Mansoor Bakhtiar
The financial crisis gripping two-thirds of Khyber Pakhtunkhwa’s municipal administrations is a wake-up call that cannot be ignored. It’s a pressing issue that demands immediate solutions to safeguard essential public services and infrastructure at the grassroots level.
Ninety-two tehsil municipal administrations, responsible for employing a staggering 343,000 individuals and ensuring the disbursement of pensions, are on the brink of collapse. These local bodies, crucial for maintaining public services and infrastructure at the grassroots level, are struggling to meet their financial obligations. The reasons behind this crisis are multifaceted, but they boil down to a lack of resources, an unsustainable fiscal burden, and a system that is in urgent need of reform.
The gravity of the situation is reflected in the extraordinary grant request submitted by the Municipal Department to the provincial government – a staggering Rs. 3.43 billion. These funds are desperately needed to rescue the sinking ship of 67 tehsil municipal administrations in settled areas and an additional 25 tehsil municipal administrations in tribal areas. These sums vary in size, but they all underscore a common plea for help. To address this crisis effectively, a multifaceted approach is required.
Fair Allocation of Resources
A primary step is to ensure that Khyber Pakhtunkhwa receives its fair share in federal transfers, including the National Finance Commission (NFC) award, net hydel profit, and oil & gas royalties. This would help alleviate the financial burden on the provincial government and municipal administrations.
Financial Reforms
Reform is necessary at the municipal level to improve financial management. Municipal administrations should be encouraged to adopt more transparent, efficient, and accountable financial practices. This could involve implementing advanced financial software and training staff in financial management.
Streamline Expenditure
Efforts should be made to streamline expenditures at both the provincial and municipal levels. This includes a careful review of salaries and pensions and exploring ways to reduce unnecessary costs without compromising essential services.
Enhanced Monitoring and Oversight
A robust oversight mechanism should be established to ensure that allocated funds are utilized for their intended purposes. This would help prevent mismanagement and financial irregularities.
Collaborative Approach
The provincial and federal governments need to work together to address the financial crisis. A collaborative approach that involves open dialogue, sharing of financial data, and agreement on resource allocation is crucial.
Local Revenue Generation
Municipal administrations should also explore opportunities for local revenue generation. This could include property taxes, user fees, and other sources of income to reduce their dependence on external funding.
Prioritization of Development Projects
Municipal administrations should prioritize development projects that have the potential to improve local economies and create sustainable revenue streams.
Empower Local Government
Empowering local government bodies is essential. Decentralization can lead to more efficient resource management and better responsiveness to local needs. This may require legislative changes and an overhaul of local governance structures.
Public Awareness
It’s important to educate the public about the financial challenges faced by municipal administrations and the need for community support. Transparency and public involvement can lead to a greater understanding of the issues and promote accountability.
Special Attention to Tribal Districts
The newly merged tribal districts require special attention and targeted development efforts to alleviate the historical deprivations they have endured. These efforts can help boost the local economy and reduce the fiscal burden on municipal administrations.
In conclusion, Khyber Pakhtunkhwa’s municipal financial crisis is a complex issue that requires a comprehensive and coordinated response. It’s not only about allocating funds but also about improving financial management, accountability, and local revenue generation. The provincial and federal governments, together with the local communities, must work collectively to overcome this challenge and ensure that municipal administrations can continue to provide vital services to the people of Khyber Pakhtunkhwa.
