The Arunachal Pradesh Gazette EXTRAORDINARY PUBLISHED BY AUTHORITY No. 72, Vol. XVIII, Naharlagun, Wednesday, April 20, 2011 Chaitra 30, 1933 (Saka) GOVERNMENT OF ARUNACHAL PRADESH DEPARTMENT OF URBAN DEVELOPMENT ARUNACHAL PRADESH CIVIL SECRETARIAT ITANAGAR NOTIFICATION The 14th April, 2011 No. DTP/MUN-26/2009-1 O:-In exercise of the powers conferred by section 446 of the Arunachal Pradesh MunicipalAct, 2007(Act No.4 of 2008) the Governor of Arunachal Pradesh do hereby makes the following rules for internal earmarking of bugets for providing basic services to the urban poor namely:
1. (1) These Rules may be called the Arunachal Pradesh Internal Earmarking of Budgets Short title for Urban Poor Rules of 2011. Extent.
(2) They shall come into force all over the State of Arunachal Pradesh on the date the State Government by notification in the official Gazette appoint and shall super sede anything to the contrary contained in any municipal rules notified by the State Government under the Arunachal Pradesh Municipal Act, 2007 in so far as they pertains to earmarking of budgets for providing basic services to the urban poor.
2. Uninhabited Areas which are being developed under a master plan/development plan shall Exemptions be governed under a different set of rules including change management of population Definitions.
living i~ the vicinity of such areas.
3. For the purposes of these rules:
(a) 'Budget' means Municipal Budget prepared by the urban local bodies under the Arunachal Pradesh Municipal Act, 2007 in accordance with the codes prescribed for basic services for urban poor in the National Municipal Accounting Manual.
(b) 'Act' means the Arunachal Pradesh Municipal Act, 2007.
(c) 'Rules' means the Arunachal Pradesh Internal Earmarking of Budgets for Urban Poor Rules of 2011.
(d) 'Committee' means the subject committee on internal earmarking of budgets for urban poor appointed under the Arunachal Pradesh MunicipalAct, 2007, and whose decisions shall be ratified by the Empowered Committee as per section 21 of the Arunachal Pradesh Municipal Act, 2007.
(e) 'Internal Earmarking of Budget for Urban Poor' means earmarking of specific amount of budgetary allocation for urban poor estimated through a document produced by the municipal council every one to two years (depending on as and how the Council passes a resolution on the same, also based on the incidence and alleviation of poverty, and which shall serve as the official statement of facts on poverty for the year/ years, and on whose basis any budgets would be earmarked.
(f) 'Municipal Action Plan for Poverty Reduction' shall mean an action plan which shall be drawn up for a fixed perspective period, which may be a maximum of five years, and a minimum of two years. This plan would be developed by the municipal council under the aegis of the Committee, and would be endorsed by the Council through a resolution ..
4.
(g) 'Project pipeline' shall mean a list of projects proposed to be taken up pursuant to their being included in the Municipal Action Plan for Poverty Reduction.
Notwithstanding anything contained in the Arunachal Pradesh Municipalities Act, 2007, or any rules made thereunder:-
(a) The Subject Committee shall in every year as specified by the Council through its resolution, earmark budgetary allocation for urban poor in the cities/ towns of the state.
Functions of the subject committee.
2 The Arunachal Pradesh Extraordinary Gazette, April 20,2011
(b) The Committee shall commission, at a regular interval as specified by the council through its resolution, the preparation of a municipal poverty profile for the cities!
towns.
(c) The Empowered Committee, on the basis of the Subject Committee, may appoint officialAccounts Officer to ensure and oversee the earmarking of the internal earmarking of budgets for urban poor on behalf of the municipality.
(d) The Empowered Committee, on the basis of the Subject Committee, may appoint any agency or individuals for the preparation of the municipal poverty profile, as a service.
Earmarking of 5. Commissioning the Internal Earmarking budget.
(a) Preparation of a roadmap for separate budgetary head for urban poor welfare and detailed budget items under their respective separate budgetary head or separate budget for urban poor and adopt an appropriate Government policy.
(b) The Municipal budget would make a discrete entry under the budgetary head pertaining 'internal earmarking of urban poor' the proportion of which will be determined through studies and research for the preparation of the urban poverty profile. This head would remain non-Iapsable for a period of two years, and re-appropriations can be made from any surpluses under any head at the discretion and approval of the Municipal Commissioner.
(c) The Empowered Committee may award, either by bid, or by nomination (in case a suitable bidder is not found), the task of preparing the municipal poverty profile to any party that matches the qualifications listed in 'Arunachal Pradesh Urban Poverty Profiling and Strategic Plan Rules of 2011'.
(d) The Committee WOUld, through the official as appointed in line with Rule 4(c) as above, regularly monitor the 'internal earmarking of budgets for urban poor.
(e) In the context of urban poverty study, the Committee has the right to terminate the assignment in case the agency is not performing satisfactorily. In such event, the Committee, would make a recommendation to the Empowered Committee to cancel the engagement and take fresh steps to assign a new agency.
Consultation. 6. Consultations during the preparation of municipal poverty profile followed by 'Internal Earmarking Budgets for Urban Poor' shall be as under:-
(a) During the preparation of the municipal poverty profile, the agency appointed would require holding extensive consultations with the underserved segments of the city's populace. In order to facilitate this, the Committee, would direct the concerned ward committee to organize a public meeting in line with the rules on participation of elected representatives in city planning function. Such a consultation would be funded out of municipal expenses, and would cover, at least:
(i) Statement concerning the findings on the seven point charter and other related parameters,
(ii) Emergent issues at hand,
(iii) Technical and regulatory framework, including legislative limits,
(iv) Prioritization of issues;
(b) A report of the Consultation would be prepared by the Agency commissioned to create the municipal poverty profile, which would be signed by the Councilor and Chairperson of the Ward Committee and be freely available to the public at large.
(c) During preparation of 'Budget for Urban Poor' it will be necessary to examine all the budgetary processes - identification and selection of development works for urban poor, processes and implementation of works i.e. business process re-engineering.
(d) It would be essential to develop tools for additional transformations, as mere earmarking of funds or adoption of a separate budget head or separate budget structure for the urban poor welfare with detailed budget items under this separate head will not yield the desired result unless it is accompanied by a program of change management in the organization. Opinion building and attitudinal transformation exercise would need to be undertaken.
7. The Committee would review the results and inferences drawn from the data gathered by the Agency commissioned to prepare the municipal poverty profile, and may appoint specialist consultant to vet the findings.
Review of the Municipal poverty profile report.
P roced u re of 8. Procedure of acceptance of the municipal poverty profile.
acceptance of the municipal poverty profile.
(a) The Committee may deliberate internally, and based on the inputs of any external!
interim specialist (as regards the robustness and integrity of the data and analysis made and budgetary allocation decided), would place the draft budget before the Municipal Council for acceptance! modification!rejection, if any (through resolution).
The Arunachal Pradesh Extraordinary Gazette, April 20, 2011 3
(b) The Council may endorse the same after necessary debate, may by passing a resolution modify/reject or accept the 'budget for urban poor'.
9. Once the municipal poverty profilel budget for urban poor is accepted, the Committee Acceptance of would forward the matter to the Empowered Committee, who may take up the preparation Municipal of a municipal action plan for poverty reduction, either through the same agency which poverty profile prepared the municipal poverty profile or specialist consultant who had vetted the profile. and reccomendation.
10. The 'Municipal Action Plan for Poverty Reduction' would essentially be expected to cover Aspects to be the following: covered under municipal Action Plan for Poverty Reduction.
Area under review Output Baseline incidence rate of urban Review of Indicators for poverty as used in municipal poverty profile poverty, to target rate of incidence and any new indictors that may be deemed necessary of poverty Regulatory framework Review of all statutory plans and policies and recommendations to change the same Fiscal framework Review of all budgetary sources available, and re-working of the same including possible sources for funding. The agency may also assist the urban local body for making cases for enhanced grants Technical framework Review of infrastructure and development of project pipeline Institutional framework Organisational review of community based! area based structures, identifying shortfalls and suggesting means to improve the same
11. 'Internal Earmarking of Budgets for Urban Poor' would essentially be expected to cover the following:- Processes Responsibility(s) Role(s) Pre-Implementation Phase Identify the NodalAgency for Department of Local Responsibility for managing the implementation, deal- Implementing National Mu- Bodies ing with technology, process and change managenicipalAccounting Mannual ment related issues intemally, quality assurance etc.:
in the State Selection of budgetary reform expert (or consultant) Finalizing the road map Finalize the institutional framework Monitor budgetary reforms at Urban Local Bodies level Finalize the capacity building and change management plan for the State Selection of Budgetary Re- Department of Local Prepare separate budget head or budget strucfomns Consultant Bodies ture for urban poor welfare with detailed budget items for urban poor refonms roadmap Analysis of existing budgetary system Preparation of budgetary refonms operational manual for Urban Local Bodies Monitor budgetary reforms implementation of Urban Local Bodies Develop strategies for rolling out budgetary reforms across states/Urban Local Bodies Design change management programme at the Urban Local Body level Identify the milestonel indicator for monitoring success Preparation of Budgetary Department of Local Describe changes to be carried out by budget Refomns Roadmap Bodies structure, system and processes (from Department of Urban Local Bodies to Urban Local Bodies) Cr~eria and modules for allocation of resources for urban poor Modalities for instMonal framework! organizational restructuring for operationalizing separate budgets for the urban poor at the Urban Local Bodies level Roadmap for implementing perfonmance Restructuring of Urban Development Department and aspects to be covered while Internal eamnarking for urban poor.
4 The Arunachal Pradesh Extraordinary Gazette, April 20, 2011 Processes Responsibility(s) Pre-Implementation Phase Role(s) Acceptance of 12.
draft earmarking of municipal budgets.
Compiling and consolidation of Municipal Bud get.
Timeframe for budget pre sentation in the council meeting.
budgeting and outcome budgets along with separate budget and budget structure forthe urban poor welfare and detailed budget item for the urban poor Capacity building requirements Opinion building and attitudinal transformation strategies Broad cost estimates Implementation Phase Identify ULB Level Project Ita nagar, MC Preparation of budgetary reforms action ManagementUnit plan Monnor the budget reforms activities Monitor the segregation of budget items, resources and preparation of new budget activity Support deployment of the application Design training strategy for the State Implementation team Manage change at the Urban Local Body Preparation of Budgetary ltanagar, MC Prepare reform description including ReformsAction Plan objectives, service levels and outcomes Reform implementation approach and component detailing Reform costing Implementation timelines Develop evaluation and monitorinq system Pilot and Scale-up ltanagar, MC Pilot in one or two Zones! Select Ward Scale-up Change Management Department of Local Training end-users at state and Urban Local Bodies Body level Documentation Department of Local Preparation of documents such as:
Bodies Functional requirement document System design document User manuals Operational manual Maintenance manuals Otherdocumentation Internal acceptance of the draft municipal of earmarking budgets for urban poor
(a) The draft action plan for poverty reduction would be circulated to all Ward Committees, Subject Committee soliciting their comments, objections and suggestions, based on which allocation of budget will be done.
Note :- [This would require being done in a time bound manner, around 15 - 30 days. In case any Committee or individual fails to respond during the stipulated time frame, it will be understood that such Committee/ individuals accepts the draft plan in its present shape and form.]
(b) The Empowered Committee, based on the feedback received on the internal earmarking, would nominate the heads of the technical sections! their subordinates to identify conflicting suggestions, and take a view on which of the conflicting to adopt. Once this exercise has been done, the consolidated list of comments, objections and suggestions would be sent back to the Agency for incorporation into the municipal action plan for poverty reduction and subsequently to budget for urban poor.
13. The Empowered Committee may, after compiling all comments, objections and suggestions, consolidated budget for incorporation in the main municipal budget (to be finally moderated by the budget and finance committee of the council).
14. The Committee would submit, in a timeframe of two weeks, the finalized budgets for urban poor for presentation in the council meeting.
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15. The final budget would at last be tabled before the Council, along with an Executive Approval of the Council and a list of projects to be taken up during the perspective period. The Council budget.
may pass the same through a resolution of approval. Following the same, there would be the following three line of approach:
a. Implementation of municipal poverty reduction strategy plan.
b. Revision of budgets for re-sequencing of projects (temporally).
c. Revision of ward level plans for execution of works.
Secretary, Department of Urban Development & Town Planning, Government of Arunachal Pradesh, Itanagar.
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