ISLAMABAD - The provinces’ share from the National Finance Commission (NFC) Award has been revised upwards after the tax collection target of the Federal Board of Revenue (FBR) has increased for the current fiscal year (FY22).
The FBR’s initially tax collection target for the current fiscal year was Rs5.83 trillion, which was later increased to Rs6.1 trillion on the directions of the International Monetary Fund (IMF). Following the revision in tax collection target, the provinces share from the NFC award has also been revised for the ongoing financial year. The provinces would receive around Rs3.6 trillion from the federal government under the NFC award as compared to initial estimates of Rs3.4 trillion. The provincial share from NFC Award always depends on the tax collection of the FBR. The FBR’s tax collection in first nine months (July to March) of ongoing financial year is on track. The FBR has collected net revenue of Rs 4,382 billion during July, 2021 to March, 2022 of current financial year 2021-22, which has exceeded the target of Rs247 billion. This represents a growth of about 29.1% over the collection of Rs. 3,394 billion during the same period, last year.
Under the 7th NFC Award, the federal govt is bound to transfer 57.5 percent of the resources to the four provinces. The provincial governments get shares from the federal government under NFC Award as per the said formula. Punjab gets 51.74 percent, Sindh 24.55 percent, Khyber Pakhtunkhwa 14.62pc and Balochistan 9.09 percent.
As per NFC formula, the provincial governments had already received Rs1.694 trillion from the federal government under the NFC in first half (July-December) of the year 2021-22. Meanwhile, four provinces had collected taxes of only Rs271.2 billion. The provinces largely depend on the share from the federal government under NFC to meet their expenditures.
Punjab province had received Rs836.5 billion from the federal government during first half of the current fiscal year. Meanwhile, the province had generated only Rs123.5 billion from its own sources. Sindh government has received Rs425.11 billion from the federal government during July to December period of the year 2021-22. The Sindh government collected Rs124 billion from its own sources.
Khyber Pakhtunkhwa’s tax collection was recorded at Rs15.8 billion in first half of the last year. The province has received Rs277.2 billion from the federal government under NFC during first six months of the current fiscal year. Balochistan’s overall revenues stood at Rs180.344 billion. Balochistan’s tax collection was recorded at Rs7.725 billion and remaining are received from the federal government under NFC Award.
The FBR’s initially tax collection target for the current fiscal year was Rs5.83 trillion, which was later increased to Rs6.1 trillion on the directions of the International Monetary Fund (IMF). Following the revision in tax collection target, the provinces share from the NFC award has also been revised for the ongoing financial year. The provinces would receive around Rs3.6 trillion from the federal government under the NFC award as compared to initial estimates of Rs3.4 trillion. The provincial share from NFC Award always depends on the tax collection of the FBR. The FBR’s tax collection in first nine months (July to March) of ongoing financial year is on track. The FBR has collected net revenue of Rs 4,382 billion during July, 2021 to March, 2022 of current financial year 2021-22, which has exceeded the target of Rs247 billion. This represents a growth of about 29.1% over the collection of Rs. 3,394 billion during the same period, last year.
Under the 7th NFC Award, the federal govt is bound to transfer 57.5 percent of the resources to the four provinces. The provincial governments get shares from the federal government under NFC Award as per the said formula. Punjab gets 51.74 percent, Sindh 24.55 percent, Khyber Pakhtunkhwa 14.62pc and Balochistan 9.09 percent.
As per NFC formula, the provincial governments had already received Rs1.694 trillion from the federal government under the NFC in first half (July-December) of the year 2021-22. Meanwhile, four provinces had collected taxes of only Rs271.2 billion. The provinces largely depend on the share from the federal government under NFC to meet their expenditures.
Punjab province had received Rs836.5 billion from the federal government during first half of the current fiscal year. Meanwhile, the province had generated only Rs123.5 billion from its own sources. Sindh government has received Rs425.11 billion from the federal government during July to December period of the year 2021-22. The Sindh government collected Rs124 billion from its own sources.
Khyber Pakhtunkhwa’s tax collection was recorded at Rs15.8 billion in first half of the last year. The province has received Rs277.2 billion from the federal government under NFC during first six months of the current fiscal year. Balochistan’s overall revenues stood at Rs180.344 billion. Balochistan’s tax collection was recorded at Rs7.725 billion and remaining are received from the federal government under NFC Award.