LAHORE - The City District Government Lahore is facing serious financial constraints in the beginning of fiscal year 2010-11 as the Punjab Government deducted Rs 66.313 million from first installment made under the Provincial Finance Commission Award 2010, sources informed The Nation on Friday. The Punjab Finance Department has released Rs 762.418 million to the CDGL instead of making already decided monthly transfer of Rs 818.731 million for July 2010-11, thus enhancing the miseries of already money-strapped district by deducting Rs 66.313 million from its monthly share in the provincial resources. Under the PFC Award 2010, CDGL was to get Rs 9824.789 million from provincial resources to meet its expenditures in the fiscal year 2010. Though the share of the CDGL was increased by 20.12 per cent to enable it to adjust the recent increase in salaries, medical allowance and pension of retired employees, cut in the share for July 2010 has made it difficult for the district to make both ends meet. According to the officials, the CDGL has already cut development projects to meet the growing expenditures in the wake of recent increase in salaries of employees. They say that Rs 3,128.35 million will be utilised to adjust 50 percent increase in salaries, raise in medical allowance and 15 percent to 20 percent increase in pension of retired employees. The CDGL did not introduce even a single new scheme and allocated Rs 4,547.921 million for carrying out ongoing development projects under Annual Development Programme for 2010-11. The officials say that lack of resources will cause further cut on the development schemes. As such a number of ongoing projects would be stopped due to lack of funds. Like other local governments in the province, CDGL heavily rely on fund transfers under PFC Award as own resources are not enough to fulfill even half of the budget requirements.