17 local govts take loans without federal approval or budget allocation
Summary
Seventeen local governments borrowed Rs 338.78 million from the Town Development Fund last fiscal year without federal approval, and seven of them also failed to include the loans in their annual budgets. The National Natural Resources and Fiscal Commission has urged stricter compliance with borrowing rules and better public debt management systems.
Key Points
- Seventeen local governments mobilized Rs 338.781543 million in internal loans from the Town Development Fund without federal government consent, according to the National Natural Resources and Fiscal Commission.
- Seven of the local governments did not include the loans in their annual budgets, and the Ministry of Finance had no record of approval requests.
- The commission said provincial and local governments must follow the Intergovernmental Fiscal Arrangement Act, 2017 before taking internal loans.
- It also recommended limits, project viability checks, and an integrated electronic system for tracking internal and public debt.