Provinces got Rs1121.2b from FBR’s divisible pool in 1st half of FY19
ISLAMABAD: The provincial governments received Rs 1121.207 billion from the Federal Board of Revenue’s (FBR) divisible pool collection out of Rs 1949.752 billion it collected during the first half fiscal year 2018-19.
According to the Bi-Annual Report of Period July- December (FY 2018-19) on the implementation of National Finance Commission (NFC) Award, which was presented in the NFC Monitoring Committee for approval, the Punjab province had Rs 580.061 billion share whereas Sindh got 275.232 billion, Khyber Pakhtunkhwa Rs163.906 billion and Balochistan got 101.909 billion.
In addition to these transfers, KP received one percent as war on terror fund of Rs 19.694 billion, Balochistan additionally Rs10.149 billion and Sindh OZT grant Rs7.399 billion. Straight transfers for the period were Rs 48.225 billion.
The NFC Monitoring Committee was held here under the chairmanship of Adviser to the Prime Minister on Finance and Revenue Dr.Abdul Hafeez Shaikh while Provincial Finance Ministers of Khyber Pakhtunkhwa and Balochistan were also present while Punjab and Sindh were represented by their Finance Secretaries.
The meeting was convened to seek approval of the bi-annual report on the implementation of the NFC Award for the periods of July–December 2018 and January–June 2019 and the establishment of the National Tax Council (NTC).
The reports which were approved by the NFC monitoring Committee would be presented in the National and Provincial Assemblies under the requirements of the Article 160 (3B) of the Constitution.
The bi-annual reports contain the information on Distribution of Revenues and Grants in Aid to the provinces under NFC Award announced in 2010 (7th NFC Award), according to press statement issued by the Finance Ministry.
The report also contained the inputs from the provinces, it said adding the reports were endorsed by the provinces.
In addition to the divisible pool funds, Rs 19.708 bn were given to KP for WoT, Balcohistan additionally received 10.079 billion and Sindh got OZT grant of 7.404 billion.
Straight transfers of Rs 46.826 billion were also made to the provinces during the period under four heads of royalty on crude oil, royalty on natural gas, gas development surcharge and excise duty on Natural Gas.
During the meeting, suggestions were also presented for sales tax harmonization in Pakistan. Pursuant to the decision of CCI dated 24th November 2017, the framing of ToRs of the Fiscal Coordination Committee (FCC) was assigned to the NFC Monitoring Committee.
The said ToRs were framed and approved in the meeting, stating that the FCC would review and discuss the fiscal policy issues of the federal and provincial governments and suggest solutions.
It will monitor current and development expenditures of the federal and provincial governments.
The discussion on issues related to FBR receipts would also fall under the ambit of this committee while the review of debt stock of the federal and provincial governments in the perspective of FRDL Act, discussion on the position of provinces’ own receipts and suggestion of measures for enhancement of provincial revenues and the review of cash balances of the federal and provincial governments were also assigned to the Committee. - APP