ISLAMABAD    -   The provinces would receive Rs5.276 trillion from the federal gov­ernment under the Na­tional Finance Commis­sion (NFC) Award in the next fiscal year after the tax collection tar­get of the Federal Board of Revenue (FBR) has been enhanced.

The four provinc­es would receive Rs5.276 trillion from the cen­tre under the NFC Award in next financial year as against the revised Rs4.129 trillion of the outgo­ing fiscal year, showing an increase of 27.8 per­cent. The share of provinces has been increased by Rs1147 billion due to the federal government’s decision to enhance the tax collection target for the FBR. The government has set a Rs9.2 trillion tax collection target the next financial year. 

The amount to be transferred to the provinces would depend on the FBR performance to achieve its collection target of Rs9.2 trillion in the fiscal year 2023-24. The government has enhanced the share of the provinces under NFC award, but it has also asked them to give a surplus budget of Rs650 billion. Under the 7th NFC Award, the Federal Di­visible Pool was distributed as 57.5 percent share for the provinces and the remaining for the Cen­tre. The provincial governments get shares from the federal government under the NFC Award as per the said formula. Punjab gets 51.74 percent, Sindh 24.55 percent, Khyber Pakhtunkhwa 14.62 percent and Balochistan 9.09 percent. According to the budget documents, the federal government would transfer Rs2.626 trillion to Punjab in the next fiscal year against the revised Rs2.042 trillion of the current fiscal year. Sindh will receive Rs1.304 trillion in the FY2023-24 as compared to revised Rs1.019 trillion of the outgoing year.