7th NFC Award a 'blessing' for provinces, 'nuisance' for Centre
10 February, 2013
ISLAMABAD: The 7th National Finance Commission Award has come as a blessing for provinces with their savings running into billions of rupees, in contrast to the federal government that had to face a budget deficit of Rs 642 billion during the first half of the fiscal year 2012-13 alone. A comparison of the first half of the ongoing fiscal year with corresponding period in the last fiscal year prepared by the Ministry of Finance in its in fiscal operations report shows that the provinces managed to save a sum of Rs 142.288 billion after meeting their development and non-development expenditures. On the contrary, federal government had to face a budget deficit of Rs 624.655 billion in the same period. Federal transfers to provinces witnessed a 27% increase under the 7th National Finance Commission Award as the provinces received Rs 592.156 billion during first half of the ongoing fiscal year, against the federal transfers of Rs 466.010 billion in the same period last year, according to the report. The development spending by all four provinces projected a growth of 36% and total development expenditures by the provinces amounted to Rs 122.463 billion, as compared to Rs 89.444 billion in the same period last year. The provinces projected a growth of 89.7% in their tax revenues and their collective tax collection amounted to Rs 70.716 billion in the first half, against a collection of Rs 37.268 billion in the same period last year. Punjab: Punjab received a sum of Rs 278.595 billion in first half of the ongoing fiscal year under NFC Award, against the federal transfers of Rs 214.568 billion in the same period last year, indicating an increase of 29.2%. Provincial tax collection remained at Rs 36.043 billion, against Rs 17.152 billion last year, showing an increase of 136%. Non-tax revenues amounted to Rs16.779 billion as compared with Rs 17.152 billion last year, showing an increase of 21.9%%. The province spent Rs 56.344 billion on development projects as compared to Rs 49.094 billion spent last year, showing an increase of 12.7%. Sindh: Sindh received Rs 154.050 billion in the first half against federal transfers of Rs 124.195 billion in the same period last year, indicating an increase of 24%. Provincial tax collection remained at Rs 32.325 billion against Rs 18.062 billion collected last year, showing an increase of 79%. Non-tax revenues amounted to Rs 13.619 billion in the first half as compared to Rs 2.872 billion last year, showing an increase of 374%. Khyber Pakhtunkhwa: The province received Rs 96.360 billion in the first half against federal transfers of Rs 74.565 billion last year, indicating an increase of 29.2%. Provincial tax collection remained at Rs 1.865 billion against Rs 1.594 billion last year, showing an increase of 17%. Non-tax revenues amounted to Rs 2.204 billion as compared to Rs.6.679 billion in the same period last year, showing a decrease of 203%. The province spent Rs 25.117 billion on development projects as compared to Rs 21.458 billion last year, showing an increase of 17%. Balochistan: Balochistan received Rs 63.154 billion in first half of ongoing fiscal year against the federal transfers of Rs 52.682 billion in the same period last year, indicating an increase of 19.8%. Provincial tax collection remained at Rs 483 million against Rs 469 million last year, showing a negligible growth. Non-tax revenues amounted to Rs 1.883 billion as compared to Rs 559 million collection last year, showing an increase of 336%. The province spent Rs 12.748 billion on development projects as compared to spending of Rs 8.278 billion in same period last year, showing an increase of 48.3%. End.
|
