Serious flaws found in district level budgetary process

• CPDI, CNBA study identifies flaws in budget-making process at district level
• Study claims majority of Punjab’s district governments prepared budgets without public consultation due to absence of elected local government system
• Survey shows only 14 districts out of 36 issued budget call letters (BCL) before deadline, only in 11 districts’ DDOs submitted expenditure estimates on time

Centre for Peace and Development Initiative (CPDI), in collaboration with Citizens Network for Budget Accountability (CNBA), has carried out an extensive survey in all 36 districts of Punjab and found several lacuna’s and flaws in the budget-making process at grassroots level, affecting performance of district as well as town administrations.

The survey titled “A Study on Budget Making Process at District Level in Punjab (2014-15)” identified loopholes and depressing trends in preparing the annual fiscal plan, which is an important tool to improve efficiency and carry out development projects, for district governments.

Sharing details of the study, CPDI Programme Manager Syed Kausar Abbas said it was an attempt to analyse the budget-making process at district level and provide concrete policy recommendations to achieve the full potential of public spending to achieve poverty reduction and growth objectives.

In the survey, he said that the budget-making process was analysed keeping in view the Punjab District Government and Tehsil Municipal Administration Budget Rules, 2003. These rules have laid out in clear terms the procedures for the formation and approval of budgets at the district level.

Abbas said that a majority of the district governments in Punjab prepared their annual budgets without public consultation and following rules and regulations due to the absence of the elected local government system.

The report covered the working of district governments in 36 districts and said poor performance of the local governments depicted a lack of political oversight.

Abbas said the local government elections were the only solution to increase the public participation in the budget-making process.

The report declared transparent, accountable and rule-based government as the key prerequisite for a well-functioning democracy.

The CPDI programme manager said that the survey results showed very depressing trends, adding that only 14 districts issued the budget call letters (BCL) before October 31, 2013, though according to the budget rules it should be sent by end-September of each year.

Only in 11 districts, all the drawing and disbursement officers (DDOs) submitted the estimates of expenditure on time. Similarly, the collecting officers (COs) of only eight districts, out of the 36, prepared and submitted the estimates of receipts for the coming fiscal year.

He said there were only nine districts where the budget branch was in an excellent condition and can efficiently manage the budget while the remaining districts lacked capacity to carry out smooth functioning of the process of the budget making.

With a total sanctioned strength of 535 persons in the budget branch, only 289 were active employees in 36 districts, he added.

On the public participation in the budget-making process, most of the district governments were very weak. As many as 32 districts, including Lahore, Faisalabad, Rawalpindi, Multan, Attock, Jhelum and Chakwal, were very weak on engaging the public in the process.

He said elected local governments should be involved in the budget preparing which guarantee effective monitoring of the district budget officers, adding “due to lack of political oversight, the bureaucracy at the district level is lethargic and not accountable.