THE PUNJAB
LOCAL GOVERNMENT ACT 2022
(Act XXXIII of 2022)
C O N T E N T S
Section Heading
PART 1
PRELIMINARY
Chapter - I
Introduction
1. Short
title, extent and commencement.
2. Definitions.
Chapter - II
Succession of Local Governments
3. Succession
of the defunct local governments.
Chapter - III
Overriding Effect and Removal of Difficulties
4. Act
to override other laws.
5. Removal
of difficulties.
6. Certain
matters to be prescribed.
PART 2
CONSTITUTION AND FUNCTIONING OF LOCAL
GOVERNMENTS
Chapter - IV
Demarcation, Classification, Delimitation,
Constitution
of Local Governments and Review of Local Areas
7. Demarcation,
constitution and classification of Metropolitan Corporation and District
Council.
8. Notification
of local areas of Metropolitan Corporations and District Councils.
9. Review
of local areas of Metropolitan Corporations and District Councils.
10. Delimitation
of Union Councils by the Election Commission.
11. Principles
of delimitation of Union Councils.
12. Coordination
with Election Commission for delimitation.
Chapter - V
Composition and Structure of Local Governments
13. Local
government structure.
14. Head’s
Cabinet.
Chapter - VI
Authority of Local Governments
15. Local
governments to work within the Provincial framework.
16. General
authority and responsibility of a local government.
17. Extent
of authority of local governments.
18. Assignment
of additional responsibilities by Government.
19. Manner
of exercise of authority by a local government.
20. All
acts and orders to be taken or made in the name of local government.
Chapter - VII
Functions of Local Governments
21. Functions
and powers of Metropolitan Corporation and District Council.
22. Functions
and powers of Union Council.
Chapter – VIII
Additional functions in relation to the
Authorities, etc.
23. Functions
and powers in relation to the Authorities, Agencies and Companies in the
Metropolitan Corporations.
Chapter – IX
District Local Government Authorities for the
Devolved District Level Offices
24. Exercise
of functions and powers in relation to the devolved district level offices of
the Government Departments.
25. District
Authorities.
26. Composition
and management of the District Authorities.
27. Performance
of functions by the District Authorities.
Chapter – X
Mode of Discharge of Functions by the local
governments – Agency Arrangement and Joint Authorities.
28. Discharge
of functions by local governments.
29. Delegation
of functions to Union Councils.
30. Agency
arrangements.
31. Establishment
of joint authorities.
32. Inter-agency
coordination.
Chapter - XI
Duties of Certain Functionaries
33. Duties
and powers of a Head of the local government.
34. Duties
and powers of a Speaker.
35. Duties
of a Councillor.
36. Duties
and powers of Chief Officer.
37. Attendance
of Council meetings by Chief Officer.
38. Personal
responsibility for acts done and expenditure incurred without lawful authority.
Chapter - XII
Conduct of Business
39. Conduct
of business.
40. Meetings
of the House.
41. Contracts.
PART 3
ELECTIONS, TERM OF OFFICES AND RELATED MATTERS
Chapter - XIII
Authority for Local Government Elections
42. Election
Commission to conduct local government elections.
43. Elections
Act to apply.
44. All
authorities and persons to assist the Election Commission.
45. Delegation
of powers.
46. Election
Commission to regulate its own procedure.
Chapter - XIV
Election Method, Franchise and Related Matters
47. Election
Method.
48. Opposition
Leader.
49. Electoral
units.
50. Enlistment
of an Electoral Group.
51. Electoral
rolls.
52. Right
to vote.
Chapter - XV
Conduct of Elections
53. Notification
of election date and call up for election.
54. Only
nominated and eligible persons allowed to contest elections.
55. Manner
of conducting Elections.
56. Code
of Conduct for elections.
57. Returned
Candidates.
58. Announcement
of Results.
59. Election
to be called in question only before Election Tribunal.
60. Notification
of vacancy and bye-election.
Chapter - XVI
Qualifications and Term of Office of
Candidates
61. Qualifications
and disqualifications.
62. Defection
from a Political Party or Electoral Group.
63. Effect
of being found to be disqualified to be a candidate, Head of the local
government, Deputy Mayor, Vice Chairperson, Speaker, or a Councillor.
64. Bar
against double membership.
65. Term
of office of the Council, Head of the local government, Deputy Mayor, Vice
Chairperson, Speaker or a Councillor.
66. First
Meeting and Oath of office.
67. Effect
of failure to take oath.
68. Resignation
by a Head of the local government, Deputy Mayor, Vice Chairperson, Speaker or
Councillor.
69. Fresh
elections in case of casual vacancy in the office of a Speaker.
70. Filling
up of casual vacancies of Head, Deputy Mayor, Vice Chairperson and Councillors.
71. Power
of the Chief Minister to appoint an administrator.
PART 4
LOCAL GOVERNMENT FINANCE AND PROPERTIES
Chapter - XVII
Local Government Finance
72. Funds
of a local government.
73. Custody
of Local Fund and Public Account.
74. Charged
expenditure.
75. Application
of Local Fund.
76. Budget
preparation.
77. Approval
of budget.
78. Bottom up planning and the community ownership incentive
system.
79. Honoraria
and allowances.
80. Accounts.
81. Audit.
82. Local
government debt.
Chapter - XVIII
Punjab Local Government Finance Commission
83. Local
Government Finance Commission.
84. Term
of office and premature removal of certain members.
85. Casual
vacancies.
86. Eligibility
for appointment as an expert member.
87. Oath
of office of members of Finance Commission.
88. General
functions of the Finance Commission.
89. Right
of local governments to refer objections to Finance Commission.
90. Procedure
of Finance Commission.
91. Duty
of local governments and other public entities etc. to cooperate with Finance
Commission.
92. Secretariat
of the Finance Commission.
Chapter - XIX
Local Government Properties
93. Local
government properties.
94. Use
and disposal of properties of local governments.
95. Acquisition
of immovable property.
96. Loss
of property of local government.
97. Annual
stock of local government properties.
98. Insurance
of certain local government properties.
Chapter - XX
Local Government Taxes, Fees, Rates and Tolls
99. Authority
of a local government to levy taxes etc.
100. Procedure
for imposition, revision or abolishment of a local tax, fee, etc.
101. Date
on which local taxes, fee, etc. become effective.
102. Rating
areas and property tax.
103. Unfair
local taxes etc.
104. Duty
to furnish information on liability to local tax, fee etc.
105. Power
of entry for valuation of local taxes etc.
106. Presentation
of bill for local taxes and rates etc.
107. Notice
of demand to be issued on non-payment of bill.
108. Payment
of local tax etc. and consequences of default.
109. Investigation
of objections by Chief Officer.
110. Appeal
against the order of Chief Officer.
111. Liability
for local tax etc. to be called in question only under this Act.
112. Payments
to be made in authorized banks against receipts.
113. Writing
off of irrecoverable taxes etc.
114. Tax,
fee etc. not to become invalid for a defect in form.
115. Records
pertaining to valuation, assessment and collection of local tax, fee etc.
116.
Appointment of an agency or officer for collection of local tax, fee
etc.
Chapter - XXI
Inter-governmental Fiscal Transfers
117. Provincial
allocable amount and transfers to the local governments.
118. Process
for determination of provincial allocable amount and share of individual local
governments.
119. Duty
of Finance Commission to consider views of Government and local governments.
120. Term
of formulae on share of local governments and their revision.
121. Determination
of provincial allocable amount.
122. Principles
for determining transfers to individual local governments and related grants.
PART - 5
COMMUNITY EMPOWERMENT AND MOBILIZATION
Chapter - XXII
Community Mobilization through Community
Council and Panchayat
123. Community
Council and Panchayat.
124. General
functions of Community Council or Panchayat.
125. Amicable
settlement of disputes.
126. Reference
by Courts etc.
127. Conflict
of interest.
128. Procedure
of settlement of disputes.
CHAPTER - XXIII
Community Based Organizations
129. Composition
of Community Based Organizations.
131. Raising
of funds by Community Based Organization.
132. Community
Based Organization to be a non-profit organization.
PART 6
ACCOUNTABILITY, TRANSPARENCY, OVERSIGHT AND
RESPONSIVENESS
Chapter XXIV
Internal Controls
133. Power
of the Council to remove a Head of the local government, Deputy Mayor, Vice
Chairperson and Speaker.
134. Certain
limitations to apply in bringing a resolution for removal of a Head of local
government and Speaker.
135. Oversight
through committees of the Council.
136. Internal
inspections.
137. Internal
inquiries.
138. Complaint
Cell.
139. Right
to information.
Chapter - XXV
Transparency
140. General
rules of conduct.
141. Conflict
of interest.
142. Duty
to abstain from proceedings in case of conflict of interest.
143. Code
of Conduct for elected officials and officers etc.
144. Misconduct.
145. Certain
orders to be in writing or to be reduced to writing.
PART - 7
GOVERNMENT - LOCAL GOVERNMENTS RELATIONS
Chapter - XXVI
Oversight by the Government
146. Supervision
of local governments.
147. Power
to call for information.
148. Power
of the Secretary to suspend and set aside certain resolutions or orders of local
government.
149. Procedure
where Head of the local government fails to show cause or to take action on
directions under the Act.
150. Power
of the Secretary to take action on his own.
151. Suspension
or dissolution of a local government.
152. Effect
of suspension or dissolution of a local government.
153. Reinstatement
of suspended local government.
PART 8
COORDINATION AND CONFLICT MANAGEMENT
Chapter - XXVII
Punjab Local Government Commission
154. Establishment
of Punjab Local Government Commission.
155. Chairperson
and members of the Commission.
156. Term
of office and premature removal of certain members.
157. Casual
vacancy.
158. Eligibility
for appointment of expert members.
159. Oath
of office of members of the Commission.
160. Functions
of the Commission.
161. Certain
powers of a court to vest upon the Commission.
162. Procedure
of the Commission.
163. Duty
of the Government, local governments etc. to cooperate with the Commission.
164. Secretariat
of the Commission.
165. Responsibility
of the Commission.
PART 9
PLANNING AND DEVELOPMENT
Chapter – XXVIII
Planning, Development and Land use in Metropolitan
Corporation and District Council
166. Local
development plan.
167. Initiation
of proposals for new works etc..
168. Approval
of annual development plan.
169. Secretary
to certify annual development plan if not approved by a local government.
170. Planning
guidelines.
171. Duty
of every local government to maintain public service infrastructure maps.
PART 10
REGULATION AND ENFORCEMENT
Chapter - XXIX
Municipal Offences and their Cognizance
172. Offences,
punishments and their cognizance.
173. Appointment
and control of Inspectors.
174. Imposition
of fine through ticketing.
175. Court
proceedings for default in deposit of fine.
176. Compounding
of offences.
177. Municipal
Wardens.
178. General
powers of Inspectors.
179. Appointment
of Municipal Magistrates.
Chapter- XXX
Offences Relating to Code of Conduct and
Conflict of Interest
180. Punishment
for acting dishonestly.
181. Punishment
for acting despite conflict of interest.
182. Cognizance
of an offence under this Chapter by courts.
Chapter- XXXI
Offences Relating to Local Taxes
183. Punishment
for non-payment of tax etc..
184. Cognizance
of offences under this Chapter.
PART 11
MISCELLANEOUS
Chapter - XXXII
Officers and Servants of Local Governments
185. Chief
Officer, other officers and servants of local governments.
186. Security
of tenure for the Chief Officer and other officers.
187. Punjab
Local Government Service.
188. Service
cadre for servants of the local governments.
189. Continuation
of the Punjab Local Government Board.
190. Composition
of the Board.
191. Functions
of the Board and method for conduct of business.
PART 12
ADJUDICATION
Chapter - XXXIII
Appeals
192. Appeal
against orders of local governments.
Chapter - XXXIV
Bar of Jurisdiction of Courts
193. Jurisdiction
of courts barred.
194. Indemnity
of actions taken in good faith.
PART 13
MISCELLANEOUS
Chapter - XXXV
Miscellaneous
195. General
powers of local governments, etc.
196. Delegation
of powers by the Government.
197. Delegation
of Powers by the Head of local government.
198. All
Heads of the local governments, Deputy Mayors, Vice Chairpersons, Speakers,
Councillors, officer and servants of the local governments to be public
servants.
199. Remuneration
etc. for elected officials.
200. Training
of functionaries of local governments.
201. Bar
against employment of the elected officials in the local government.
Chapter - XXXVI
Subordinate legislation
202. Rules.
203. Bye-laws.
PART - 14
REPEAL AND TRANSITION
Chapter - XXXVII
Repeal and Savings
204. Repeal
and Savings.
Chapter - XXXVIII
Transitional Arrangements
205. Interim
authorities and continuation of public services.
206. Interim
maintenance of offices and Authorities to be transferred to local governments
under this Act.
207. Fiscal
transfers and taxes etc. to continue.
208. Fiscal
transfers and budget of the succeeding local governments for the first year in
office.
209. Salaries
and emoluments of officers and servants of the local governments during
transition.
SCHEDULES
FIRST SCHEDULE
SECOND SCHEDULE
THIRD SCHEDULE
FOURTH SCHEDULE
FIFTH SCHEDULE
SIXTH SCHEDULE
SEVENTH SCHEDULE
EIGHTH SCHEDULE
NINTH SCHEDULE
TENTH SCHEDULE
[1]THE PUNJAB LOCAL GOVERNMENT ACT 2022
(ACT XXXIII OF 2022)
[16th November 2022]
An Act to reconstitute local
governments in the Punjab and consolidate laws relating to powers and functions
of the local governments.
It is expedient to reconstitute the local governments and consolidate
laws relating to powers and functions of local governments for establishing an
effective elected local government system for meaningful devolution of
political, administrative and financial responsibility and authority to the
directly elected representatives of the local governments as envisaged under
Article 140A of the Constitution to promote good governance, effective delivery
of services and transparent decision making through institutionalized
participation of the people at local level; and to deal with ancillary matters.
PART 1
PRELIMINARY
Chapter - I
Introduction
1. Short title, extent and commencement.– (1) This Act may be cited as the Punjab Local Government Act 2022.
(2) This Act shall extend to
whole of the Punjab except:
(a) the areas notified as
cantonments under the Cantonments Act, 1924 (II of 1924), or the Cantonments
Ordinance, 2002 (CXXXVII of 2002), or such other areas under active possession
and direct control of the Armed Forces of Pakistan that may be notified by the
Government for this purpose; and
(b) the area exempted by the
Government from any or all of the provisions of this Act through a notification
in the official Gazette.
(3) This Act shall come into
force at once.
2. Definitions.– (1) In this Act:
(a)
“administration” means administration of a local government other than
Union Council, comprising such officers of the prescribed services and servants
of local government; and in case of Union Council, such officials of
Directorate General Local Government and Community Development, as may be
determined by the Secretary in the schedule of establishment of the respective
local government;
(b)
“Auditor General‟ means the
Auditor General of Pakistan appointed under Article 168 of the
Constitution;
(c)
“Board” means the Punjab Local Government Board;
(d)
“budget” means the estimate of expected receipts and expenditure of a
local government for a given financial year, and as the case may be, includes
the estimate of receipts and expenditure of constituent offices, entities and
agencies of that local government;
(e)
“building control” means implementation of a
set of standards and regulatory framework established and enforced by a local
government, for the safety of a building and its surrounding environment;
(f)
“bye-laws” means bye-laws made by a local
government under this Act or rules made thereunder;
(g)
“candidate” means a candidate for election under this Act;
(h)
“cantonment” means a place or places notified as cantonment under the
Cantonments Act, 1924 (II of 1924), or the Cantonments Ordinance, 2002 (CXXXVII
of 2002);
(i)
“Code” means the Code of Criminal Procedure, 1898 (V of 1898);
(j)
“census” means a population and housing census provisionally or finally
published under the General Statistics (Reorganization) Act, 2011 (XIV of 2011),
whichever is later;
(k)
“Chief Officer” means Head of the administration of the Metropolitan
Corporation and District Council, including
Officer in-charge of a Municipal Unit.
(l)
“Collector” means a Revenue Officer appointed under section 7 of the
Punjab Land Revenue Act, 1967 (XVII of 1967);
(m)
“Commission” means the Punjab Local Government Commission constituted
under this Act;
(n)
“committee” means a committee constituted under this Act;
(o)
“Community Council” means a Community Council constituted under this
Act;
(p)
“Constitution” means the Constitution of the Islamic Republic of
Pakistan.
(q)
“Council” means the Council comprising the Speaker and other Councillors
of a local government;
(r)
“Councillor” means a Councillor of the Council and includes a Speaker
and a Councillor elected against a reserved seat;
(s)
“defunct local government” means a local
government constituted under any local government law existed prior to the
commencement of this Act;
(t)
“Department” means the Local Government and Community Development
Department of the Government;
(u)
“Directorate General” means the Directorate General Local Government and
Community Development;
(v)
“Directorate General (Inspections & Monitoring)” means the Directorate
General of Inspections & Monitoring of the Board;
(w)
"disabled person" means the same as
defined under the Disabled Persons (Employment and Rehabilitation) Ordinance,
1981 (XL of 1981) or any other law on this subject for the time being in force;
(x)
“district” means a District notified under the Punjab Land Revenue Act,
1967 (XVII of 1967);
(y)
“District Council” means a District Council constituted under this Act;
(z)
“elected office” means the office of a
local government against which a Head, Deputy Mayor, Vice Chairperson, Speaker
or a Councillor is elected;
(aa)
“elected official” means a Head of local
government, Deputy Mayor, Vice Chairperson, Speaker, or a Councillor;
(bb)
“Elections Act” means the Elections Act, 2017 (XXXIII of 2017);
(cc)
“Election Commission” means the Election Commission of Pakistan
established under Article 218 of the Constitution;
(dd)
“farmer” means a person who owns more than five acres of land;
(ee)
“Election Tribunal” means the Election Tribunal constituted by the
Election Commission to decide election petitions;
(ff)
“electoral group” means an Electoral Group
enlisted under this Act;
(gg)
“electoral officer” means an officer appointed
for election under this Act and includes a Presiding Officer, an Assistant
Presiding Officer and a Polling Officer;
(hh)
“electoral roll” means an electoral roll
prepared, revised or corrected under the Elections Act;
(ii)
“electoral unit” means electoral unit
constituted for an election under this Act;
(jj)
“Electronic Voting Machine (EVM)” means any device that is used by the
Election Commission for conduct of free and fair local government elections for
voting purposes, other than Ballot Papers whether for voting, counting of
votes, transmitting the final results or recounting of the votes purposes;
(kk)
“emergency” means circumstances imminently endangering public health,
safety, life or significant or large scale harm to
property requiring an immediate action;
(ll)
“fee” means fee against specific services provided by a local government
and includes a regulatory fee for regulation of a business or activity;
(mm)
“Finance Commission” means the Punjab Local Government Finance
Commission constituted under this Act;
(nn)
“financial year” means the year commencing on
the first day of July and ending on the thirtieth day of June;
(oo)
“Government” means Government
of the Punjab;
(pp)
“government agency” means a department, office,
authority, body, company, or institution of the Government or the Federal
Government;
(qq)
“Head’s Cabinet” means the Cabinet of the Head of a local government
constituted under this Act;
(rr)
“Head of local government” means:
(i)
Lord Mayor of Metropolitan Corporation Lahore;
(ii)
City Mayor of a Metropolitan Corporation other than Lahore;
(iii)
District Mayor of a District Council; and
(iv) Chairperson of a Union
Council;
(ss)
“High Court” means the Lahore High Court, Lahore;
(tt)
“House” means the elected Council of a local government;
(uu)
“joint authority” means a joint authority
established under this Act;
(vv)
“land use” means the human use of land, to
represent the economic and cultural activities e.g., agricultural, commercial,
residential, industrial, mining, and recreational use that are practiced at a
given place;
(ww)
“land use control” means exercise of power to
restrict private and public use of land and natural resources, to conform to
master planning;
(xx)
“land use plan” means a plan drawn up and
approved by a local government or any government agency competent to draw up
and approve which provides the actual land use and proposed land use for
permitted, permissible and prohibited development activities, both in the
planned areas and non-planned areas, within the local area of a local government;
(yy)
“local area” means the area comprising
territorial jurisdiction of a local government demarcated or delimited under
this Act;
(zz)
“local government” means a Metropolitan
Corporation, a District Council, and a Union Council;
(aaa)
“master plan” means a dynamic long term
planning and policy document that provides a conceptual lay out to guide future
growth and development and includes analysis and evaluation of standards,
proposals for population, economy, housing, transportation, community
facilities and land use;
(bbb)
“municipal unit” means a sub-office of a local
government administration established for performance of its functions in an urban area;
(ccc)
“operating officer” means the operating officer of a joint authority appointed under
this Act;
(ddd)
“Panchayat” means a panchayat constituted under this Act;
(eee)
“peasant” means a person who is a landless farm worker, or one who
during the period of five years preceding the year in which election is held,
has been the owner of not more than five acers of land and depends directly on
it for subsistence living;
(fff)
“Political Party” means a Political Party within the meanings of the
Elections Act;
(ggg)
“prescribed” means prescribed by rules made under this Act;
(hhh)
“prescribed service” means the Punjab Local
Government Service, Provincial Management Service, or Pakistan Administrative
Service, whether called by this or any other title;
(iii)
“Province” means Province of the Punjab;
(jjj)
“provincial allocable amount” means sums allocated out of the Provincial
Consolidated Fund
under this Act as a share for transfer to a local government
under this Act.
(kkk)
“Provincial Consolidated Fund” means the Provincial Consolidated Fund
within the meanings of Article 118 of the Constitution;
(lll)
“public service” means a service provided by a
local government in relation to its functions for the residents;
(mmm)
“recognized institution” means an educational
institution recognized by the Higher Education Commission established under the
Higher Education Commission Ordinance, 2002 (LIII of 2002) or any other similar
agency mandated for this purpose under any other relevant law;
(nnn)
“rent” means whatever is lawfully payable in money or kind by a tenant
or lessee on account of the occupation of any building or land or use of any
machinery, equipment or vehicle;
(ooo)
“reserved seat” means a seat reserved for religious minorities, women, peasants or
workers, youth, disabled persons and traders or farmers;
(ppp)
“resident” means a person who ordinarily resides in the local area of a
local government, and where relevant as regards the functions of a joint
authority, includes persons from outside that area who regularly use facilities
or services provided by that joint authority;
(qqq)
“rules” means the rules made under this Act;
(rrr)
“Rural Union Council” means a Union Council delimited and constituted in
the local area demarcated as rural area under the Punjab Local Government Act,
2019 (XIII of 2019);
(sss)
“Schedule” means a Schedule
appended to this Act;
(ttt)
“Secretary” means the Secretary as defined in the Punjab Government
Rules of Business, 2011, and where no suffix is mentioned therewith, it shall
mean the Secretary in charge of the Local Government and Community Development
Department of the Government;
(uuu)
“Secretary Union Council” means an official in-charge of the administration of a Union Council;
(vvv)
“servant” means an employee
of a local government;
(www)
“Speaker” means the Speaker of the Council, and in relation to the
holding of a meeting of the Council in the absence of the Speaker, a Councillor
chosen by the Council to preside over the meeting of such session; and in case
of Union Council, it means the Vice Chairperson;
(xxx)
“standing instructions” means the standing
instructions issued under this Act;
(yyy)
“tehsil” means an area notified under the Punjab Land Revenue Act, 1967
(XVII of 1967);
(zzz)
“trader” means a person who during the period of five years preceding
the year in which election is held, has been engaged in the business of buying
and selling of goods, commodities or services and primarily depends upon it to
earn his livelihood;
(aaaa)
“Union Council” means an urban
Union Council or a rural Union Council delimited and constituted under this
Act;
(bbbb)
“urban area” means an area demarcated and
notified as urban under the Punjab Local Government Act, 2019 (XIII of 2019);
(cccc)
“Urban Union Council” means a Union Council delimited and constituted in
the local area demarcated as urban area under the Punjab Local Government Act,
2019 (XIII of 2019);
(dddd)
“worker” means a person who
primarily depends upon personal labour for subsistence, or a worker as defined
in the “Punjab Industrial Relations Act 2010 (XIX of 2010), and in both cases,
has maintained such status for last five years preceding the year in which
election is held; and
(eeee)
“youth” means a person who is not less than eighteen years of age and
not more than thirty two years of age on the last date
fixed for filing of nomination papers.
(2) The words, terms or
expressions used but not defined in this Act shall have the same meaning as
assigned in the Constitution or other applicable laws in force.
Chapter - II
Succession of Local
Governments
3. Succession of the
defunct local governments.–
(1) Each local government shall succeed:
(a) such property of a
defunct local government located within the limits of its local area which, in
view of the Secretary, is required by it for the due discharge of any function
under this Act;
(b) such officers and
servants of a defunct local government who, in the view of the Secretary, are
required by it for the discharge of any function under this Act; and
(c) such rights, funds,
claims or liabilities or portions thereof which, in the view of the Secretary,
were respectively raised, made or accrued by a defunct local government in
relation to areas comprising its local area.
(2) Subject to subsection
(3), the Secretary shall, having regards to the circumstances appertaining to
each case, determine the share of a local government where:
(a) any property of a
defunct local government is required by two or more local governments for the
discharge of a function under this Act;
(b) any officer or servant of
a defunct local government is required by two or more local governments for the
discharge of a function under this Act; and
(c) any fund, claim or
liability or portion thereof which was respectively raised, made or accrued by
a defunct local government in relation to areas comprising the local areas of
two or more local governments.
(3) No local government
shall, unless otherwise provided by the Secretary, succeed to any property,
right, fund, claim or liability or portion thereof of a defunct local
government which does not pertain to a function assigned to it under this Act:
provided that all
properties, rights, funds, claims and liabilities of a defunct local government
which pertain to a function not assigned to any local government under this Act
shall be succeeded to by the Government.
(4) The Secretary shall, by a
general or special order, provide for the manner of succession and discharge of
liabilities, if any, of a defunct local government.
(5) The Secretary shall assign all properties,
rights, funds, claims or liabilities among local governments under this section
and all disputes relating to this matter shall be referred to and decided by it
and such decision shall be final.
Explanation: For the purpose of this
section, the term “property” shall include any land, building, office, work,
facility, amenity, vehicle, equipment, plant, store or apparatus.
Chapter - III
Overriding Effect and
Removal of Difficulties
4. Act to override other laws.– The provisions of this Act shall have effect notwithstanding anything
contained in any other law for the time being in force.
5. Removal of difficulties.– The Chief Minister may, by order not inconsistent with the object of
this Act, provide for the removal of any difficulty which may arise in giving
effect to the provisions of this Act.
6. Certain matters to be prescribed.– Wherever this Act requires anything to be done but does not make any
provision or sufficient provision as to the authority by whom it shall be done,
or the manner in which it shall be done, then it shall be done by such
authority and in such manner, as may be prescribed.
PART 2
CONSTITUTION AND
FUNCTIONING OF LOCAL GOVERNMENTS
Chapter - IV
Demarcation,
Classification, Delimitation, Constitution
of Local Governments and
Review of Local Areas
7. Demarcation,
constitution and classification of Metropolitan Corporation and District Council.– (1) The urban and rural areas demarcated and notified under Punjab Local
Government Act, 2019 (XIII of 2019) shall be deemed to have been demarcated and
notified, unless altered under this Act, for constitution of the local areas of
the following local governments and in the manner given below:
(a) a Metropolitan
Corporation as follows:
(i) all areas comprising
district Lahore as Metropolitan Corporation Lahore; and
(ii) Largest urban area in the districts of Sialkot, Gujrat, Bahawalpur, Dera Ghazi Khan, Faisalabad Gujranwala, Multan, Rawalpindi,
Sahiwal and Sargodha, as the Metropolitan Corporation of the respective local
area; and
(b) a District Council as
follows:
(i) area of District of
Sialkot, Gujrat, Bahawalpur, Dera Ghazi Khan, Faisalabad, Gujranwala, Multan,
Rawalpindi, Sahiwal and Sargodha, excluding the local area of Metropolitan
Corporation in that district; and
(ii) whole area of a district
except the districts of Lahore, Sialkot, Gujrat, Bahawalpur, Dera Ghazi Khan,
Faisalabad Gujranwala, Multan, Rawalpindi, Sahiwal and Sargodha.
(2) Each local area shall
constitute territorial jurisdiction of the respective local government.
8. Notification of local
areas of Metropolitan Corporations and District Councils.- Subject to section 7, the Deputy Commissioner shall issue fresh
notifications of demarcation of local areas of Metropolitan Corporations and
District Councils mentioning therein urban and rural areas and population of
each census block as per latest census results.
9. Review of local areas of
Metropolitan Corporations and District Councils.- The Government may, through a notification in official gazette,
increase or decrease the limit of the local areas of Metropolitan Corporations
and District Councils.
Provided that any
change in the limit of the local areas shall be effective from the next
elections of such local governments.
10. Delimitation of Union Councils by the Election Commission.– (1) The Election Commission shall delimit the Union Councils under the
Elections Act in the prescribed manner.
(2) The local areas of Union Councils shall
be identified with a specific number given by Election Commission and name
which may be assigned by the Government.
(3) The Election Commission shall delimit
the urban area in a district constituting the Metropolitan Corporation, defunct
Municipal Corporation, defunct Municipal Committee, defunct Town Committee
demarcated and constituted under the Punjab Local Government Act, 2019 (XIII of
2019) into urban Union Councils, with an average population of twenty-five
thousand.
(4) Subject to subsection (3), the Election
Commission shall delimit rural area in a District Council into rural Union
Councils, with an average population of twenty-five thousand.
(5) Government may through a notification in
official gazette, declare a rural Union Council having urban characteristics as
Urban Union Council on the recommendation of Deputy Commissioner concerned.
(6) Government may through a notification in
official gazette, declare an urban Union Council as rural Union Council, if the
local area has no urban characteristics, on the recommendation of Deputy
Commissioner concerned:
Provided that any change
under sub-section (5) and (6) shall be effective from the next elections of
such local governments.
11. Principles of
delimitation of Union Councils.–
(1) A variation in the limit of population of local areas shall be
permissible up to ten percent, in order to avoid splitting of census blocks.
(2) For delimitation of the
local areas of Union Councils, it shall be ensured that:
(a)
population of local area of each Union Councils shall be uniform, as far
as possible, as per the latest census;
(b)
the local area shall be a territorial unit;
(c)
the boundaries of a rural Union Council shall not cross the limits of the respective tehsil in a district; and
(d)
the boundaries of urban Union Council shall not cross the limits of the respective Metropolitan Corporation,
defunct Municipal Corporation or Municipal Committee or Town Committee
constituted under the Punjab Local Government Act, 2019 (XIII of 2019), as the
case may be.
12. Coordination with
Election Commission for delimitation.– (1) The Deputy Commissioners shall coordinate and facilitate the
Election Commission in whole process of delimitation and provide required
details about the local area of each local government demarcated under section
7 in identifying the distribution of
population in geographically compact areas, physical features, existing
boundaries of administrative units, facilities of communication and public
convenience and other cognate factors to ensure homogeneity in the delimitation
of Union Councils.
(2) The Deputy Commissioner
shall provide to the Election Commission all notifications of local areas
showing notified population along with their census block codes and copies of
authenticated maps of local governments showing the clear boundaries.
(3) The Government may, by notification in the official Gazette, specify the
name by which a Union Council shall
be known and unless the name of a Union Council is so specified, it shall be known as the Union Council of the
place where its office is situated.
Chapter - V
Composition and Structure
of Local Governments
13. Local government structure.– (1) A local government of a Metropolitan Corporation and a District
Council shall consist of:
(a) Head of a local
government;
(b) two Deputy Mayors in
Metropolitan Corporations;
(c) one Deputy Mayor of each
Tehsil in each District Council;
(d) a nominated Head’s
cabinet comprising of such Councillors and technocrats as provided in section
14 of this Act except for a Union Council;
(e) a Council comprising of
such number and description of Councillors, including the Speaker, as is given
in First Schedule of this Act; and
(f) an administration
comprising of officers and servants in a local government.
(2) The Secretary with the approval of Minister, may establish one or more
municipal units in a local government for performance of its functions.
(3) The local governments of
Union Councils shall consist of:
(a) Chairperson and Vice
Chairperson;
(b) five Councillors elected
on general seats;
(c) one seat reserved for
workers in an urban Union Council or for peasants in a rural Union Council;
(d) one seat reserved for
religious minorities;
(e) two seats reserved for
women;
(f) one seat reserved for
youth; and
(g) an administration
comprising a Secretary Union Council and the members of ancillary staff, as may be determined by the
Secretary;
provided that in case there is no candidate in an electoral unit to
contest election against the seat reserved for religious minority, such seat
shall be deemed to be an additional seat reserved for worker or peasant, as the
case may be.
(4) The Vice-Chairperson of
a Union Council shall act as the Speaker of the Council.
(5) Every local government,
so constituted, shall be a body corporate having perpetual succession and a
common seal, and subject to the provisions of this Act, shall have power to
acquire, hold and transfer property, both movable and immovable, to contract and
to do all other things necessary for the purposes of its constitution; and
shall by its name sue and be sued.
14. Head’s Cabinet.– (1) There shall be a Head’s Cabinet of a local government, except Union
Councils, to aid and advise the Head in exercise of his functions, to be
appointed by the head, not later than forty five days from taking of his oath:
provided that the Cabinet Members shall hold the office during the
pleasure of the Head:
provided further that with the removal of the Head or on expiry of his
term, the Head’s Cabinet shall also be dissolved forthwith.
(2) The Head’s Cabinet, for
local governments shall comprise of such number of Councillors and Technocrats
nominated by the Head of a local government, as mentioned in the Second
Schedule.
(3) No person shall be
appointed as a Technocrat in the Head’s Cabinet, unless he is a technocrat
holding a degree requiring conclusion of at least sixteen years of education,
recognized by the Higher Education Commission and has a professional experience
of not less than five years in public or municipal administration, public
finance, law, education, public health, Commerce and Industry, Information
Technology, Mass Communication or any other area relating to functions of the
local government:
provided that no person shall be appointed as a Technocrat member of the
Head’s Cabinet, unless he is otherwise eligible to be a candidate for the
office of Head of a local government, Speaker or Councillor.
(4) Before entering upon
office, a Head’s Cabinet member shall make before the Head of the local
government, oath in the form set out in the Fourth Schedule.
(5) The Head’s Cabinet shall
be responsible to the Head of the local government.
(6) A Head’s Cabinet member
may, by writing under his hand addressed to the Head of the local government,
resign his office.
Chapter - VI
Authority of Local
Governments
15. Local governments to work
within the Provincial framework.–
(1) Every local government shall function within the framework of the
Province and adhere to all applicable federal and provincial laws.
(2) No local government shall
do anything or act in a manner that impedes or is otherwise prejudicial to the
exercise of executive authority of the Government.
16. General authority and
responsibility of a local government.– (1) Subject to and to the
extent given under this Act, every local government shall have the authority to
run the affairs of respective local area without interference.
(2) A local government shall,
having regard to the practical considerations:
(a) exercise its authority
and incur expenditure in the best interests of the residents without any favour
or prejudice in a democratic and accountable manner;
(b) involve residents in
running its affairs and from time to time consult them on the level, quality,
range and impact of services; and
(c) give equitable access to
services.
17. Extent of authority of
local governments.–
(1) The authority of every local government shall be limited to the
discharge of functions assigned to it under this Act or any other law for the
time being in force.
(2) Subject to the provisions
of this Act, the authority of a local government shall extend to doing of all
acts that are necessary for the due discharge of its functions or acts that are
likely to facilitate or are conducive or incidental to the discharge of its
functions under this Act or any other law for the time being in force.
18. Assignment of additional
responsibilities by Government.–
Nothing in this Act shall prevent the Government from assigning any
function to a local government which is not included in its power and
functions.
19. Manner of exercise of
authority by a local government.–
(1) Subject to the provisions of this Act, the executive authority of a
local government shall vest in and be exercised by its Head in accordance with
this Act.
(2) A Deputy Mayor or a Vice
Chairperson shall generally exercise such powers and perform such functions as
may be delegated by the Head of the local government.
(3) In case of temporary absence of the Head of a local government, the
Deputy Mayor or the Vice Chairperson nominated by the Head shall deputize his
office.
(4) The Head of a local
government may, direct, guide or supervise officer or servant of a local
government.
(5) The Council and its
committees and sub-committees shall act through resolutions in accordance with
the provisions of this Act.
20. All acts and orders to be
taken or made in the name of local government.– All acts and orders of a local government shall be expressed to be taken
or made in its name.
Chapter - VII
Functions of Local
Governments
21. Functions and powers of
Metropolitan Corporation and District Council.– (1) A Metropolitan Corporation and a District Council shall:
(a)
implement the provisions of this Act, rules and bye-laws;
(b)
exercise control over land-use including land-subdivision, land
development and zoning by public and private sectors for any purpose, including
for agriculture, housing, industry, commerce markets, shopping and other
employment centers, residential, recreation, parks, entertainment etc., as per
the approved Master Plan;
(c)
subject to any other special law relating to preparation and approval of
Regional, Master and land use plan for the time being in force; approve spatial
plans, zoning, land use plans, including classification and reclassification of
land, as per the approved Master Plan;
(d)
enforce building control as may be prescribed;
(e)
undertake urban design and urban renewal programmes;
(f)
approve development schemes for beautification of urban areas;
(g)
prepare, approve, execute and manage development plans;
(h)
regulate development and management of site development and housing
schemes;
(i)
manage properties, assets and funds vested in the local government;
(j)
lease and rent out properties owned or otherwise vested in, managed or
maintained by the local governments;
(k)
undertake landscape, parks, monuments and municipal ornamentation;
(l)
prepare and approve budget, revised budget and annual and long term municipal development programmes;
(m)
approve taxes and fees etc.;
(n)
collect approved taxes, fees, rates, rents, tolls, charges, fines and
penalties;
(o)
prepare and approve proposals for construction of express ways,
fly-overs, bridges, roads, under passes owned by or vested in local
governments;
(p)
regulate affixing of sign-boards and advertisements except where this
function is being performed by the Park and
Horticulture Authority;
(q)
naming and renaming of roads, streets and public places vested in,
managed or maintained by the local governments;
(r)
develop integrated system of water reservoirs, water sources, water
supply and treatment plants, drainage including storm water drainage, liquid
and solid waste collection, disposal and treatment including landfill site and
recycling plants, sanitation and other municipal services;
(s)
provide, develop, manage, operate, maintain and improve the municipal
infrastructure and services, including –
(i)
roads and streets;
(ii)
traffic planning, engineering and management including traffic signaling
systems, signs on roads, street markings, parking places, transport stations,
stops, stands and terminals;
(iii)
street lighting; and
(iv)
playgrounds, open spaces, graveyards and arboriculture.
(t)
maintain municipal records and archives;
(u)
maintain a comprehensive data base and information system and provide
public access to it on nominal charges;
(v)
regulate and organize sports, cultural, traditional and recreational
events, fairs and shows;
(w)
undertake adaptive reuse strategies to restore, preserve and undertake
heritage and historical assets through agency arrangement, in the local area;
(x)
establish and manage municipal libraries;
(y)
promote school sports and traditional local sports;
(z)
ensure environmental protection;
(aa)
encourage tree afforestation and plantation at local level;
(bb)
provide assistance through grants to registered and credible Government
and Non-Government Organizations for provision of public service;
(cc)
regulate and establish street markets in the manner prescribed;
(dd)
undertake steps to implement population control policy of Government;
(ee)
regulate private markets and establish and maintain public markets;
(ff)
regulate, establish and maintain cattle and other animal markets and
slaughter houses;
(gg)
regulate sale of cattle;
(hh)
enforce all municipal laws, rules and bye-laws governing its
functioning:
(ii)
authorize an officer or officers to issue notice to a person committing
any municipal offence and initiate legal proceedings for continuance of
commission of such offence or for failure to comply with the directions
contained in such notice;
(jj)
sue, prosecute and defend court cases;
(kk)
assist relevant authorities in disaster management and relief
activities;
(ll)
provide relief for the widows, orphans, poor, trans genders and other
persons in distress, and children and persons with disabilities;
(mm)
make arrangements for enhancement of
the care of disabled persons, paupers, aged, sick, persons of unsound mind,
abandoned minors, juvenile delinquents, drug addicts, victims of child abuse,
needy and disadvantaged persons; and
(nn)
exercise administrative, operational and management control of the
devolved district level offices of the Government departments as may be
notified by the Government.
(2) A Metropolitan
Corporation and a District Council may:
(a) entrust any of its
functions to a person, any public-private, public or private organization,
authority, agency or company through a contractual arrangement, on such terms
and conditions as may be prescribed:
provided that responsibility for discharge of such functions shall
continue to vest with such local government;
(b) on such terms and
conditions as are mutually agreed, transfer its functions or responsibilities
with regard to providing municipal services to the Union Council falling within
its local area:
provided that no function or
responsibility shall be transferred without allocation of corresponding
resources and funds:
provided further that the
responsibility to regulate and monitor such functions and services shall remain
with the transferring local government;
(c) perform such other
functions as may be assigned or entrusted to it by the Government;
(d) by an agreement and on
such terms and conditions as may be mutually agreed, perform any function of
the Government;
(e) with funds raised
through voluntary contributions or external grant, undertake any development
project;
(f) with the approval of the
Government and concerned regulatory authorities of the Federal Government and
the Government, set-up, acquire, manage and operate any commercial activity on
a self-financing basis; and
(g) setup a corporate body
to perform any of its functions, singly or jointly with other public or private
bodies:
provided that responsibility for
discharge of such functions shall continue to vest with the local government.
(3) The Metropolitan
Corporation and a District Council may also:
(a) review public service
delivery of departments including Police and Revenue Administration; and
(b) seek written response
and clarification from district Head of such departments on queries of the
local government regarding their performance, functions and operations:
provided that in case of unsatisfactory response, Head of a local
government may send a reference to the Chief Minister for resolution of the
matter.
22. Functions and powers of
Union Council.– (1) The functions and powers of Union Council shall be to:
(a)
approve its budget;
(b)
approve the levy of tax and fee etc;
(c)
collect approved taxes, fees, rates, rents, tolls, charges, fines and
penalties;
(d)
enforce this Act, rules and bye-laws regulating its functioning;
(e)
nominate members of the Community Councils in its respective urban area
and monitor their performance;
(f)
nominate members of the Panchayats
within its respective rural area and monitor their performance;
(g)
mobilize the community:
(i) for maintenance of
public ways, public streets, street lights, culverts, bridges, public buildings
and local drains;
(ii) for plantation of trees,
landscaping and beautification of public places;
(iii) for prevention and
removal of encroachments on public ways, streets and places;
(h)
provide and maintain public sources of drinking water, such as wells,
water pumps, tanks and ponds, and open drains;
(i)
coordinate with the community organizations for proper maintenance of
water supply schemes, sewerage, waste collection and removal;
(j)
manage and maintain grazing areas, common meeting places and other
common property;
(k)
hold local fairs and recreational activities;
(l)
registration of births, deaths, marriages and divorces;
(m)
promote local, school and traditional sports;
(n)
take other measures likely to promote the welfare, health, safety,
comfort or convenience of the inhabitants of its local area;
(o)
identify deficiencies in delivery of public services and make
recommendations for improvement of services;
(p)
execute small scale development works relating to its functions;
(q)
report illegal excavation of earth, sand, stones or other material to
the relevant authorities;
(r)
celebration of public festivals;
(s)
assist the relevant authorities in disaster management and relief
activities;
(t)
manage properties, assets and funds vested in it; and
(u)
maintain such statistics and data as may be specified and disseminate information on matters of public interest; and
(2) A Union Council may
perform any other function entrusted to it by the Government or its respective upper level local government, in whose local area the Union
Council is situated.
Chapter – VIII
Additional functions in
relation to the Authorities, etc.
23. Functions and powers in
relation to the Authorities, Agencies and Companies in the Metropolitan Corporations.– (1) Notwithstanding anything to the contrary contained in this Act or
any other law for the time being in force, the following companies, authorities
and agencies providing municipal services and facilities in Metropolitan
Corporations, shall stand entrusted to the respective Metropolitan Corporation:
(i)
Parks and Horticulture Authorities;
(ii)
Development Authorities;
(iii)
Water and Sanitation Agencies;
(iv)
Traffic Engineering and Planning Agency; and
(v)
Waste Management Companies.
(2) Subject to any specific
direction and policy of the Government, the Metropolitan Corporation shall
perform the following functions and powers in respect of the companies,
authorities and agencies:
(a)
administrative and financial control; and
(b)
approval of policies, taxes, fees etc.
(3) The Head of the
respective Metropolitan Corporation or his nominated Deputy Mayor or an elected
member of the Head’s Cabinet shall be the ex-officio chairperson of the
respective Authority, company or agency.
(4) A Development Authority shall, in discharge of its regulatory functions,
where required by the local government due to its inability to act because of
lack of resources or capacity, act as an agency in aid and support of such
local government.
(5) Where a Development Authority intends to perform functions assigned to
it under the law but such functions are assigned to the local government under
the Act, the Development Authority shall perform such functions after
consultation and with the consent of the concerned local government on such
terms and conditions as may be determined by the concerned local government.
(6) No Development Authority
shall extend or curtail the boundaries of its existing controlled area without
the consent of the concerned local government.
(7) Where in the performance
of the functions under subsections (5) and (6), the issue needs further
guidance and direction, it shall be referred to the Commission for final
decision.
Chapter – IX
District Local Government
Authorities for the Devolved District Level Offices
24. Exercise of functions and
powers in relation to the devolved district level offices of the Government Departments.– (1) Notwithstanding anything to the contrary contained in any other law
for the time being in force, subject to the provisions of subsection (2), the
following district level offices of the Government departments, shall stand
devolved on the local governments:
(a)
Health (Primary and Secondary);
(b)
Education (School Education);
(c)
Social Welfare;
(d)
Population Welfare; and
(e)
Sports.
(f)
Civil Defence
(2) The Government may,
through a notification published in the official Gazette, devolve any other
district level office of a Government Department or de-notify any such district
level office.
(3) The devolved offices
shall be administered, operated and managed at the district level, through the
respective District Authority established under this Act.
(4) The respective District
Authority shall exercise such authority within the district in accordance with
the general policy of the Government.
25. District Authorities.– For each devolved district level office of a Government Department, a
separate District Authority shall be established by the Government in each
district through a notification published in official Gazette, as follows:
(i) A District Health
Authority for the devolved function of district level office of Primary and
Secondary Healthcare Department;
(ii) District Education
Authority for the devolved function of district level offices of School
Education Department and Literacy and Non-Formal Basic Education Department;
(iii) District Social Welfare
Authority for the devolved function of district level office of Social Welfare
Department;
(iv) District Population
Control Authority for the devolved function of district level office of
Population Welfare Department;
(v) District Sports and
Recreation Authority for the devolved function of district level office of
Sports Department;
(vi)
District Civil Defence Authority for the devolved function of district
level office of Civil Defence; and
(vii) Any other District
Authority established by the Government, for each district level office of a
Government Department, which is notified to have been devolved on the local
governments.
26. Composition and
management of the District Authorities.– (1) The administration,
operation and management of the
respective District Authority shall vest in its Executive Board, comprising:
(a)
the Lord Mayor of Lahore Metropolitan Corporation as the Chairperson of
all the District Authorities in the District and his nominated Deputy Mayor or
one of the elected Member of the Head’s Cabinet or the Council as the Vice
Chairperson of a District Authority, in Lahore district:
provided that a Vice Chairperson of a District Authority in Lahore
district shall not hold the office of Vice Chairperson of more than one
District Authority;
(b)
the District Mayor of a district as the Chairperson of all the District
Authorities in the District and his nominated Deputy Mayor or one of the
elected Members of the Head’s Cabinet or the Council as the Vice Chairperson of
a District Authority, except districts of Sialkot, Gujrat, Bahawalpur, Dera
Ghazi Khan, Faisalabad Gujranwala, Multan, Rawalpindi, Sahiwal and Sargodha:
provided that a Vice Chairperson of a District Authority shall not hold
office of Vice Chairperson of more than one District Authority;
(c)
the District Mayor of a District Council and City Mayor of Metropolitan
Corporation, as the Chairperson and Vice Chairperson respectively in the
districts of Sialkot, Gujrat, Bahawalpur, Dera Ghazi Khan, Faisalabad,
Gujranwala, Multan, Rawalpindi, Sahiwal and Sargodha ;
(d)
Deputy Commissioner of the concerned District or his nominee not below
BS-18 as member;
(e)
Chief Executive Officer of the District Authority as member and
Secretary of the Executive Board;
(f)
Director or Deputy Director of the Directorate General as member;
(g)
a representative of the Commissioner of the Division concerned not below
BS-18 as member;
(h)
two experts as members including one woman having qualification and
experience as given in subsection (3) of section 14 of this Act to be nominated
by the Chairperson of the Authority; and
(i)
District Attorney of the concerned district as member.
(2) The District Authority
shall be responsible for management and supervision of the respective devolved
office and its public service delivery.
(3) The District Authority
shall be a body corporate having perpetual succession and a common seal, with
power to acquire and hold property and enter into any contract and may sue and
be sued in its name.
(4) The Departmental District
Head of each devolved district level office of the respective Government
Department shall be the ex-officio Chief Executive Officer of the Authority.
(5) The Chief Executive
Officer shall be the Principal Accounting Officer of the Authority and shall
perform such functions as are mentioned in this Act or as may be prescribed or
as may be delegated by the District Authority or as the Government may assign.
(6) The District Office of
each devolved district level office of the respective Government Department
shall be the secretariat of the respective District Authority.
(7) The Authority shall
receive its funds from Provincial Budget, directly from Finance Department.
27. Performance of functions
by the District Authorities.– (1) The respective District
Authority shall perform all the functions of the district level office
of the respective Government Departments devolved on the local government to
carry out purposes of this Act.
(2) In particular and without prejudice to the generality of the
foregoing powers, a District Authority shall:
(a) establish, manage and
supervise all the facilities and institutions of the respective devolved
office;
(b) approve the budget of the
Authority and allocate funds to the institutions under its administrative
control;
(c) provide stewardship,
ownership and oversight of service delivery of the devolved office within the
policy framework given by the Government;
(d) coordinate planning and
allocate finances for provision of service delivery at District level;
(e) develop linkages between
private and public sectors for enhancing access and coverage of service
facilities to the general public and improving quality of these services;
(f) coordinate emergency
response during any natural calamity or emergency;
(g) ensure human resource
management and capacity development of service delivery personnel under the
policy framework given by the Government;
(h) ensure performance based contracts with service delivery managers
as per prescribed indicators;
(i) monitor, exercise
oversight and performance evaluation of service delivery managers as per agreed
performance indicators either directly or through a third party;
(j) liaison with the
Government for technical and logistic support in case of any emergency or
disaster;
(k) implement policies and
directions of the Government including achievement of key performance
indicators set by the Government for the respective devolved function;
(l) ensure implementation
of minimum service delivery standards, infrastructure standards, as prescribed
by the Government; and
(m) perform any other
function as may be assigned by the Government.
(3) In the performance of
their functions, the District Authorities shall also be bound and be guided by
the policies and instructions issued, from time to time, by the Government.
Chapter – X
Mode of Discharge of
Functions by the local governments – Agency Arrangement and Joint Authorities.
28. Discharge of functions by
local governments.–
(1) Subject to subsection (2), a local government may discharge its
functions through one or more of the following means:
(a) an officer or servant of
the local government;
(b) a joint authority
established under this Act;
(c) another local government
by mutual agreement;
(d) an office, authority or
agency owned or operated by the Government by mutual agreement; and
(e) by otherwise contracting
out.
(2) No local government shall
contract out any public service which constitutes or involves the exercise of
power to award administrative or other penalties, interferes with or otherwise
affects the liberty of an individual, involves the power to enter, search or
seize any property, or power or duty to enforce any law.
29. Delegation of functions
to Union Councils.– (1) A Metropolitan Corporation and a District Council may, by a mutual
agreement, delegate one or more of its functions or one or more public services
relating to any such function, to a Union Council.
(2) In the performance of a
function or delivery of a public service delegated under subsection (1), the
Union Council, as the case may be, shall adhere to the general or specific
directions of the local government delegating that function.
30. Agency arrangements.– (1) A local government may, through a written agreement, make
arrangements with any other local government, or an office, Authority, agency
or company of the Government or the Federal Government, for performance of any
of its function.
(2) The expenses incurred for
carrying into effect the agreement under subsection (1) shall be defrayed by
the local government etc., for whom services are provided.
(3) In case of a disagreement
on the amount of expenses or the actual value of expenses to be paid or
received by a local government during a particular period, the expenses shall
be paid and received in such amount and in such manner as may be determined by
the Commission.
(4) Every local government
shall keep separate accounts for the purposes of this section in the prescribed
manner:
provided that arrangements made under this Act shall not diminish, in
any respect, the responsibility of a local government with regards to the
function or public service.
31. Establishment of joint authorities.– (1) Two or more local governments may, in the prescribed manner,
establish a joint authority for the provision of one or more of such public
services which relate to a function assigned to them under this Act.
(2) For the purpose to
oversee the functions of the joint authority, the constituting local
governments may notify a joint Committee.
32. Inter-agency coordination.– (1) A Deputy Commissioner shall, in relation to the district under his
charge:
(a) establish coordination
between the local governments and the Provincial or Federal agencies, in
respect of matter which relates to or affects the work of one or more
provincial or federal agencies in the district;
(b) establish coordination
between one or more local governments and a cantonment adjoining such local
government, for cooperation in respect of integrated services relating to
provision of sanitation, water supply, sewerage collection and disposal and
similar other services;
(c) advise local governments
on avoiding duplication by prioritization of works of similar nature being
undertaken by the Government or one or more local governments in the district;
and
(d) amicable settlement of
disputes among Union Councils or a Union Council with other Government agencies
in the district; and
(d) convey Provincial or
Federal Government initiative, direction or measure as principal representative
of the Government under the Punjab Civil Administration Act, 2017 (Act III of
2017).
(2) Every local government
shall generally cooperate with the Deputy Commissioner in performance of his
functions under this section.
(3) Where an act of the
Deputy Commissioner under subsection (1) is, in the opinion of the Head of a
local government, unfair or unreasonable, he may make a reference to the
Secretary.
(4) The Secretary may, after
having considered the reference and the related circumstances, issue
appropriate directions, to the Deputy Commissioner or take such other action in
respect of the matter as may, in his opinion, be just or expedient having
regards to the circumstances of the case.
Chapter - XI
Duties of Certain
Functionaries
33. Duties and powers of a
Head of the local government.–
(1) In addition to any other duty assigned to him under this Act or any
other law for the time being in force, a Head of the local government shall be
responsible for:
(a) ensuring that the
business of the local government is carried out strictly in accordance with
this Act and all other relevant laws for the time being in force;
(b) efficient, effective and
transparent functioning of the local government;
(c) accomplishment of
operational, developmental and fiscal objectives set out by the Council or as
the case may be by the Government;
(d) presenting annual report
on the performance of local government to the Council during each financial
year;
(e) representation of the
local government at civic or ceremonial functions;
(f) any other duty, as the
Council may, by a general or special resolution direct;
(g) any other duty as may be
assigned to him by the Government; and
(h) general supervision and
control over officers of the local government for the above purposes.
(2) At the end of each
calendar year or at such other appointed interval, the Head of the local
government shall evaluate the work done and results obtained by the Chief
Officer as against his duties and the manner in which he exercised his powers
under this Act and submit a report to the House and in case of unsatisfactory performance, House may send its recommendation
to the Secretary for appropriate action.
(3) A Head of the local
government shall have the right to be present and participate in the
proceedings of the House and exercise the right to address the House, its
committees or a sub-committees, but he shall not vote.
34. Duties and powers of a Speaker.– (1) In addition to any other duty assigned to him under this Act, a
Speaker shall:
(a) convene meetings of the
Council as required under this Act;
(b) preside over, and ensure
orderly conduct of meetings of the Council at which he is present;
(c) maintain record of
meetings of the Council; and
(d) constitute committees of
the Council under this Act and oversee their working.
(2) A Speaker shall, in
relation to the above duties, exercise such powers as are conferred upon him
under this Act or any other law for the time being in force.
(3) Without prejudice to the
provisions of subsection (2), a Speaker may, in
relation to above duties, direct a Councillor to abstain from or withdraw
immediately from a meeting, where in his opinion:
(a) the attendance of
meeting by that Councillor would constitute conflict of interest under this
Act; or
(b) if the Councilor’s
conduct, during the meeting, is grossly disorderly.
35. Duties of a Councillor.– While acting under this Act, a Councillor shall:
(a) serve the overall
interest of the local area which he represents; and
(b) ensure that there is no
conflict, or possible conflict between his private interest and honest
performance of his role of serving public interest.
36. Duties and powers of
Chief Officer.–
(1) In addition to any other
duty assigned to him under this Act or any other law for the time being in
force, a Chief Officer shall:
(a) work as the principal
accounting officer of the local government;
(b) assist and advise the
Head of a local government, Speaker, committees and sub-committees of the
Council in proper discharge of their duties under this Act;
(c) ensure timely, effective
and efficient implementation of local government policy and decisions;
(d) supervise and control
officers and servants of the local government and coordinate and synergize the
work of all offices of the local government;
(e) maintain financial and
administrative discipline and ensure that the business of the local government
is carried out strictly in accordance with the provisions of this Act and other
laws for the time being in force;
(f) enter into and manage
all contracts on behalf of a local government, with the approval of the Head of
a local government;
(g) undertake all
procurements on behalf of a local government;
(h) maintain records
pertaining to the functions of a local government;
(i) act for and on behalf of
a local government, in every action or other legal proceedings whether
instituted by or against the local government;
(j) assist relevant
authorities in the circumstances of emergency; and
(k) perform such other duties
as are assigned to him by the Government, Secretary, Head of a local
government, Council or a committee or sub-committee of the Council.
(2) A Chief Officer shall, in
relation to the above duties, exercise:
(a) such powers as are
conferred upon him under this Act or any other law for the time being in force;
(b) such powers of the local
government as are delegated upon him by the Council through a resolution; and
(c) such powers of the Head
of the local government as are delegated upon him by the Head of the local
government.
37. Attendance of Council
meetings by Chief Officer.–
The Chief Officer shall, when required by the Speaker, attend a meeting
of the Council or a committee or sub-committee of the Council and render such
advice or provide such assistance as may reasonably be required of him.
38. Personal responsibility
for acts done and expenditure incurred without lawful authority.– Every person exercising any authority for the purposes of this Act,
shall be personally responsible for:
(a) any act done by him
personally or done under his direction; or any loss, financial or otherwise,
suffered by a local government due to a decision made by him personally or
under his direction;
(b) any expenditure incurred
by him personally or incurred under his direction, if such action, direction,
or decision is taken or expenditure is incurred, without lawful authority or in
violation of any provision of this Act or any other law for the time being in
force.
Chapter - XII
Conduct of Business
39. Conduct of business.– (1) The business of a local government shall be conducted in the
prescribed manner.
(2) Any proceedings or
decision of a local government shall not be invalid merely because of a vacancy
or defect in the membership of the local government.
(3) A local government may
appoint committees consisting of such number of its members and other persons
to perform such functions and in such manner as may be prescribed.
(4) One half of the existing
membership of the House shall constitute quorum for a meeting and a decision
shall be taken by the majority of the votes of the members.
40. Meetings of the House.– (1) A local government shall, within three months of the assumption of
office, frame bye-laws for the conduct of its meetings.
(2) A meeting of a local
government shall be presided over by its Speaker.
(3) A local government shall
hold at least one meeting during a month.
(4) A meeting of a local
government shall be open to general public, except when a local government, by
simple majority, decides to consider any matter in a session attended
exclusively by its Councillors, officers and officials.
(5) The Chief Officer or an
officer authorised by him shall record minutes of
every meeting of the House and submit the same to the person who presided the
meeting for approval.
(6) The Chief Officer shall,
after approval, issue the minutes of a meeting under his signatures.
(7) The Speaker may, grant
observer status to teachers, physically disadvantaged persons, or any other
category of individuals or organizations to represent stakeholders, to enable
them to attend the proceedings of the House:
provided that such observer shall have no right to vote or interfere in
the proceedings of the House.
provided further that such observer shall have no right to speak except
with the prior permission granted by the Speaker before commencement of the
meeting.
41. Contracts.– (1) All contracts made by or on behalf of a local government shall be:
(a) in writing and expressed
to be made in the name of the local government;
(b) executed in such manner
as may be prescribed; and
(c) reported to the local
government by the Head of the local government in the meeting next following
the execution of the contract.
(2) A local government may
assign any of its functions to a public or private organization on such terms
and conditions as may be prescribed or enter into public-private partnership
for efficient performance of any of its functions.
PART 3
ELECTIONS, TERM OF OFFICES
AND RELATED MATTERS
Chapter - XIII
Authority for Local
Government Elections
42. Election Commission to conduct
local government elections.–
(1) All elections under this Act shall be conducted by the Election
Commission.
(2) The Election Commission
shall undertake such measures and make such arrangements as are necessary for
the conduct of elections in accordance with the law and in a just, fair and
transparent manner.
43. Elections Act to apply.– For the purpose of local government elections, the Elections Act shall,
as nearly as possible, apply to an election under this Act.
44. All authorities and
persons to assist the Election Commission.– (1) The Election Commission may require any person or authority in the
Province to perform such function or render such assistance as may be required
for the purposes of this Act.
(2) It shall be the duty of
all persons and authorities required to perform a function or render any
assistance under subsection (1) to perform such function or render such
assistance, in as much as may be reasonably possible.
(3) The Government shall make
available to the Election Commission the services of such of its officers and
servants as the Election Commission may require for the purposes of this Act.
Explanation: For the purpose of this section, any reference to an Authority shall
include an authority which is not owned or controlled by the Government.
45. Delegation of powers.– The Election Commission may delegate any of its functions or powers in
accordance with the Elections Act.
46. Election Commission to
regulate its own procedure.–
The Election Commission shall, subject to this Act and the rules,
regulate its own procedure for the conduct of elections under this Act.
Chapter - XIV
Election
Method, Franchise and Related Matters
47. Election Method.– (1) Election of local governments shall be held on party basis through
secret ballot on the basis of adult franchise, through Electronic Voting Machine (EVM) and I-voting, in the prescribed manner.
(2) The Head of a local
government, Deputy Mayor, or Vice Chairperson, and the Councillors to the
reserved seats shall be elected, as joint candidates, on the basis of simple
majority in terms of section 57.
(3) The general Councillors
shall be elected on closed list proportional representation basis in terms of
section 57.
(4) The Head of a local
government, Deputy Mayor, or Vice Chairperson, as the case may be, and all
Councillors on reserved seats shall be elected by eligible voters of the
respective electoral unit.
(5) Only a Political Party or
an Electoral Group shall be entitled to contest elections by fielding qualified
candidates for the office of Head of the local government, Deputy Mayor, or
Vice Chairperson, as the case maybe, and at least as many qualified candidates
for elections as there are seats of Councillors.
(6) No Political Party or an
Electoral Group shall be entitled to contest if it is unable to field qualified
candidates for all the categories of candidates under subsection (5).
(7) Where a Political Party
or an Electoral Group is contesting an election under this Act, its candidates
for the Head, Deputy Mayor, or Vice Chairperson, as the case may be, and
reserved seats, as joint candidates, and general Councillors shall contest election on the lists of the Political
Party or the Electoral Group prepared under subsections (8) and (9).
(8) A Political Party or an
Electoral Group contesting election under this Act shall indicate the names of
the candidates for seats of Head, Deputy Mayor or Vice Chairperson, as the case
may be, of a local government and Councillors for reserved seats, as joint
candidates, on a list which shall not be varied after expiry of the date for
submission of nomination papers for an election under this Act.
(9) A Political Party or an
Electoral Group contesting election under this Act shall indicate the names of
the candidates for seats of general Councillors on a list in ranking order in
which they may be elected on the basis of votes obtained by the Political Party
or the Electoral Group, on the basis of proportional representation.
(10) Subject to sub-section (7)
of Section 70, after expiry of the date fixed for submission of nomination
papers for an election under this Act, the list referred to in subsection (9)
shall not be varied by any Political Party or, as the case may be, any
Electoral Group in terms of ranking order of the candidates or the name of the
candidates by way of addition of a fresh name or omission of an existing name
in the list.
(11) Nothing in this section
shall prevent a Political Party or an Electoral Group from fielding additional
qualified candidates in ranking order to the seats of the Head of a local
government, Deputy Mayor, Vice Chairperson and Councillors, keeping in view any
possibility of rejection of nomination papers to avoid disenfranchisement, or
for filling casual vacancies during the term of the Council for any reason.
(12) The Speaker of a local
government, except Union Council, shall be elected by the Councillors from
amongst themselves, in the prescribed manner, through simple majority of votes,
in the first meeting of the Council.
(13) Where the seat of the
Head of a local government or Deputy Mayor or Vice Chairperson, as the case may
be, the seat of the Speaker and a Councillor falls vacant during their term of
office, they shall be elected in the manner given in sections 69 and 70 of this
Act.
48. Opposition Leader.– The Councillors representing majority of opposition in the House shall
soon after assumption of their office, through written intimation to the Speaker,
nominate the opposition leader in the House to represent them.
49. Electoral units.– (1) The entire local area of a local government shall constitute one
multi-member electoral unit for elections to the respective local government.
(2) The Election Commission
shall, at least forty
five days prior to the date fixed for the election, notify
electoral units in the official Gazette.
(3) The electoral units
constituted under this section shall remain valid for every subsequent election
under this Act unless altered by the Election Commission subsequent to review
of local areas under this Act.
50. Enlistment of an
Electoral Group.– (1) The Election Commission shall, through public notice, specify the
dates for enlistment of Electoral Groups of a local government, with the office
of the Election Commission for election under this Act.
(2) The Head of a proposed
Electoral Group may, in the prescribed manner, apply for enlistment of the
Electoral Group, by submitting a list of his members of the Electoral Group
which shall not be less than the total seats of Head, Deputy Mayors or Vice
Chairpersons as the case may be, and Councillors including reserved seats for
the local government, for which his Electoral Group wishes to contest election.
(3) For enlistment of an
Electoral Group, a non-refundable fee of one thousand rupee per member shall be
deposited along with the application for enlistment.
51. Electoral rolls.– The Election Commission shall use the electoral rolls prepared under the
Elections Act for elections under this Act.
52. Right to vote.– (1) No person shall be eligible to vote in an electoral unit unless his
name, for the time being, appears in the electoral roll of that electoral unit.
(2) A voter shall be entitled
to cast only one vote for the Political Party or the Electoral Group,
representing candidates of his choice for election of a local government.
Chapter - XV
Conduct of
Elections
53. Notification of election
date and call up for election.–
(1) Through an order published in the official Gazette, the Election
Commission shall, after consultation with the Secretary, fix a date or several
dates for elections to one or more electoral units under this Act:
(2) The Election Commission
shall thereby call upon:
(a) the voters of the
electoral unit to elect the Head of the local government, Deputy Mayors or Vice
Chairperson as the case maybe, and Councillors; and
(b) the Councillors, other
than the Councillors of the Union Council, to elect the Speaker.
54. Only nominated and
eligible persons allowed to contest elections.– (1) No person shall be nominated for an election under this Act unless
he is otherwise eligible for an election in terms of section 61 of this Act.
(2) No person, shall contest
an election under this Act unless a Political Party or an Electoral Group
includes that person as candidate for Head of the local government, Deputy
Mayor, Vice Chairperson or a Councillor on its lists of candidates.
(3) The Returning Officer
shall not accept the nomination of a candidate unless the amount as may be
prescribed, is paid in cash or in the form of a bank draft or pay order in
favour of the Election Commission by or on behalf of the candidate as
candidature fee.
(4) The candidature fee paid
by or on behalf of the candidate shall be non-refundable.
(5) A candidate may pay only
one candidature fee even if such candidate is nominated for the same seat by
more than one nomination papers.
(6)
The Returning Officer shall, in the
prescribed manner, after public notice and hearing the person nominated as a
candidate or a person authorized by him in this behalf, satisfy himself that
each nomination has been properly made and the person nominated as a candidate
is eligible to be a candidate for the relevant election, under this Act.
55. Manner of conducting Elections.– Subject to the provisions of this Act and the Elections Act, the
elections under this Act shall be conducted in the prescribed manner.
56. Code of Conduct for elections.– (1) The Election Commission shall by an order published in the official
Gazette, issue a Code of Conduct for candidates, election agents, polling
agents and other relevant persons for every election under this Act.
(2) The Code of Conduct
issued under subsection (1) shall, among other things, define the consequences
of violation of its provisions and the authority responsible for taking
cognizance of such violations and their powers for such purpose.
57. Returned Candidates.– (1) The candidates to the office of the Head of the local government,
Deputy Mayor or Vice Chairperson as the case may be, and Councillors to the
reserved seats, as joint candidates, appointed by the Political Party or the
Electoral Group, securing highest number of votes in the respective electoral
unit shall stand elected.
(2) The candidates to the
office of a general Councillor shall be elected in the ranking order given by
the Political Party or the Electoral Group on whose list they are contesting,
in proportion to the votes secured by that Political Party or, as the case may
be, Electoral Group in the respective electoral unit.
(3) Where there is equality
of votes between two or more political parties or Electoral Groups obtaining
highest votes, the Returning Officer shall recount the votes and in case
equality still exists, forthwith draw a lot in respect of such political
parties or Electoral Groups and on whom the lot falls, its candidate shall be
declared elected.
(4) The Councillor of a local
government, except a Union Council, securing highest number of votes of the
Councillors, in the first meeting of the Council shall stand elected as the
Speaker.
58. Announcement of Results. – Immediately after the
counting of votes, the results of every election under this Act shall be
announced through a public notice by the Returning Officer which shall be
followed by a notification in the official Gazette by the Election Commission.
59. Election to be called in
question only before Election Tribunal.– (1) No
election under this Act shall be called in question except through an election
petition made to the Election Tribunal constituted under the Elections Act.
(2) The Election Tribunal
shall follow procedures and exercise powers under the Elections Act.
60. Notification of vacancy
and bye-election.– (1) The Election Commission shall, on receiving information, within
fifteen days from the date of receipt of information, notify a vacancy occurred
due to death, resignation, disqualification or removal of a Head of a local government,
Deputy Mayor, Vice Chairperson, Speaker or Councillor and publish the same in
the official Gazette, and thereafter, Election
Commission shall notify Election Programme and also publish the same in the
official Gazette.
(2) Election Commission shall
notify returned candidates elected under section 69 and 70 of the Act.
Chapter - XVI
Qualifications and Term of
Office of Candidates
61. Qualifications and disqualifications.– (1) A person shall be eligible to be a candidate for the office of a
Head of a local government, Deputy Mayor, Vice Chairperson, Speaker, or a
Councillor if:
(a) his name appears for the
time being in the electoral roll of the electoral unit from where he is a
candidate; and
(b) he, on the last day fixed
for the filing of nomination papers for that election, is not less than twenty one years of age in case of a Councillor, and not
less than twenty five years of age in case of a Head or a Deputy Mayor or Vice
Chairperson or a Speaker:
provided that the age for a candidate for the seat reserved for Youth
shall not be less than eighteen years and more than thirty
two years.
(2) Without any prejudice to
the provisions of subsection (1), no person shall be eligible to be a candidate
or to hold the office of a Head of a local government, Deputy Mayor, Vice
Chairperson, Speaker, or a Councillor, if:
(a) he is not eligible or
becomes ineligible to be enrolled as a voter under the Elections Act;
(b) he has been convicted by
a Court of competent jurisdiction on a charge of corrupt practice, moral
turpitude or misuse of power or authority under any law for the time being in
force unless a period of five years has elapsed;
(c) he is under contract for
work to be done or goods to be supplied to that local government or has
otherwise any pecuniary interest in its affairs;
(d) he is in or enters into
the service of Pakistan, or any statutory body or other body which is set up,
or owned or controlled by the Federal Government or
Government, or a local government in Pakistan, or in which the Government or a local government has controlling share
or interest or he is or becomes a salaried official of a public or statutory
corporation;
(e) he holds an office of
profit in the service of Pakistan other than an office which is not a
whole-time office remunerated either by salary or by fee, or the office of Lumbardar, whether called by this or any other title, or
the office of Qaumi Razakar;
(f) he has been dismissed,
discharged or compulsorily retired from the service of Pakistan, or the service
of a local government or a public or statutory corporation on the charge of
misconduct or a corrupt practice unless a period of three years has elapsed;
(g) he has obtained a loan
for an amount of ten hundred thousand rupees or more, from any bank, financial
institution, cooperative society or cooperative body in his own name or in the
name of his spouse or any of his dependents, which stands unpaid for more than
one year from the due date, or has had such loan written off unlawfully;
(h) he, his spouse or any of
his dependents has not paid any tax, fee or any other charge payable to the
Government or a local government, or any amount exceeding ten thousand rupees
due upon him, his spouse or any of his dependent for the use of any service such
as Pakistan Telecommunication Company Limited, electricity, gas or water for
over six months; and
(i) he is declared to have
defected his Political Party or, as the case may be, the Electoral Group under
this Act.
(3) Where a person contesting
an election to any office in the local government claims to be a Muslim, he
shall submit to the Returning Officer a declaration given in the Third Schedule
along with his nomination papers for the election.
provided that a person contesting election to the Head of Metropolitan
Corporation and District Council shall submit declaration of assets and
liabilities alongwith his nomination papers.
62. Defection from a
Political Party or Electoral Group.– (1) The Head of a Political
Party or an Electoral Group may, after giving him an opportunity to show cause,
declare a Head of the local government, Deputy Mayor, Vice Chairperson, Speaker
or a Councillor to have defected his Political Party or, as the case may be,
the Electoral Group who, after having been elected on its list:
(a) joins another Political
Party or an Electoral Group; or
(b) votes or abstains from
voting in the Council contrary to any direction of the Political Party or, as
the case may be, Electoral Group in relation to the election of the Speaker, or
a vote for removal of the Head of the local government, Deputy Mayor, Vice Chairperson,
or a Speaker.
(2) After having declared a
Councillor to have defected, the Head of the Political Party or, as the case
may be, Electoral Group shall forthwith forward a copy of the declaration to
the Election Commission.
(3) Where the declaration is
confirmed by the Election Commission after due notice and inquiry, the Head of
the local government, Deputy Mayor, Vice Chairperson, Speaker or Councillor
referred to in subsection (1) shall cease to hold office.
Explanation: For the purpose of this section, the Head of a Political Party or
Electoral Group shall mean any person by whatever name called, declared as such
by the Political Party or, as the case may be, Electoral Group.
63. Effect of being found to
be disqualified to be a candidate, Head of the local government, Deputy Mayor,
Vice Chairperson, Speaker, or a Councillor.– (1) A person, on being found by the
Election Commission to have filed nomination papers for a local government
election or holding the office of a Head of the local government, Deputy Mayor,
Vice Chairperson, Speaker or a Councillor, while knowing that he is not
eligible to file such nomination papers or to hold such office; or have made
election expenses in excess of the prescribed limit; or have failed to file a
return on election expenses; or filed a return that contains particulars that
to his knowledge are false or misleading, shall:
(a) in case he is a
candidate to a local government election, stand disqualified from being a
candidate for the office of the Head of the local government, Deputy Mayor,
Vice Chairperson, Speaker or a Councillor, for a period of four years from the
date of disqualification.
(b) in case he is a Head of
the local government, Deputy Mayor, Vice Chairperson, Speaker or a Councillor
shall, cease forthwith to hold such office, and shall also stand disqualified
from being a candidate in the local government election, for a period of four
years from the date he ceased to hold such office.
(2) Any resident of the
relevant local area may make a written complaint to the Returning Officer or
the Election Commission to seek disqualification of a candidate from contesting
local government election or from holding office on any ground mentioned in
this section.
(3) Every order of the Returning
Officer or the Election Commission under this section shall be passed in
writing and after conducting inquiry as deemed appropriate and after affording
right of hearing to such candidate or office holder as the case may be.
64. Bar against double membership.– (1) No person shall
simultaneously hold the office of a Head of the local government, Deputy Mayor,
Vice Chairperson, Speaker, or a Councillor in more than one local governments.
(2) No person shall
simultaneously hold more than one such elected offices in the same local
government except a Councillor who is elected as the Speaker.
(3) No person shall
simultaneously hold the office of a Head of the local government, Deputy Mayor,
Vice Chairperson, Speaker or a Councillor and a Member of the Parliament or
Provincial Assembly.
(4) Where a Head of the local
government, Deputy Mayor, Vice Chairperson, Speaker, or a Councillor is elected
to any other such political office, his seat held in the local government shall
become vacant, immediately upon taking oath of such office.
65. Term of office of the
Council, Head of the local government, Deputy Mayor, Vice Chairperson, Speaker
or a Councillor.–
(1) Subject to this Act, the term of office of a Council shall be four
years commencing on the date on which it holds its first meeting.
(2) The term of office of
every Head of the local government, Deputy Mayor, Vice Chairperson, Speaker,
and Councillor shall, unless removed earlier under this Act, be the same as
that of the term of office of the Council.
66. First Meeting and Oath of
office.– (1) As soon as may be but not later than one month after the
notification of results of an election by the Election Commission, the date or
several dates of the first meeting of the Councils shall be fixed by the
Election Commission.
(2) A person elected as a
Head of the local government, Deputy Mayor, Vice Chairperson, Speaker or
Councillor shall, before assuming his office, make and subscribe to an oath,
appropriate to his office, in the form set out in the Fourth Schedule.
(3) The Election Commission shall
nominate the Presiding Officers who shall administer the oath.
67. Effect of failure to take
oath.– (1) The Election Commission shall, after giving an opportunity to show
cause, disqualify an elected Head of the local government, Deputy Mayor, Vice
Chairperson, Speaker or Councillor from holding office, who fails to take
oath within sixty days from the date of
first meeting of the Council.
(2) Chief Officer or any
resident of the relevant local area may make a written complaint within one
month to the Election Commission for disqualification of a Head of the local
government, Deputy Mayor, Vice Chairperson, Speaker or Councillor under this
section.
68. Resignation by a Head of
the local government, Deputy Mayor, Vice Chairperson, Speaker or Councillor.– (1) Any Head of the local government, Deputy Mayor, Vice Chairperson,
Speaker or Councillor of the Metropolitan Corporation or District Council may,
at any time, resign from his office by writing under his hand to the respective
Chief Officer, whereupon his resignation shall be deemed to have been accepted
and effective forthwith.
(2) The
Chief Officer upon receipt of resignation under sub-section (1) shall forthwith
forward it to the Deputy Director of the Directorate in the district concerned,
who shall forward it to Secretary.
(3) The Chairperson, Vice Chairperson, or Councillor of Union Council
may, at any time, resign from his office by writing under his hand to the
respective Secretary of Union Council, whereupon his resignation shall be deemed
to have been accepted and effective forthwith.
(4) The
Secretary of Union Council upon receipt of
resignation under sub-section (3) shall forthwith forward it to the Assistant
Director of the Directorate in the tehsil concerned, who shall forward it to
Secretary.
(5) The Secretary upon
receipt of resignation under sub-section (2) or (4) shall immediately send the
copy of resignation to the Election Commission which shall, by notification to
be issued within fifteen days from the date of receipt of resignation, declare
the office of the resigning Head of the local government, Deputy Mayor, Vice
Chairperson, Speaker or Councillor to be vacant from the date of receipt of
resignation.
(6) Notwithstanding the
resignation of a Head of the local government, Deputy Mayor, Vice Chairperson,
Speaker or Councillor under subsections (1) and (3), any proceedings for his
removal under this Act, if already initiated, shall not abate as the same may result
in his disqualification.
69. Fresh elections in case
of casual vacancy in the office of a Speaker.– (1) If the office of
the Speaker of a Council, other than a
Union Council falls vacant during the term of the Council due to his removal on
the basis of misconduct, disqualification or any other reason, the Election
Commission shall hold a fresh election to the office of the Speaker of the
Council.
(2) The Speaker of a Council
elected through a fresh election under this section shall, unless removed
earlier under this Act, hold office only for the residual term of the Council.
70. Filling up of casual
vacancies of Head, Deputy Mayor, Vice Chairperson and Councillors.– (1) If, for any reason, the office of a Head in a Metropolitan
Corporation or a District Council falls vacant during the term of a Council,
the Deputy Mayor nominated by the Political Party or the Electoral Group to
which the Head belonged, shall stand elected as Head.
(2) If, for any reason, the
office of a Deputy Mayor of a Metropolitan Corporation or a District Council
falls vacant, the councillor nominated by the
Political Party or the Electoral Group to which the Deputy Mayor belonged,
shall stand elected as Deputy Mayor.
provided that in case of District Councillor, the nominated Councillor
shall be the voter of the respective Tehsil from which the Deputy Mayor
belonged.
(3) If, for any reason, the
office of a Chairman in a Union Council falls vacant during the term of a
Council, the Vice Chairman shall stand elected as Chairman.
(4) If, for any reason, the
office of a Vice Chairman falls vacant, the councillor
nominated by the political party or electoral group to which the Vice Chairman
belonged, shall stand elected as Vice Chairman.
(5) If, for any reason, the
office of General Councillor in a local government falls vacant during the term
of a Council, the candidate immediately below the last elected candidate in the
ranking order in the list of the political party or electoral group to which
the General Councillor belonged, shall stand elected.
(6) If, for any reason, the
office of a Councillor on reserved seat in a local government falls vacant
during the term of a Council, the additional candidate from the list of the
political party or electoral group to which the Councillor on reserved seat
belonged, shall stand elected to that office.
(7) If at any time, the list
is exhausted, the concerned Political Party or Electoral Group may submit
additional names for any vacancy, which may occur thereafter.
(8) A Head, Deputy Mayor, Vice Chairperson or Councillor elected
under this section shall, unless removed earlier under this Act, hold office
for the residual term of the Council.
71. Power of the Chief
Minister to appoint an administrator.– On expiry of the term of a
Council, or otherwise pending the constitution of a new local government or a
Council, the Chief Minister shall, by an order published in the official
Gazette, appoint any of its officers to perform such functions and exercise such
powers and authority of the respective local government as may be specified in
that order.
PART 4
LOCAL GOVERNMENT FINANCE
AND PROPERTIES
Chapter - XVII
Local Government Finance
72. Funds of a local government.– (1) A local government shall establish a Local Fund, and all the
revenues received by the local government from the following sources shall be
credited to the Fund:
(a) the proceeds of taxes,
tolls, fees, rates or charges levied by the local government;
(b) grants made to or monies
received by the local government from the Government or other sources;
(c) rents and profits
payable or accruing to the local government from immovable property owned or
otherwise vested in or controlled or managed by it;
(d) proceeds or any other
profits from any investment;
(e) gifts, grants or
contributions to the local government by individual or institutions;
(f) income accruing from
markets or fairs regulated by the local government;
(g) fines and penalties
imposed under this Act;
(h) proceeds from other
sources of income which are placed at the disposal of the local government
under directions of the Government;
(i) all monies transferred
to the local government by the Government; and
(j) monies transferred by
another local government under this Act.
(2) The Government shall
transfer the grants of a local government in the shape of share of the local
government in the Punjab Finance Commission Award and share in the proceeds of
taxes, tolls, fees, rates or charges levied by the local government collected
by the Government to the Local Fund of the local government on monthly basis.
(3) Every local government
shall maintain a Public Account to place all revenues received by the local
government from the following sources:
(a) receipts accruing from
trusts administered or managed by the local government;
(b) refundable deposits
received by the local government; and
(c) deferred liabilities.
(4) A local government may
establish and maintain a separate account for any special purpose to which one
or more sources of revenue mentioned in subsection (1) or any part of these
sources or any specified portion of the Local Fund may be assigned.
(5) The separate account
under subsection (1) shall be maintained, administered and regulated as a Local
Fund.
73. Custody of Local Fund and
Public Account.– The monies credited to the Local Fund or the Public Account of a local
government shall be kept and operated in separate accounts of a local
government in such manner as may be prescribed.
74. Charged expenditure.– (1) The following expenditure shall be charged upon the Local Fund:
(a) the money required for
repayment of loans;
(b) the money required to
satisfy any judgment, decree or award against the local government;
(c) the money required by
the Government to contribute for deferred liabilities of the local government;
and
(d) such other expenditure of
local government as may be directed by the Secretary, in case of calamity or
urgency.
(2) If any expenditure is a
charge upon the Local Fund and is not paid, the Secretary may, by order, direct
the person having the custody of the respective Local Fund to pay such amount
from the Local Fund.
75. Application of Local Fund.– (1) The monies credited to a Fund shall be expended by a local
government in accordance with the annual budget and supplementary budget
approved by its Council.
(2) A local government may transfer approved
budgeted amounts to any local government or Community Council or Panchayat or
Community Based Organization, within its local area, for expenditure for the
purpose of carrying out a project service or activity transferred to, or
managed by, the recipient local government, Community Council, Panchayat or
Community Based Organization, in the prescribed manner.
(3) The application of Local
Fund shall be subject to the budgetary constraints and according to the minimum
prescribed ratio of development and non-development expenditures.
(4) The development budget
shall be prioritized in accordance with the bottom up
planning system as laid down in section 78:
provided
that:
(a)
not more than twenty percent of the development budget shall be set
apart for utilization in accordance with the provisions of section 78; and
(b)
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.
(5) Every local government shall allocate
not less than twenty percent of its budget for maintenance and repair of
existing infrastructure and provision of earlier initiated services.
(6) Every local government shall allocate
two percent of its budget for sports and cultural activities.
(7) Where a new local government
is to take over during a financial year as a result of fresh elections, the
outgoing local government shall not spend funds or make commitments for any
expenditure under any Demand for Grant or Appropriation in excess of eight
percent per month of the budgeted funds for the remainder of its term in office
in that financial year .
(8) In every budget, a
provision may be made for payment of such performance incentive bonuses as may
be prescribed.
(9) Expenditure from the
Fund of a local government on total establishment expenditures in a financial
year shall not increase more than ten percent in total from the establishment
expenditures of the previous year:
provided that this
subsection shall not apply to a general salary increase of existing schedule of
establishment prescribed by the Government.
76. Budget preparation.– (1) The annual budget for a local government shall contain estimates
of:
(a) grants from the
Government;
(b) amounts available in the
Local Fund;
(c) receipts for the next
year; and
(d) expenditure to be
incurred for the next year.
(2) The Government shall,
sufficiently before the beginning of each financial year, notify the
provisional share which may be credited to the Local Fund of a local government
from the Provincial Allocable Amount.
(3) The functionaries of a
local government may re-appropriate budget in accordance with the powers of
re-appropriation delegated to them by the local government, and at the end of
the financial year, a revised budget shall be submitted to the local government
for approval.
(4) A demand for a grant
shall not be made except on the recommendation of the Head of local government.
(5) Conditional grants from
the Government or other local government shall be shown separately in the
budget and shall be governed by the conditions on which such grants were made.
(6) Before the commencement
of a financial year each local government shall, for its Fund, prepare in the
prescribed manner, a budget for that year in conformity with the provisions of
section 78.
(7) A local government shall
prepare the budget in the prescribed manner and in accordance with the chart of
accounts notified by the Auditor-General of Pakistan.
77. Approval of budget.– (1) Before the commencement of the next financial year, the Head of
local government shall present the budget for consideration and approval of the
local government.
(2) The local government may
discuss the charged expenditure but shall not vote on such expenditure.
(3) The budget of a local
government shall, subject to quorum, be approved by simple majority and the
local government shall not take up any other business during the budget
session.
(4) Secretary may review
approved budget of a local government, and if found contrary to the budget
rules, may require the local government to rectify it.
(5) A budget shall not be
approved if the sums required to meet estimated expenditure including previous
liabilities and commitments exceed the estimated receipts.
(6) In case a budget is not
approved by a local government before the commencement of the financial year to
which it relates, the local government shall spend money under various objects,
on pro-rata basis in accordance with the budgetary provisions of the preceding
financial year for a period not exceeding thirty days.
(7) A local government shall
not spend funds or make commitments for any expenditure under any demand for
grant or appropriation in excess of eight percent of the amount budgeted in the
preceding year within the period of thirty days mentioned in subsection (6).
(8) In case, a local
government fails to pass the budget within the extended period as specified in
subsection (6), the Secretary shall prepare, approve and authenticate the
budget of the local government for full year.
(9) After approval of the
budget by a local government, the Head of local government shall authenticate
under his signature a schedule specifying:
(a) grants made or deemed to
have been made by the local government; and
(b) sums required to meet the
expenditure charged upon the Local Fund.
(10) The budget authenticated
under subsection (8) shall be laid before the local government but shall not be
open to discussion or vote.
(11) The authenticated budget
shall be communicated to the local government functionaries, accounts
officials, the Secretary and posted on the official website or a portal
designated by the Department for this purpose.
(12) At any time before the
expiry of the financial year to which the budget relates, a revised budget for
the year may, if necessary, be prepared and such revised budget shall be
approved in the manner as that of annual budget.
78. Bottom up planning and the community ownership incentive system.– (1) Before the beginning of the financial year the respective local
government shall lay down and announce the classification of development
schemes to be undertaken exclusively under the provisions of this section.
(2) A local government may grant to the
Community Based Organization within its local areas, up to eighty percent 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:
(a) the prescribed
departmental procedure for estimating the cost of the scheme has been followed;
(b) the estimating officer certifies
that the scheme meets the requirements laid down by law;
(c) the Community Based
Organization has deposited its share of the cost of the development scheme with
the concerned local government; and
(d) the complete departmental
estimates and the proof of deposit of the contribution of Community Based
Organization are attached.
(3) The grant referred to in subsection (2)
shall be spent from the reserved amount of the annual development budget as
provided in section 75.
(4) A cut-off date for submission of all
schemes proposed by the Community Based Organization 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 subsection (4) by
classification including the total amount of contributions for a particular
classification of schemes.
(6) A second statement shall determine
contributions for a particular classification of schemes as a ratio of the
total contributions 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.
(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 Community Based Organization in a classification until all the schemes
in the classification are selected or the funds allocated for that particular
classification in the amount determined in subsection (6) are exhausted.
(8) The funds for Community Based
Organization under section 75 shall be communicated to the authorized officer
under subsection (5).
(9) The identified schemes
shall be included in the budget before submission to the concerned Council.
(10) The statement referred to
in subsection (7) shall be approved by a simple majority of the members of the
respective Council in a budget session to be held by the respective Council.
(11) The schemes approved by
the respective Councils shall be carried out as prescribed.
(12) Subject to subsection
(10), the Accounts Official of the respective local government shall release
funds in the prescribed manner in accordance with the schedule of expenditure.
79. Honoraria and allowances.– A local government may, subject to the specified limitations approved
by the Government, make budgetary provisions for honoraria and allowances of
the Head of local government, Deputy Mayor, Vice Chairperson, Speaker,
Opposition Leader or a Councillor of the local government.
Provided that
remuneration and allowances would be allowed only in one capacity.
80. Accounts.– (1) The accounts of all receipts and expenditures of a local government
shall be kept in such form and in accordance with such principles and methods
as may be prescribed by the Auditor-General of Pakistan.
(2) In addition to maintenance
of accounts by a local government, Provincial Director, Local Fund Audit of the
Government shall maintain the accounts of the local governments, other than the
accounts of the Union Council, and devolved offices managed under the
respective District Local Government Authority.
(3) The Secretary of a Union
Council, shall maintain the accounts of the Union Council.
(4) Accountant General and
District Accounts Officer of the District shall maintain the accounts of the
devolved offices managed under the respective District Local Government
Authority.
(5) The Provincial Director,
Local Fund Audit of the Government shall pre-audit all the payments from the
Local Fund of a local government other than the payments from the Local Fund of
the Union Council and accounts of the devolved offices managed under the
respective District Local Government Authority.
(6) The Secretary of the
Union Council shall pre-audit all the payments from the Local Fund of the Union
Council.
(7) The Accountant General and
the District Accounts Officer shall pre-audit all the payments from the Local
Funds of the devolved offices managed under the respective District Local
Government Authority.
(8) A local government shall
not withdraw or disburse money from the Local Fund unless it is pre-audited in
the prescribed manner.
(9) The Provincial Director,
Local Fund Audit and the Accountant General shall, by fifteenth day of July,
prepare an annual statement of receipts and expenditures of the accounts of
local governments and District Local Government Authorities, for the preceding
financial year, and shall transmit the statement to the Government and the
concerned local government.
(10) A copy of the annual
statement of accounts shall be displayed at a conspicuous place in the office
of the local government for public inspection, and all objections or
suggestions concerning such accounts received from the public shall be
considered by the local government and appropriate decision shall be taken.
81. Audit.– (1) The Auditor-General of Pakistan shall, on the basis of such audit
as he may consider appropriate or necessary, certify the accounts of a local
government for each financial year.
(2) The Auditor-General shall
audit the accounts of a local government in such form and manner as may be
deemed appropriate.
(3) The audit report of the
Auditor-General shall be considered by the Public Accounts Committee of the
Provincial Assembly of the Punjab.
(4) If in the opinion of the
Government, it is necessary in public interest to have a special audit of a
local government, it may cause it to be conducted by Auditor General of
Pakistan or the Provincial Director Local Fund Audit .
(5) After the receipt of
special audit report of a local government, the Government may, after enquiry
by the Punjab Local Government Commission, take appropriate action on the
recommendations of the Commission.
82. Local government debt.– (1) A local government shall not incur any debt without previous
approval of the Government.
(2) A local government may
invest surplus funds, if any, in such securities and financial institutions, as
may be approved by the Government.
Chapter - XVIII
Punjab Local Government
Finance Commission
83. Local Government Finance Commission.– (1) The Government shall constitute the Punjab Local Government Finance
Commission to perform functions under this Act.
(2) The Finance Commission
shall comprise of members including the Chairperson as under:
(a) Minister in charge of
Finance Department of the Government, who shall also be the Chairperson of the
Finance Commission;
(b) Minister in charge of the
Department, who shall be the co-Chairperson of the Finance Commission;
(c) four members of the
Provincial Assembly of the Punjab, out of whom two shall be appointed by the
leader of the house and the other two by the leader of the opposition in the
Assembly;
(d) Secretary to the
Government, Finance Department, who shall also be the Secretary of the Finance
Commission;
(e) Secretary of the
Department;
(f) Secretary to the
Government, Planning and Development Department;
(g) four experts including
one woman, on local governments and local government finance appointed in terms
of section 86 of this Act; and
(h) four Heads of the local governments to be nominated by the Chief Minister.
(3) In case of absence of the
chairperson for any reason, the co-chairperson shall chair the Finance
Commission and in case he is also absent, the present members shall elect one
of them to chair the Finance Commission for the duration of his absence.
(4) The Finance Commission
may co-opt any other person for advice in relation to a particular matter under
its consideration; however, the co-opted member shall have no right of vote.
(5) No proceedings or act of
the Finance Commission shall be invalid merely on ground of existence of a
vacancy or defect in composition of the Finance Commission.
(6) The members of the
Finance Commission shall be paid such remuneration and other allowances as the
Government may determine from time to time.
(7) The remuneration and
other allowances of a member of the Finance Commission shall not be varied to
his disadvantage during his term in office.
84. Term of office and premature
removal of certain members.–
(1) The Ministers and Secretaries referred to in section 83 of this Act
shall be ex-officio members of the Finance Commission.
(2) A Head of the local
government referred to in section 83 of this Act shall hold the office of
member of Finance Commission for four years from the date of assumption of
office.
(3) An expert member referred
to in section 83 of this Act shall hold office for four years from the date of
assumption of office.
(4) The Chief Minister may, after
due notice and inquiry in the prescribed manner, remove any member of the
Finance Commission, not being the member referred to in subsection (1), during
the tenure of his office on ground of inefficiency, misconduct, misuse of
office or inability to perform functions on account of bad health or physical
or mental incapacity.
(5) Any member of the Finance
Commission, not being the member referred to in subsection (1), may resign from
his office by writing under his hand to the Chairperson of the Commission.
85. Casual vacancies.– (1) Where the position of a member, not being the Minister or a
Secretary to the Government, becomes vacant on account of his resignation,
removal, death or for any other cause, the Government shall appoint a person to
fill this vacancy in the same manner as was applicable for the selection of
that member.
(2) A person appointed under
subsection (1) shall hold office for the remainder of the term of office of the
member to whom he replaces.
86. Eligibility for appointment
as an expert member.–
(1) A person shall be eligible for appointment as an expert member under
section 83 of this Act if:
(a) he has at least sixteen
years education in a discipline related to the functions of the Finance
Commission, possesses adequate knowledge of economics, public finance,
accounts, or working of the local governments in general with at least
fifteen-year experience in the aforesaid or any other related affairs;
(b) he is, for the time
being, qualified to be a candidate for an election under this Act;
(c) he is not in the service
of Pakistan or any office or body which is set up, or owned or controlled by
the Government, or a local government in the Punjab, or in which the Government
or a local government has a controlling share or interest or otherwise holds
any office of profit in the Government;
(2) Subject to the provisions
of subsection (4), a person who has previously remained as an expert member
shall be eligible for re-appointment as a member of the Finance Commission.
(3) No Head of the local government
shall be eligible for appointment as a member of the Finance Commission if he
has previously remained its member as a Head of the local government during the
preceding four calendar years.
(4) An expert member or a
Head of the local government who has previously been removed from the office of
a member of the Finance Commission under subsection (4) of section 84 of this
Act shall not be eligible for appointment as a member of the Finance Commission
subsequently.
87. Oath of office of members
of Finance Commission.–
Before entering upon office, every member of the Finance Commission
shall make an oath in the form set out in the Fourth Schedule before Governor
of the Punjab.
88. General functions of the
Finance Commission.–
(1) In addition to any other work assigned to it under this Act or any
other law for the time being in force, the Finance Commission shall:
(a) establish formulae for
determining the size of provincial allocable amount and the share of local
governments from this amount;
(b) oversee and report upon
the transfer of share of local governments from the provincial allocable amount
in accordance with the formulae referred to in clause (a);
(c) advise the Government or
a local government on matters relating to fiscal transfers to and fiscal
performance of local governments;
(d) advise the Government or
a local government on specific matters, objections or claims in relation to
fiscal transfers;
(e) support local
governments in effecting improvements in their fiscal capacity and performance,
better budget management and increased adherence to financial and procurement
laws;
(f) fix an enhanced incidence
of a local tax, fee, rate, toll, rent or other charge of a local government if
it is under fiscal distress;
(g) recommend the schedule,
nature and structure of independent audits of the local governments;
(h) monitor fiscal health of
local governments on an annual basis in particular their fiscal effort and
performance; their ability to meet budgetary and development targets, their
debt management and to make a determination of fiscal distress defined in terms
of the ability of a local government to balance their budgets by ensuring that
the sum of estimated net revenues and appropriated fund balances are sufficient
to cover appropriations and other liabilities including pension and general
provident fund liabilities;
(i) during the first month
of each financial year, present to the Government and all local governments in
the Punjab an annual report on fiscal performance of local governments during
the previous financial year which shall, among other things, include an
analysis of the matters referred to in this subsection and fiscal transfers
made to the local governments and own resources raised by them and their
performance in meeting budgetary and performance objectives.
(2) The report referred to in
clause (h) and (i) of subsection (1) shall be laid before the Provincial
Assembly.
(3) The Finance Commission
shall not be subject to or take cognizance of the directions of any person as
to the manner in which it shall discharge its duties.
(4) The Secretary shall,
during the exercise of its powers under this Act, shall have regard to the
recommendations, reports and advice of the Finance Commission in relation to
the matters mentioned under subsection (1).
Explanation: For the purpose of this
section, the term fiscal stress shall mean the condition under which a local
government is unable to generate sufficient receipts within the period under
question to meet its expenditure and other liabilities.
89. Right of local
governments to refer objections to Finance Commission.– (1) Where a local government has any objection on the sums to be
transferred or likely to be transferred to it or to any other local government
from provincial allocable amount under this Act, that local government may make
a reference to the Finance Commission.
(2) Every reference under
subsection (1) shall be made in writing and contain grounds of objection.
(3) The Finance Commission
shall, after due notice and inquiry, decide every reference made to it under
this section in not more than sixty days.
90. Procedure of Finance Commission.– (1) The Finance Commission shall, subject to this Act and the rules,
regulate its own procedure.
(2) All decisions of the
Finance Commission shall be made through a simple majority of votes of the
members present and voting on one member one vote basis.
(3) The quorum necessary for
transaction of business at an ordinary or special meeting of the Finance
Commission shall be one-half of the members holding office at the time out of
whom not less than two shall be the expert members.
(4) All meetings of the Finance
Commission shall be public unless the members present, by a simple majority
vote, decide to exclude public from the whole or part of the proceedings on the
ground that public information of the proceedings of its meeting shall be
prejudicial to public interest by reason of the confidential nature of business
to be transacted at that meeting or for such other special reasons as may arise
from the nature of business to be transacted or the proceedings at the meeting.
(5) The Finance Commission
shall exercise the same powers as are vested in a Civil Court under the Code of
Civil Procedure, 1908 (V of 1908) with regards to summoning and enforcing the
attendance of any person and compelling the production of documents and records
for the purposes of this Act.
91. Duty of local governments
and other public entities etc. to cooperate with Finance Commission.– (1) The Finance Commission may require the Government, a local
government, an agency owned or managed by the Government or a local government,
or any other person or authority in the Punjab to render assistance to it or to
provide all information which it reasonably requires for the purposes of this
Act.
(2) It shall be the duty of
the Government and all such local governments, public entities, or other
persons and authorities to render assistance or to provide information as is
required by the Finance Commission under subsection (1).
92. Secretariat of the
Finance Commission.–
(1) The Finance Commission shall have a secretariat comprising such number
of officers and staff as the Government may from time to time determine
(2) There shall be a separate
budget for the Finance Commission in the annual budget of the Punjab.
(3) The secretariat of the
Finance Commission shall be headed by the Secretary to the Government, Finance
Department who shall also be the Principal Accounting Officer of the Finance
Commission.
Chapter - XIX
Local Government Properties
93. Local government properties.– (1) Subject to any conditions imposed by the Government, all properties
whether movable or immovable specified hereunder, and all interests of
whatsoever nature or kind therein, shall vest in a local government:
(a) all lands, buildings or
other properties which were vested in any defunct local government of which the
local government is the successor under section 4 of this Act;
(b) all lands or other
properties transferred to the local government or acquired by gift, purchase or
otherwise for the purposes of this Act;
(c) all public and other buildings
of every description and all works, materials and things appertaining thereto
which are maintained by the local government in relation to its functions under
this Act;
(d) all lands, open spaces,
play grounds, gardens, parks and other places of public resort transferred to
the local government with the title, by gift, purchase or otherwise for the
purposes of this Act;
(e) all public streets,
roads, bridges and other means of public communication which are transferred to
the local government and the pavements, stone and other material thereof and
trees growing on, and erections, materials, implements and things provided with
them;
(f) all public sewers and
drains except those owned and maintained under the Canal and Drainage Act, 1873
(VIII of 1873) or any other law on the subject of the Act ibid, and all sewers, culverts and other channels for sullage in or
under any public street, or constructed by or for the local government in the
respective local area and all works, materials and things appertaining thereto;
(g) all works for the
disposal of refuse and night soil maintained by the local government;
(h) all public lamps, lamp
posts and other appliances for street lighting maintained by the local
government;
(i) all public streams,
springs and works for supply, storage and distribution of drinking water for
public purposes maintained by the local government and all buildings, machines,
materials and things or land, not being privately owned land, appertaining
thereto;
(j) all trees, plants and
flowers on roadsides and other places maintained by the local government; and
(k) any other property which
may vest in the local government under any law for the time being in force or
under an order of the Government.
(2) Every local government
shall maintain a register of all properties along with a map of all immovable
properties of which it is the proprietor or which vests in it or which it holds
in trust for the Government or any other authority or person.
Explanation: For the purpose of this
section, a building map shall include any location maps as well as a map
indicating the layout of the building.
(3) The Government shall not, except with
the prior consent of the local government concerned, reallocate or in any other
manner divest title of properties vested in that local government under this
Act.
94. Use and disposal of properties of local governments.– (1) The properties of local governments shall be used only for public
purposes.
(2) The immovable properties of local
governments shall not be sold or permanently alienated without prior approval
of the Government:
provided that in case
title of an immoveable property is transferred to a Government department,
authority, or agency, the price of property not less than the amount assessed
by District Price Assessment Committee shall be transferred to such local
government.
(3) The properties of the local government
may be given on lease through competitive bidding by public auction.
(4) The local government may
through a written agreement, lease a property to a Government
department, authority or agency, without public auction on a rent approved by
the Council.
(5) The local government may constitute a
Committee headed by the Head of the local government to identify encroached or
redundant properties that may be sold in the prescribed manner with the
approval of the Government, and the funds generated from the sale of such
properties shall be kept in a separate head of account and be used only for development
purposes.
(6) Where a lease of immoveable property of
a local government under a valid lease agreement has expired or is about to
expire and it does not contain any condition for extension of lease period, the
period of lease may be extended upto ten years after
fresh assessment by Rent Assessment Committee on a rate not below the rate
assessed by it with an annual increase of ten percent, consisting of following
members:
(a) Head of the local
government as convenor;
(b) Assistant Commissioner concerned
or his nominee;
(c) Chief Officer of the
local government;
(d) Incharge of Finance Wing
of the local government as Secretary of Committee;
(e) Incharge of Regulation
Wing of the local government; and
(f) District Excise and
Taxation Officer or his nominee not below the rank of BS-16.
(7) Where no written lease agreement is
available but the occupant of immoveable property has been paying rent to the
local government for at least last five years, the local government may enter
into written agreement with the occupant for a period of five years after fresh
assessment by Rent Assessment Committee on a rate not below the rate assessed
by it with an annual increase of ten percent.
(8) In case of failure to enter into written
agreement under subsection (6) or (7), the local government shall, within one
month, take over the possession of the immoveable property and shall proceed in
accordance with subsection (3).
(9) The movable property of a local
government including all articles declared unserviceable which are required to
be disposed of, shall be sold through competitive bidding by public auction.
(10) A local government shall inspect, manage,
maintain and whenever so required develop or improve any property which is
owned by or vested in it or which is otherwise placed under its charge.
95. Acquisition of immovable property.– Whenever any local government considers it necessary or expedient, it
may acquire or purchase any immovable property for public purposes, with the
prior permission of the Government:
provided that in case
of purchase of property, the agreement of purchase shall be in writing:
provided further that
the development authorities entrusted to local governments, may acquire land
for development purposes and may sell or dispose of thereafter in accordance
with the existing laws and the rules made thereunder.
96. Loss of property of local government.– In case of any loss of property of the local government, the
responsibility for such loss shall be fixed by the concerned local government
and the amount of the loss shall be recovered from the defaulting person and a
report to this effect shall forthwith be submitted to the concerned Council in
the meeting next following.
97. Annual stock of local government properties.– Every local government shall, in the prescribed manner, at least once
in every financial year, take the physical stock of movable and immovable
properties of the concerned local government, submit a report to the concerned
Council and shall publish the same.
98. Insurance of certain local government properties.– A local government may, subject to the rules and any other relevant l