FY 2009: Centre releases Rs8b less than Sindh's share

KARACHI-The Sindh government has recorded over Rs8 billion shortfall in federal receipts as Federal Government released Rs80 billion against budgetary estimate of Rs88.9 billion of Sindh during six months of current financial year 2008-09, official sources told The Nation.
While announcing federal budget of FY08-09, the Islamabad had fixed Sindh’s share at Rs177.6 billion in terms of federal receipts, but the transfer of receipts were less than the prescribed share.
According to provincial finance department the federal receipts released by the centre were 16 per cent less than share of Sindh in current fiscal.
According to a senior official of Finance Department, out of Rs177.6 billion share allocated for Sindh in current fiscal, the province should have received Rs88.9 billion but, the actual amount received by the provincial government was Rs8 billion less than share in six month from July to December of FY09.
These federal receipts are consisted of various components such as Revenue Assignments-share in taxes Income tax, Sales tax, Central Excise Duty, Custom Duty, GST on Services. These taxes are part of NFC award while every province gets share on its population basis.
According to official sources, the province has recorded 16 per cent shortfall in federal transfers of Revenue Assignment as province received Rs42 billion against its share of Rs51 billion during six months.
According to breakup of Revenue Assignment, the Sindh received Rs17 billion in terms of Income tax, showing 23 per cent less than its budget estimated share of Rs23 billion in six months.
Similarly, Sindh also suffered shortfall of 6 per cent in Central Excise Duty as province got Rs4.7 billion against its estimated share of Rs5 billion during July-December of this fiscal. In Custom duty, against share of Rs8 billion of Sindh in six months, the federal government released merely Rs6.7 billion showing 16 per cent shortfall.
However, concerned officials of Finance Department pointed out that Sindh faced huge shortfall of 56 per cent in terms of General Sales Tax on Services as province received one billion rupees against six months share of Rs2.5 billion.