ISLAMABAD-The federal government has transferred Rs1.088 trillion to the provinces under National Finance Commission (NFC) award during the first quarter (July to September) of the current fiscal year.
The provinces would receive Rs5.276 trillion from the federal government under the NFC Award in the current fiscal year. The federal government has transferred 20 percent of the annual projected amount in the first quarter. According to data from the ministry of finance, provincial governments had received Rs1.088 trillion from the federal government under the NFC in the first quarter of the year 2023-24. Meanwhile, four provinces had collected taxes of only Rs461.88 billion; provincial non-tax collection was recorded at Rs281.8 billion. On the other hand, provinces had spent Rs1.318 trillion and had returned Rs51.4 billion to the federal government to restrict its budget deficit. Pakistan’s budget deficit was recorded at Rs962.8 billion (0.9 percent of the GDP) during the first quarter (July to September) of the current fiscal year. The country’s expenditures were recorded at Rs3.6 trillion as compared to the revenues of Rs2.7 trillion, making a deficit of Rs962.8 billion or 0.9 percent of the gross domestic product (GDP) during the previous financial year. Primary balance, which is the difference between government’s revenue and its non-interest expenditure, recorded a surplus of Rs416.8 billion or 0.4 percent of the GDP during the period under review.
Under the 7th NFC award, the federal government 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.
PUNJAB
Punjab province had recorded a budget deficit of Rs28.55 billion during the first quarter of the current fiscal year. The expenditures were registered at Rs650.7 billion as compared to the revenues of Rs622.1 billion. The major chunk of the revenues came from the federal government under a divisible pool. The Punjab government had received Rs525.88 trillion from the federal government during the first quarter of the current fiscal year. Meanwhile, the province had generated only Rs78.11 billion from its own sources and non-tax collection recorded at Rs20.7 billion.
SINDH
The province had shown a budget surplus of Rs19.099 billion, as its expenditures were recorded at Rs374.8 billion compared to the revenues of Rs393.9 billion. The Sindh government has received Rs261.5 billion from the federal government during the period under review. The Sindh government collected Rs80.4 billion as tax, Rs3.8 billion as non-tax collection and federal loans and grants stood at Rs48.2 billion.
KHYBER PAKHTUNKHWA
The KP’s budget was in deficit of Rs10.31 billion. Expenditures of this province were registered at Rs227.6 billion as compared to the revenues of Rs217.2 billion. The KP’s tax collection was recorded at Rs10.6 billion in the last year and non-tax collection remained at Rs6 billion. The province has received Rs177.1 billion from the federal government under NFC during the current fiscal year.
BALOCHISTAN
This province had also recorded a surplus budget of Rs71.2 billion. Balochistan expenditures had remained at Rs65.6 billion as compared to the revenues of Rs136.7 billion. Balochistan’s tax collection was recorded at Rs6.3 billion, non tax collection at Rs3.5 billion and federal loans and grants stood at Rs3.2 billion. The province has received Rs123.7 billion from the federal government under NFC.