation of Development expenditure;
(vii) BM-7 - Monthly Report- Operationalization of Projects;
(viii) BM-8 - Service Delivery Targets;
(ix) BM-9 - Service Delivery Facilities Status;
(x) BM-10 - Establishment Status by Designation;
(xi) BM-11 - Monthly Statement of Re-appropriations of Funds; (xii) BM-12 - Statement of Supplementary Grants; and (xiii) BM-13 - Statement of Excesses and Surrenders.
70. Steps Required in Case of likelihood of Excess expenditure.- (1) In case a Grant is likely to be exceeded, the Head of Offices shall take immediate steps to prevent the excess expenditure by-
(i) ensuring strict control over the affected Grant; or
(ii) transferring funds under his powers of Re-appropriation; and
(iii) submitting as soon as the exigency arises, an application for Supplementary Grant.
(2) If funds cannot be provided through re-appropriations then a Supplementary Grant shall be prepared and got approved from the Council before the additional expenditure is incurred. The procedure for re-appropriations and Supplementary Grants are provided in Part XIV of Volume I.
71. Statement of Excesses and Surrenders.- (1) The Statement of Excesses and Surrenders shall be prepared in Form BM-13 by the Head of Offices after 8 months of the financial year.
(2) For purposes of completing Form BM-13, the Heads of Offices shall obtain the required information from the concerned Drawing and Disbursing Officers (DDOs).
(3) Annually, one Statement of Excesses and Surrenders shall be prepared and submitted by the Heads of Offices to the Finance and Budget Officer.
(4) The Statement of Excesses and Surrenders shall be completed on the basis of actual expenditure incurred during the first eight months of the financial year and keeping in view the expected expenditure in the remaining four months of the financial year.
(5) The Excesses and Surrenders shall form the basis for -
(i) preparing the revised estimates; and
(ii) formulating the demands for additional funds if required.
(6) The revised estimates shall also be used to form the basis of the following year budget estimates and for determining the estimated closing balance of the local government fund.
(7) The Heads of Offices shall submit together with the Statement of Excesses and Surrenders a note explaining the reasons for the excesses and surrenders.
(8) The Finance and Budget Officer shall consolidate the Statements of Excesses and Surrenders for approval by the Budget and Development Committee (BDC).
72. Revised Estimates and Supplementary Grant- (1) In addition to any revisions during the year every local government shall after 8 months of the financial year prepare revised estimates based on the Statement of Excesses and Surrenders to be finalized by the Budget and Development Committee in March.
(2) If additional funds, which cannot be met through re-appropriation are identified for the remaining four months a Supplementary Grant shall be submitted to the Council for approval along with the Draft Budget for the next financial year in April.
73. Distribution and Communication of Supplementary Grant- (1) Subsequent to approval by the Council and intimation by the Finance and Budget Officer of the Supplementary Grant, the Heads of Offices concerned shall distribute the Supplementary Grant and communicate the break-up of the Grant to Drawing and Disbursing Officers and the Union Accountant concerned.
(2) The Collecting Officer shall also be communicated the revised targets for receipt as approved by the Council.
74. Principal Accounting Officer (PAO).- (1) The Principal Accounting Officer for local governments shall be one of the Secretaries designated by the Nazim.
(2) The Principal Accounting Officer shall be responsible for resolving the Audit paras.
75. Accounts Committee of the Council.- (1) The Accounts Committee of the Council shall monitor the budget during the financial year.
(2) The Accounts Committee shall review the monthly financial reports including the accounts report submitted by the Union Accountant.
(3) The Accounts Committee shall especially focus on the reconciliation of expenditure.
(4) The Head of Offices shall be responsible to the Accounts Committee of the Council for issues relating to expenditure.
PART XIII
RECEIPT MANAGEMENT
76. Receipt Management.- (1) The primary obligation of the Collecting Officers shall be to ensure that all revenue due is claimed, realized and credited immediately into the local government fund under the proper receipt head.
(2) The Head of the Offices shall supervise and take corrective measures in respect of the activities of the Collecting Officers.
77. Monthly Statement of Receipts.- (1) The Collecting Officers shall furnish monthly reconciled statements of actual collections under the heads for which they are responsible to the Head of Offices in Forms BM-3 and BM-4 by 13th day of the month following the month to which the statement relates.
(2) The Head of Offices shall consolidate the figures received from different Collecting Officers and shall forward the same to the Finance and Budget Officer by the 16th day of the month following the month to which the statement relates.
78. Reconciliation of Receipts.- (1) The Collecting Officers shall reconcile his figures with the record maintained by the Union Accountant by the 10th day of the month following the month to which the statement relate.
(2) In order to enable the Head of Office to verify whether the amounts shown as realized in the statements have actually been realized and credited to the proper head of account, the Union Accountant concerned shall provide the Head of Office with statements confirming the actual amounts credited under the relevant receipt heads.
79. Prompt Deposit of Receipts.- (1) The receipts for a month shall be the figures of the receipts credited during that particular month.
(2) In case any money is realized in one month but not credited until the subsequent month except that relating to the last working day of a calendar month, the facts and circumstances shall be clearly stated in the monthly report in which the receipts were realized.
(3) The sanction of the competent authority is necessary for the remission of and abandonment of claims to revenue.
80. Rectification of Errors in recording of receipts.- (1) In case any error in recording of receipts is discovered the return shall be corrected and an intimation shall immediately be sent to the concerned Union Accountant for rectification.
(2) In the event of any error detected in the office of the Union Accountant, such office shall forward the details to the Collecting Officers.
81. Monthly Report of Receipts.- (1) Each local government shall submit a monthly report to the respective Council relating to the receipts received during the month.
(2) The monthly financial report relating to receipts shall include the following Forms (i) BM-3 - Monthly Statement of Receipts; and (ii) BM-4 - Monthly Reconciliation of Receipts.
82. Accounts Committee to Monitor Receipts.- (1) The Principal Accounting Officer (PAO) shall be responsible for resolving Audit paras relating to receipts.
PART XIV
RE-APPROPRIATIONS AND SUPPLEMENTARY GRANTS
83. Expenditure not provided for in the Schedule of Authorized Expenditure.- In the event that unavoidable and unforeseen circumstances arise during the course of any particular financial year that requires incurring excess expenditure or expenditure not contemplated in the Schedule of Authorized Expenditure, such expenditure shall be made available through, re-appropriation or supplementary grants or both.
84. Re-appropriations.- (1) Re-appropriation means the transfer of savings in a unit of appropriation to meet excess expenditure anticipated under another unit of appropriation.
(2) The officials shall re-appropriate in accordance with the re-appropriation powers delegated by the respective Council to them.
85. Procedure for Re-appropriation.- (1) If any officer is competent to sanction a reappropriation, such officer may do so pursuant to the powers delegated to him by the Council. A copy of the order sanctioning any re-appropriation shall be communicated to the Head of Offices, Finance and Budget Officer and the Union Accountant.
(2) A request for re-appropriation shall be prepared by the concerned Drawing and Disbursing Officer. If it involves different Drawing and Disbursing Officers then the Head of offices shall process the re-appropriation.
(3) If the re-appropriation involves two different grants then the Union Secretary concerned or Finance and Budget Officer as the case may be shall be responsible for processing the re-appropriation.
(4) In case the re-appropriation is beyond the limit set by the Council, it shall require the approval of the Council. In such cases the request for re-appropriation of funds shall be prepared by the Head of Offices and forwarded to the Council for approval.
86. Supplementary Grants.- (1) In case that a Head of Offices considers that the need for additional funds has arisen for which no re-appropriation is available. He shall submit a proposal for Supplementary Grant to the Council.
(2) The proposal shall be accompanied by an explanatory note justifying the Supplementary Grant.
87. The Supplementary Budget Statement- (1) Requests for Supplementary Grant during the financial year shall be consolidated by the concerned Union Secretary or the Finance and Budget Officer (FBO) as the case may be, in the form of a Supplementary Budget Statement. The same details as in the annual budget shall be provided to the Council.
(2) The form and manner in which the Supplementary Budget Statement is presented to the Council shall be the same as that of the Annual Budget Statement.
(3) The Accounts Committee of the Council shall monitor the receipts during the financial year.
(4) The Accounts Committee shall especially focus on the reconciliation of receipts and realization of monthly targets.
(5) The Head of Offices shall be responsible to the Accounts Committee of the Council for issues relating to receipts.
PART XV
LINKAGE WITH THE GOVERNMENT AND FISCAL TRANSFERS
88. Local government Fund.- The resources made available to the local government through fiscal transfers from the Provincial Government shall comprise share of receipts of the concerned local government and shall constitute a part of the local government Fund.
89. Distribution of Funds to local government by Government- The share of each local government shall be in accordance with the Award notified by the Governor.
90. Communication of Preliminary Figures of local government share.- The Finance Department, Government of the Punjab shall communicate the preliminary estimates of the respective local government share by the first week of March each year.
91. Communication of Final Figures of local government share.- The Provincial Finance Department shall communicate the final estimates of local government share in June each year.
92. Monthly transfer of local government share.- The Finance Department shall disburse the local government share directly to the local government on monthly basis.
93. Submission of Reports.- (1) The concerned District Accounts Officers (DAOs) shall send monthly accounts to the Government of all the local governments in the district. The Union Accountant of the Union Administration shall submit reconciled accounts to the concerned District Accounts Officers well in time to meet the above deadline.
(2) The local governments shall provide regular and special reports on any aspect of the local government finances, as and when such reports may be required by the Government. 
PART XVI
PERFORMANCE TARGETS
94. Performance Targets.- (1) In order to improve efficiency and effectiveness of service delivery, the local government shall provide performance targets along with the financial figures in the budget. The performance targets may be provided for inputs, outputs or outcome.
(2) Performance targets shall be(i) clear, precise and unambiguous; (ii) relevant; and (iii) verifiable.
(3) The Union Nazim shall finalize the intended performance targets relating to service delivery etc. with reference to financial implications for the next financial year. Such performance targets shall be prepared on Forms BSF-2 and BSF-3.
(4) The status of Performance Targets achieved shall be provided regularly during the year through Forms BM-8 and BM-9.
PART XVII
MISCELLANEOUS
95. Interpretation of Rules.- In case of any ambiguity or inconsistency arising in the interpretation or construction of the provisions of these Rules, the Government shall resolve such ambiguity or inconsistency.
96. Repeal and Saving.-
(i) Local Government (Budget) Rules, 2001 are hereby repealed with effect from the date of coming into force of these rules.
(ii) Save as otherwise specifically provided in these rules, all actions taken in pursuance of Local Government (Budget) Rules, 2001 and not inconsistent with any provision of these rules or the ordinance shall have effect as if those were taken under these rules.

   

FIRST SCHEDULE
FORMS 
ANNUAL BUDGET STATEMENT (ABS) 
FORM ABS
ANNUAL BUDGET STATEMENT
[ See Rule  49]
1. Financial Abstract
A. Local government fund
Rupees
Description Last Year Actuals Budget Estimates (Current Year) Revised Estimates (Current Year) Budget Estimates ( Next Year )
Opening Balance on July 1st
Receipts
Current Expenditure
Development Expenditure
Total Expenditure
Closing Balance on June 30th
B: Public Account
Rupees
Description Last Year Actuals Budget Estimates (Current Year) Revised Estimates (Current Year) Budget Estimates ( Next Year )
Opening Balance on July 1st
Receipts
Disbursement
Closing Balance on June 30th
Note: Anticipated cash balance as on July 1st to be determined after finalizing the revised estimates.
2. Details of Receipts

3. Details of Current Expenditure

4. Details of Current Expenditure by Detailed Function and Major Object

5. Function Wise Development Expenditure
Rupees
Detailed Function Last Year Actuals Budget Estimates (Current Year) Revised Estimates (Current Year) Budget Estimates       (Next Year)


Total
6. Details of Public Account Receipts and Disbursements


BUDGET SALIENT FEATURES (BSF) 

POLICIES AND PROPOSED ACTIVITIES
[ See Rules 22 and  50]
SERVICE DELIVERY PERFORMANCE TARGETS
[ See Rules 22, 50 and  94]
SERVICE DELIVERY FACILITIES STATUS
[ See Rules 22, 50 and  94]
Name of Local Government _________ Grant # ____________________
Type of Facility **Expected Status On 1st July Current Year Planned During The Budget Year
Operational Closed Under Construction Closed To Be
Made Operational
(from Column 3) Existing Under Con stru ctio n
To
Be
Co mpl eted
( from Column 4  ) New Construction
To
Be
Initi ated
(as planned in the
Annual
Development
Programme)
1 2 3 4 5 6 7 8





** Note: Expected as budget is prepared in March.
Closed means facility permanently closed.

BUDGET DETAILS - RECEIPTS (BDR) 
ESTIMATES OF RECEIPTS (FY20__)
[ See Rules 12 and  51]
Name of Local Government: _____________________________
Rupees
1 2 3 4 5 6 7
Major/Minor Detailed Head Description Actuals of last year Budget
Estimates of the current year Actual collection in the first eight months of current financial year Revised Estimates for the current year Budget Estimates for next year






Total
Note: Form BDR-1 is to be filled by each Collecting Officer.
MONTHLY TARGETS OF RECEIPTS (FY20__)
[ See Rules 12 and  51]
SCHEDULE OF TAXES
[ See Rules 12, 14 and  51]
Name of Local Government ___________________
Rupees
Sr.
No Major/Minor Detailed
Receipt Head Description of Receipt Rate for the
current
year Base of the current
year Estimates of receipts for
current
year Rate proposed
for the next year Base proposed for the next year Estimates of receipts for next year Mode of Recovery % change
= Column
(9-
8) X100 / 8
Existing New Total
1 2 3 4 5 6=4x5 7 8 9=7x8 10=7 x 8 11= Col 9 or 10 12 13





Note: Base means the number of units on which the estimates are based.
Form is to be filled by each Collecting Officer.
Mode of Recovery means by contractor, by own office etc.

FORM - BDR-4
SCHEDULE OF ARREARS
[ See Rules 12 and  51]
Name of Local Government __________________
FORM BDR-5
JUSTIFICATION / EXPLANATION FOR BUDGET ESTIMATES
( FOR RECEIPTS )
[ See Rules 15, 16 and  51]
Name Of Local Government _____________________ Collecting Officer___________________________
BUDGET DETAILS - CURRENT EXPENDITURE (BDC)
EXISTING, NEW AND TOTAL 
FORM BDC-1
ABSTRACT OF DEMAND FOR GRANTS (CURRENT)
[ See Rules 19, 28, 52 and  54] 
Existing expenditure        Rupees
Grant # Last Year Name of
G r a n t Budget Estimates (Current Year) Revised Estimat (Current Year) es Budget Estimates ( Next Year )
Charged Voted Total Charged Voted Total Charged Voted Total


New expenditure        Rupees
Grant # Last Year Name of
G r a n t Budget Estimates (Current Year) Revised Estimat (Current Year) es Budget Estimates ( Next Year )
Charged Voted Total Charged Voted Total Charged Voted Total


Total expenditure        Rupees
Grant # Last Year Name of
G r a n t Budget Estimates (Current Year) Revised Estimat (Current Year) es Budget Estimates ( Next Year )
Charged Voted Total Charged Voted Total Charged Voted Total



ESTABLISHMENT STRENGTH BY FUNCTION
[ See Rules 19, 28, 52 and  54] Name of Local Government: ____________________ Grant No. ____________________________________
F = Female and M = Male.
ESTABLISHMENT BUDGET BY FUNCTION AND DESIGNATION
[ See Rules 19, 28, 52 and  54]
Rupees
Sr. # Designation BPS Strength/# of Posts Establishment Charges Leave Salary Allowances Pension Total
Male Female Total




ESTABLISHMENT STRENGTH BY DESIGNATION
[ See Rules 19, 28, 52 and  54]
Name of local government_________________________
ESTABLISHMENT BUDGET BY DESIGNATION
[ See Rules 19, 28, 52 and  54]
Name of local government_________________________
Rupees
Sr. # Designation BPS Strength/# of Posts Establishment Charges Leave Salary Allowances Pension Total
Males Female Total





FORM BDC-6
ESTIMATES OF DEMAND FOR GRANTS (CURRENT EXPENDITURE) (FY20__)
[ See Rules 19, 28, 52 and  54]
Name of Local Government: _____________ Detailed Function Code:_________________ Grant No.___________
                  Rupees
1 2 3 4 5 6
Major/ Minor/
Detailed Object &
Description Actuals of the last year Budget
Estimates of the current year Actual of first 8 months of current financial year Revised
Estimates of the current year Budget Estimates proposed for next year




Total
Note: Form BDC -6 to be filled by each DDO.
      To Be Prepared Separately For new expenditure.
Charged/Voted/total expenditure to be shown separately.
FORM BDC-7
DRAWING & DISBURSING OFFICERS WISE BUDGET DISTRBUTION
[ See Rule 19, 28, 52 and  54]
Name of Local Government ______________________Grant No._____________________________________

FORM BDC-8
JUSTIFICATION / EXPLANATION FOR BUDGET ESTIMATES
( FOR EXPENDITURES )
[ See Rules 21, 28, 52 and  54]
Name of Local Government _____________________ Detailed Function Code _________________________
Grant # _____________________________________

BUDGET DETAILS DEVELOPMENT (BDD) 
FORM BDD-1
ABSTRACT OF
DEMAND FOR GRANTS (DEVELOPMENT)
[ See Rules 43 and  53]
Rupees
Grant # Grant Last Year Budget Estimates (Current Year) Revised Estimates (Current Year) Budget Estimates ( Next Year )
On-Going New Total On- New Total On- New Total




Total
FORM BDD-2
ESTIMATES OF DEMAND FOR GRANTS (DEVELOPMENT) (FY20__)
[ See Rules 43 and  53]
Name of Local Government:_____________ Detailed Function Code:_________ Grant No.___________
Rupees
1 2 3 4 5 6 7
Scheme Code/ Name / Location Cost of
Scheme Actuals upto last year Budget
Estimates of the current year Actual of first
8 months of current financial year Revised
Estimates of the current year Budget
Estimates proposed for
next year



Total
Note: To be filled by each Head of Office.
To be prepared separately ongoing, new and total.
FORM BDD-3
ANNUAL DEVELOPMENT PROGRAMME - LOCAL GOVERNMENT PROJECTS AND CCBS
[ See Rule 43, 53 and  55]
Name of Local Government _____________________ Grant # _______________________________________

FORM BDD-4
PROJECT PROPOSAL
[ See Rules 30,  34]
I. Name of Project
1. Name of Project __________________
2. Project Code _____________________
II. Implementation Arrangement for the Project
1. Sponsoring Agency
2. Executing Agency
3. Implementing Agency after Completion
4. Indicate the Capacity (personnel etc.) to implement the current proposal and the capacity to manage it after completion.
III. Proposed Project Profile
1. Commencement Date of Project ___________________________
2. Completion Date of Project _______________________________
3. Location/Geographic Area Covered by the Project _____________ 4. Main Sector/Sub-sector __________________________________
5. Provide a brief analysis of the Current situation (issues/problems/on-going efforts) in the sector/sub-sector? 6. Main Description and Objectives  (What does the project aim to do and achieve?) ______________
7. Please indicate how the environmental/poverty aspects of the project have been taken into account.
8. Provide details of:
- related facilities providing similar services
- institutions performing similar activities
- similar projects.
IV. Project Activities
A ( Inputs/Outputs/ Work Plan )
Sr. No Activity Start Date Completion Date Targets Units


Provide Details/Explanation of Work Plan on Separate sheet if required.
B. Project Beneficiaries
Type Of Benefit Male Female Total


C. Other Benefits

V. Community Participation Component in the Project
a) How was the community (Men and Women) involved in need identification/preparation of project proposal?
b) How do you propose to involve the community (Men and Women) in project implementation?
c) How will the community (Men and Women) be involved after completion of this project?
VI. Project Management
How will you manage the workplan and carry out monitoring of the Project.  --------------------------------------------------------------------------------------------------------------
Explain the system for keeping record and reporting of information.
--------------------------------------------------------------------------------------------------------------
VII. Financial Summary of Project
a. Anticipated sources of funding ……………………………………..
b. Total Cost of Project                                            
Development Costs/One Time Cost                              ------------------------------------------Yearly recurrent cost after completion of project     -------------------------------------------
        Salary                                                                    ------------------------------------------        Non-salary                                                            -------------------------------------------
c. Sources of funding of recurring cost
VIII. Detailed Costs of the Project
A. Development Cost
Sr. # Item Description Costs (Rupees)
Year 1 Year 2 Total



B. Annual Recurring Cost after Completion of project Grant #___________________ Detailed Function Code ____________
Rupees
Sr. # Major/Minor Detailed Major/Minor Detailed Total
 
C. Staffing Details after Completion of Project

IX.  Estimated Revenues of the Project if any
Rupees
Sr. No. Major/Minor Detailed Receipt Head Total



Total
Note: Show detailed calculations on a separate sheet
X Proposed Progress Reporting Schedule
Sr. No. Name / Details Of Report Date / Frequency  Of Submission


XI Indicate the risk involved in the project.
XII Project Preparation/Approval
Prepared by ___________________ Date ___________________
Checked by ___________________ Date ___________________
Approved by __________________ Date ___________________
Administrative Approval by ___________________ Date ___________________
Technical Sanction by __________________ Date ___________________ 
BUDGET DETAILS - OTHER (BDO) 

STATEMENT OF INVESTMENT
[ See Rule  24]
Rupees

STATEMENT OF GENERAL PROVIDENT FUND
[ See Rule  24]
  
[ See Rule  25]
SCHEDULE OF ESTABLISHMENT
CALCULATION OF PAY OF OFFICERS/ OTHER STAFF (FY20__)
Name of Local Government _____________________Grant # _____________________________________
Detailed Function Code _________________________Name of DDO __________________________________
Rupees
1 2 3 4 5 6 7 8 9 10
Sr.
No Name Post /
Designation Basic Pay Scale Pay on 1st
July of the current
financial year Increment added
during the current
financial year Pay on 1 st
July of next financial year Amount for first
Six months (6
x col.7) Increment due in December in next financial year Total Provision Col. 8+9C
A B C Male Female
Increment Amount Pay on 1st January Amount
for last six months (6 x col.8b)







Total
Note: Sub-total by designation.
Existing and vacant positions budgeted to be shown separately.
To be filled by Each DDO. Not to be submitted with the Budget.

FORM BDO-4
[ See Rule  25]
SCHEDULE OF ESTABLISHMENT
CALCULATION OF ALLOWANCES (FY20__)
Name of Local Government: _____________________________ Detailed Function Code ______________________
Grant No. ________________________Name of DDO_________________________
FORM BDO-5
STATEMENT OF LOANS
[ See Rule  24] 
BUDGET MANAGEMENT (BM) 

MONTHLY STATEMENT OF CURRENT EXPENDITURE (FY20__)
[ See Rules 69 and  68]
Name of Local Government ______________ Detailed Function Code ____________________
Month _______ Grant # ________________
Rupees
Detailed Object Description Budget Grant at the start of the month Addition
/Reduction during the month Budget
Grant at end of month Total expenditure
upto previous month Expenditure during the month Total expenditure to date Balance remaining ( col.5–  9)
Actual Actual Total
1 2 3 4 5 6 7 8 9



Note: Form BM-1 to be filled by each DDO.
FORM BM-2
MONTHLY RECONCILIATION OF CURRENT EXPENDITURE (FY20__)
[ See Rule  69]
MONTHLY STATEMENT OF RECEIPTS  (FY20__)
[ See Rules 69, 77 and  81]
Name of Local Government ________________ Month _______________

MONTHLY RECONCILIATION OF RECEIPTS (FY20__)
[ See Rules 69, 77 and  81]
Name of Local Government ______________ Month ________________
MONTHLY PROGRESS REPORT DEVELOPMENT PROGRAMME - GOVERNMENT PROJECTS & CITIZEN COMMUNITY BOARDS ( CCBs )
[ See Rules 44 and  69]
Name of Local Government _____________________ Name of Office ________________________
Grant # ____________________________________ Month_________________________
Detailed Function Code _______________
MONTHLY RECONCILIATION OF DEVELOPMENT EXPENDITURE (FY20__)
[ See Rule  69]
Name of Local Government: ______________ Name of Office: _______ Detailed Function Code: ______
MONTHLY REPORT- OPERATIONALIZATION OF SCHEMES
[ See Rules 44 and  69]
SERVICE DELIVERY TARGETS
[ See Rules 69 and  94]
Grant # ____________________________ Name of Local Government _________________
SERVICE DELIVERY FACILITIES STATUS
[ See Rules 69 and  94]
Status on Beginning of Month Actual during the Month Status at end of Month
 

Type of Facility Operational Closed Under Construction Closed To Be
Made
Operational
(from Column 3) Existing Facilities
P r o p o s e
d
T
o
B
e
C l o s e
d ( f r
o
m

C o l u
m n
2
) Under Construction
To
Be
Co mp lete d
( from Column 4  ) New
(as planned in the Annual
Development
Programme) Operational Closed Under Construction



ESTABLISHMENT STATUS BY DESIGNATION
[ See Rules  69]
Name of Local Government _____________ Month _____________________
Sr. # Designation BPS Beginning of Month During Month End of Month
Sanctioned Filled Sanctioned Recruited Sanctioned Filled Vacant
M F M OR F T M F T M F T M F T M F T



MONTHLY STATEMENT OF RE-APPROPRIATION OF FUNDS ( FY20__ )
[ See Rule  69]
Name of Local Government: _______________________ Month ______________________

STATEMENT OF SUPPLEMENTARY GRANT ( FY20__ )
[ See Rule  69]
Name of Local Government:____________ Grant No. ____________________
Month ______________________________ Function Code _____________________
A. Current Expenditure
Rupees
Detailed Object B.E. for current year Budget at start of
month Supplementary Amount Budget at end of month


B: For Development Expenditure
Rupees
Name of Scheme B.E. for current year Budget at start of
month Supplementary Amount Budget at end of month


STATEMENT OF EXCESSES AND SURRENDERS (REVISED ESTIMATES) (FY20__)
[ See Rules 69 and  71]
Name of Local Government: ______________ Detailed Function Code: __________________ Grant # ________________________
Rupees
1 2 3 4 5 6 7 8 9
Detailed Object Description Original Appropriation Modified Grant Actuals of the first 8 months of the
current financial year (CFY) Anticipated expenditure for the last 4 months of
CFY Revised Estimates for CFY
( col.5+col. 6) Surrenders
(Col.4 – col.7) Excesses
( Col.7 – col.  4)






Note: Form BM-13 to be filled by each DDO.
From BM-13 to be prepared after 8 months of financial year.

SECOND SCHEDULE BUDGET CALENDAR – LOCAL GOVERNMENT
BUDGET CALENDAR - DEVELOPMENT BUDGET
[ See Rule 3, 11, and  14]
1. Processing of Development Schemes
Sr. # Activity Target Date
1 Processing of a Development Scheme - Government August - January
1.1 Submission of schemes by Councils and other Stakeholders etc.
1.2 Review of proposals by concerned offices
1.3 Approval of Development Committee to prepare project proposal
1.4 Preparation of project proposal by concerned offices
1.5 Administrative Approval of project proposal by Development Committee
1.6 Preparation of detailed estimates and accordance of Technical sanction
1.7 Inclusion of Development Projects in Annual Development Programme and submission with Draft Budget April
1.8 Approval of Budget by Council June
1.9 Implementation of projects by executing agencies July
2. Budget Calendar - Current and Development
Sr. # Activity Target Date
1 Issue Call letter and guidelines to concerned offices. September
2 i) Submission of Schemes by CCBs.
ii) Submission of prioritized list of schemes by concerned offices along with Administrative Approval /technical sanction to Development Committee for inclusion in ADP. 1st March
3 i) Excesses and Surrenders Statement ii) Revised Estimates and Supplementary Budget if required. iii) Statement of New Expenditure iv) Consolidation of draft Budget (current and Development) for next financial year.
Finalization by Budget and Development Committee. March
4 Submission of draft Budget to Council based on initial estimates provided by the Provincial Government. 1st April
5 Review of Draft Budget by Council. April
6 Input from Government and Public on the proposals agreed by the Council. 1st May to 1st June
7 Revisions and Changes by Head of Offices and Finalization by Budget and Development Committee. May - June
8 Submission of final Budget to Council based on final estimates provided by the Provincial Government. June
9 Approval of Final Budget by Council. June
10 Communications of Current Budget Grants to concerned Offices and Accounts Offices. July
11 Final Accounts previous year. October
3. Time Frame for Taxation Proposal
The timeframe to be followed for finalizing the taxation proposals is as follows:
i) inclusion of draft taxation proposal in the draft budget in March.
ii) discussion on taxation proposal by Council in April. iii) proposal sent to Government for vetting by May 1st after incorporating the decisions of the Council.
iv) proposal published in the newspaper for obtaining public views by May 1st.
v) The vetting by the Government and objections and suggestions from the public received by 1st June.
vi) taxation proposals included in the budget submitted to the Council for approval in June.