Policy Outcome 1: Further Devolve Social Services to DGs and TMAs

1.1   Devolve administrative powers in the social sector to local governments as per SLGO

SPG achieves devolution of administrative and financial powers in the social sectors

—including for approval of budgets, development programs and staff

transfers—from PLDs to DGs and TMAs

Reports indicating transfer of powers to

DGs and TMAs

Following the broad provisions of the SLGO as regards the transfer of powers to the LGs, the SPG has taken several steps including issuance of several orders, notifications that detail the administrative and financial powers that have been transferred to the LGs. These include:

1.    From the current Fiscal year, all DGs/TMAs have been empowered to prepare their own budgets and their share from the divisible pool as determined by the PFC Award has been transferred through one-line transfers. The LGs are also responsible for preparing their own Annual Development Plans (ADPs) to be approved through the process provided in the SLGO. Subject to the devolved powers of sanctioning of schemes, there is no role in approvals of LG ADPs by the Provincial Government.

2.    The Local Government Department has prepared a Summary after consultation with LGs regarding the vesting of powers of technical sanction to TMAs for Water and Sanitation schemes. At the moment, the practice in implementing these powers is fairly diverse and this Summary seeks to arrive at a policy decision on this issue. The Summary is currently under final review with the FD, before it is presented to higher forums for approval. Expected that the FD would be able to finalize its views within a week or so. The PSU Team at FD is assisting in this review

3.    The Sindh Local Government Contract Rules-2001 have been enforced, which empower DGs and TMAs to enter into and award contracts for various purposes, including hiring of consultants.

4.    The Sindh TMA/UA APT Rules-2001, which lay down the powers and processes for appointments, postings and transfers have been enforced

5.    In its meeting on 8^th January, the Sindh PFC has decided to distribute the share of TMAs/UAs in OZT (2.5% GST) directly to the TMAs/UAs to their respective accounts. LGD has finalized the share formula for this distribution

6.    Effective January 2004, the PFC has also decided to completely devolve Property Tax to the TMAs, requiring the DGs to collect the tax on behalf of the TMAs, retaining 10% as collection charges and passing on 90% share to respective TMAs.

The Local Government Department has prepared a Summary after consultation with LGs to streamline the procedures regarding the vesting of powers of technical sanction to TMAs for Water and Sanitation schemes. Summary seeks to arrive at a policy decision on this issue.

SLGB/CAO/2001/7482 dated; 5^th December 2001

(Annex - A)

SLGB/CAO/2001/7476 dated; 5^th December 2001

(Annex - B)

§          Finance Department in consultation with LGD has started releasing the 2.5% share of D.Gs and TMAs on existing formula, directly in their accounts w.e.f.  February 2004 (Annex - C).

§          LGD has submitted revised formula for the distribution of Local Finances for the review of PFC in its next meeting.

§          Property Tax and Entertainment Tax stands completely devolved vide Finance Department Notification NO. FD.SO (RES-V) 6 (28)/2003 dated March 8, 2004 (Annex - D).

1.2 Delegate          management responsibilities and authorities within the devolved         education and health sectors, as per SLGO

SPG, in consultation with DGs prepares an action plan specifying

responsibilities and

authority of EDOs, district officers and deputy district officers

Delegation plan

The broad responsibilities and authority of the EDOs DOs and DDOs have been provided for in the SLGO. However, specific actions have also been taken by PLDs in the form of delegation plans to empower EDOs and other District functionaries:

1.       Notification of Conduct of Business Rules for Districts, Rules of Business for TMAs and UAs.

2.       Notification by Finance Department to amend the West Pakistan Delegation of Powers under the Financial Rules and Powers of Re-appropriation Rules 1962 to both reflect the new responsibilities at the LG level and to empower officers at EDO, DO, DDO and ADO levels, by vesting in them powers of Officers of Category II, III, IV and V respectively under the relevant rules

3.       Notification by Local Government Department to amend Schedule 2 of the Sindh Civil Servants (Efficiency and Discipline) Rules, 1973 read with the Government of Sindh, Housing Town Planning, Local Government and Rural Development Department’s Notification in this respect, assigning administrative powers of Authorized Officers under Sindh E&D Rules, to various officers of the LGs

4.       Notification regarding devolution of ex-officio functions performed by the erstwhile office of Divisional Commissioners and Deputy Commissioners

Delegation Plan at Annex - E.

SLGB/CAO/2001/7480 dated: 5^th December 2001.

Notification No.  FD/B&E-1/2(18)75-94(Pt-VI) dated 30^th November, 2001 (Annex - F).

Notification No. SLGO/CAO/2001/7477 Dated: 5th December 2001.

1.3 Adjust the role of the 3 PLDs for education, health and LG to the new devolved set-up

PLDs articulate their new role and responsibilities in

the social sectors in relation to policy, sector monitoring,

and provision of technical support to DGs and TMAs

PLD Concept papers

The PLDs have prepared documents that present their policy perspective on the new roles and responsibilities:

§      Sindh Health Department has prepared a detailed plan which outlines the responsibilities at the Provincial level, District level as well as the structure at different tiers of Government and identified broad areas where capacity building is required. However, this plan needs review and refinement in the light of actual practice as well as providing an institutional framework for Health Boards and Patient Welfare Associations. The DSSP would address this area as part of its policy reform agenda in coming months. There is also a need to achieve closure on issues such as procurement, where conflicting signals often emerge.

§      Sindh Education Department has initiated a process of providing legal cover to the SMCs and prepared a draft Ordinance, which will be presented to the Cabinet shortly.

§      The Education department has empowered the SMCs to construct schools, undertake repairs, hire teachers on contract etc.

§      Health Department Paper regarding roles and responsibilities of HD and its Devolved offices has been placed on the Web site. http://www.financedept.gov.pk/dssp

§      HD   has requested for an early mobilization of expert to help the HD in preparation of a comprehensive plan for the community involvement in health care management.

§      An impact study of devolution on the DGs in heath sector is annexed (Annex - G)

·      Education Sector reforms were discussed among the participants during Education Round Table Conference held under the aegis of the ADB on16-17 March 2004 at Karachi. The Act is under review of the stakeholder       (Annex - H).

·      LGD has broadly prescribed its role and functions in post devolution set up through a notification dated June 29, 2002 (Annex - I).

Policy Outcome 2: Improve Social Sector Financing

2.1 In support of the Sindh Poverty Reduction Strategy, increase social sector spending above the normal increment

SPG agrees to maintain the

level of social sector allocations as a proportion of total revenues in FY03- 04 and allocate $33 million as an additionality