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Provinces get Rs750bn from NFC pool

Provinces get Rs750bn from NFC pool

ISLAMABAD: The government transferred Rs749.59 billion of the federal revenue to provinces during the second half (Jan-June) of the previous fiscal year under the implementation of the 7th National Finance Commission (NFC) award.

The transferred amount constitutes 55pc of the total revenue (Rs1.356 trillion) collected during the six-month period. The remaining amount of Rs554.05bn was left with the federal government for running its expenditure.

The transfers to the provinces were reviewed in the second bi-annual monitoring report on the implementation of the 7th NFC award for January-June 2015.

During a meeting, chaired by Finance Minister Ishaq Dar, on Thursday of provincial finance ministers to discuss NFC award, Secretary Finance Dr Waqar Massod said the total tax collection, as reported by the FBR, remained Rs2.523tr during the financial year 2014-15, of which Rs1.356tr was collected in the second half.

The meeting was not attended by finance ministers from Khyber Pakhtunkhwa and Balochistan.

After subtracting non-divisible pool components and 1pc each as collection charges and an additional payment to the KP government on account of war on terror, the net divisible pool comes to Rs1.304tr.

As a result, the finance secretary said the share of the provincial governments was Rs749.59bn and the federal government was left with Rs554.05bn to look after its expenditure.

The secretary said Punjab received Rs387.84bn (or 51.8pc of the total provincial share), Sindh Rs184.03bn (24.55pc), KP Rs109.59bn (14.62pc) and Balochistan Rs68.14bn (9.01pc).

KP and Balochistan also received Rs13.15bn and Rs2.46bn additionally.

On the occasion, Mr Dar said that as per the requirements of the Article 160 (3b) of the Constitution, the report would be laid in both houses of parliament and provincial assemblies.

The 7th NFC award guarantees provinces’ share at 57.5pc of net federal tax receipts. But Balochistan’s annual share has been guaranteed irrespective of tax collection by the Federal Board of Revenue (FBR).

Courtesy : DawnNews



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