28.
29.
Agricultural policy.
Any matter incidental to or connected with the functions and services
mentioned in this Schedule.
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Seventh Schedule.
article 193.
Unconditional grant to local governments.
Unconditional grant is the minimum amount to be paid to the local
governments to run the decentralised services. For a given fiscal year, this
amount is equal to the amount paid to local governments in the preceding
fiscal year for the same items adjusted1 for general price changes plus or
minus the budgeted cost of running added or subtracted services; calculated
in accordance with the following formula—
Y1
Where—
Y1
Yo
b
X1
=
=
Yo + b Yo + X1
(1+b)Yo + X1
is the minimum unconditional grant for the current fiscal
year;
is the minimum unconditional grant in the preceding fiscal
year;
is the percentage change, if any, in the general price levels
in the preceding fiscal year; and
is the net change in the budgeted cost of running added and
subtracted services in the current year.
For the purposes of this formula the current fiscal year shall be taken to
commence with fiscal year 1995/96.
1
Note that the unconditional grant is equal to the sum of wage and nonwage
components. Therefore, the wage components should be adjusted for the
wage increase, if any, while the nonwage component is adjusted for the
changes in the general price levels.
_____
History: Constitution of 1995; S.I. 354/1995; Act 13/2000.