Presentation on Local Government Ordinance 2001 December 06, 2004

Preamble  National Policy – 7 point Agenda on October 17, 2004  Establishment of National Reconstruction Bureau – November 18, 1999  Strategic Objective – Reconstruction of state institutions to establish genuine and sustainable democracy for durable good governance for an irreversible transfer of power to the people of Pakistan.  9 Field of focus for NRB  Devolution of Power - Local Government Ordinance August 14, 2001  Empowerment Targets: D1Devolution of Political Power – political leadership at three tiers D2Decentralization of Administrative Authority – shift from province to district D3Deconcentration of Management Function – separation of executive and magistracy, investigation and prosecution, group of offices D4Diffusion of Power- Authority Nexus – DCO, EDOs, DPO, Zila/ T/ UC Councils, Monitoring Committees, reconciliatory courts, DPSC D5Distribution of Resources – formula based fiscal distribution through FCs

Local Government System Political StructureAdministrative Structure Zila Council District Nazim Tehsil/ Town Council Tehsil/ Town Nazim Union Council Union Nazim District Administration DCO - EDO – DOsEDO DPO/ DPSC/ Ombudsmen Tehsil / Town Municipal Admn. TMO - TIS, TOP, TOF, TMR Union Administration 3 Union Secretaries Monitoring Committees Monitoring Committees Musalihat Anjuman Monitoring Committees Monitoring Mechanism Village/ Neighborhood Chairman Monitoring Committees Citizen Community Boards (CCBs) Monitoring Committees

Citizen Community Board (CCB) In every local area, a group of non elected citizens, not less than 25, may through voluntary, proactive and self help initiatives, set up any number of CCBs, provided that grants are available subject to the provision of Section 119 of the Ordinance. The purpose of establishment of a CCB include inter alia:  Energizing community for development in service delivery  Development & management of new or existing public facility  Identification of municipal/ development need  Mobilization of stakeholders for community involvement in improvement and maintenance of facilities, welfare of destitute, establishment of farming, marketing and consumer cooperatives  Reinforcing the capacity of monitoring committee at the behest of the concerned council

Rules of Business 1. No minor person, of unsound mind, has applied to be adjudicated as an insolvent & application is pending, undercharged solvent or defaulter under law cannot become a member of CCB. 2. Shall be registered with registration authority and carry out its functions in accordance with the prescribed rules. 3. Shall a general body of its members who shall elect a Chairman, Executive Committee and a Secretary of the Board with a two years terms extendable through selection for a similar term or terms by the general body. 4. May raise funds through voluntary contributions, gifts, donations, grants, and endowments for its declared purposes without compromising the largest interest of the community. 5. May also receive project-based cost sharing support from any local government in accordance with the provision of Ordinance.

LG Ordinance 2001: Section 109 Part (5): The development budget shall be prioritized in accordance with the bottom-up planning system as laid down in Section 119 of the Ordinance provided that: a. not less than 25% of the development budget shall be set apart for utilization in accordance with the provisions of Section 119 and a. the amount referred to in clause (a) which remains unspent shall be credited under the same head in the following year’s budget in addition to the fresh allocation under the said clause for that year.

LG Ordinance 2001: Section 119 Bottom up planning and ownership incentive system: (1) The respective local government shall lay down and announce the classification of development schemes to be undertaken exclusively under the provision of this section. (2) A local government may grant to the CCB within its local area, up to 80% of the budgeted amount of an approved development scheme, in the manner prescribed, provided that a scheme shall be deemed to be an approved scheme if: i.the prescribed departmental procedures estimating the cost of the scheme has been followed; ii.the estimating officer certifies that the scheme meets the requirement laid down by law; iii.The CCB has deposited its share of the cost of the development scheme with the concerned local government and; iv.The complete departmental estimates and the proof of deposit of the contribution of CCB are attached.

LG Ordinance 2001: Section 119 (3) The grant referred in sub section (2) shall be spent from the reserved 25% of the annual development budget as provided in section 109; (4) A cut off date for submission of all schemes proposed by CCBs shall be announced by the local government concerned before the presentation of its budget; (5) The respective local government shall authorize an official to draw up a statement specifying the schemes submitted by the cut off date specified in sub section (4) by classification including the total amount of contribution for a particular classification of schemes; statement (6) A second statement shall determine contribution for a particular classification of schemes as a ratio of total contribution for all schemes submitted with a particular local government for that year and the statement shall be used to determine amounts of allocations for a classification of schemes from the budget reserved for the purpose; statement

LG Ordinance 2001: Section 119 (7) A third statement shall be drawn up which shall identify the number of schemes submitted in a particular classification, beginning with the scheme containing the highest contribution by the CCB in a classification until all schemes in the classification are selected or the funds allocated for that particular classification in the amount determined in sub section (6) are exhausted. statement (8) The 25% funds of CCBs under section 109 shall be communicated to the authorized officer under sub section 5 to EDO (F&P) for a District Government, a TO/ TnO for TMA/ TnMA or a Union Secretary in charge of finance for a Union Administration; (9) This statement shall be approved by simple majority of the members of the respective council in a budget session.

Assignment CCB Project CCB Share (% of total CCB Project on Ranking basis) CCB Chare PKR Project 1 55%35,000 Project 2 40%42,000 Project 3 25%45,000 Project 4 20%13,000 Total for Classification of vocational education 135,000 There are 04 CCBs project proposals related to vocational education submitted for LG funding as per details given below. If the Council has a CCBs annual budget of PKR 450,000, how many of these projects can be funded out of the allocation for vocational education assuming that 60% of total budget has been earmarked for this sector ?