Government of the Punjab, Finance Department Lahore has issued the official Notification letter on 11th November, 2019 in connection with local government finance system under the Punjab local Government Act 2019, Operations of local fund & public account of defunct local Governments.
The Punjab Government has established succeeding local governments in Punjab in terms of Section 3 (2) road with Section 15 of the Punjab Local Government Act, 2019 vide Notifications issued by Local Government & Community Development, and published in the Punjab Gazette on 07-11-2019.
The local governments established under the PLGA-2013 i.e. the defunct local governments have, therefore, ceased to exist with effect from 07-11-2019.
In order to ensure continuity of public services being provided by the succeeding local governments, the Government has decided, that bank accounts of defunct local governments shall continue to remain operational till 05-01-2020, until that time the bank accounts of the succeeding local governments shall be established and shall be operated by the respective DDOs, as per instructions issued by the Finance Department under the PLGA-2109 and the applicable rules.
In terms of the provisions or sections 317 to 320 of the Act, ibid, the bank accounts of defunct local governments till 05-01-2020, will be operated by the DDOs of the defunct local governments and will continue to discharge validly accrued liabilities subject to no advance payment and fulfillment of all legal / codal formalities, from the cash balance / respective bank accounts of the Local Fund and Public Account of the defunct local governments, till January 05, 2020.
It may, however, be clarified that the payments/expenditure from the existing bank accounts of the defunct local governments, shall be adjustable from the cash balances eventually payable to the succeeding local governments, in accordance with Section 4 and other related provisions of the Act ibid.
The concerned DDOs of the defunct local governments shall maintain separate accounts of such payments as well as Tax Non-Tax / Public Account Receipts / PFC share, If any, for each of the succeeding local governments.
Tho cash balance, as available on the date of constitution of new Local governments in Punjab under the PLGA-2019 i.e. 07-11-2019,adjustment of payment made and income received during the interim period until 05-01-2020, shall be distributed among the succeeding local governments as prescribed in Sections 4 and other related provisions of the Act ibid.