The Punjab Local Government and Community Development department has allowed the local governments to begin using funds deposited with the newly opened bank accounts for the payment of salaries, utilities bills, stationery and petrol.
The Local Government Department has formally allowed the chief officers to operate their accounts and ensure that there should be no financial constraints in the working of the newly-established local governments.
The finance department will transfer Rs2.5 billion to the local government accounts across the province for the payment of salaries for the current month.
While, the Provincial Finance Commission share has already been announced, the local governments have currently been provided 50pc funds in advance so that they could start functioning without facing financial constraints.
It is learnt that the finance department will disburse the PFC share after scrutinising the total budget released for the ongoing schemes as well as the volume of utilised and unutilised budget.
Reporter. Local govts allowed to use accounts. Dawn, January 15, 2017.