Punjab Finance Minister Tanvir Ashraf Kaira has said that the signing of 7th NFC Award ceremony is a landmark in the political history of Pakistan and it's a great achievement towards national harmony and solidarity with regard to financial reconciliation between provinces and federation.
He further said that the present NFC award would provide basis for the future awards. While talking to media here on Wednesday, he said the Award is the gift of democracy and has paved the way to give financial autonomy to provinces and the grievance of the Balochistan has been re-addressed in this historic award.
"The Federation showed remarkable flexibility to provide additional resources to the provinces and now the share of provinces would be increased from 47.5 percent to 56 percent in Federal Divisible Pool during next fiscal year. The share of provinces in FDP would be increased up to 57.5 percent in next four years, which is major shift in vertical revenue sharing and long standing demand of the provinces has been met amicably," he added.
According to him, Punjab played historic role to accommodate other provinces, especially Balochistan. It has sacrificed its 1.1 percent its share for Balochistan and according to new NFC formula Balochistan would get 9.1 percent from horizontal distribution and its shares would be enhanced up to Rs 83 billion whereas it is expected that share of Punjab would be Rs 464 billion in next fiscal year in FDP.
He said according to the new formula of NFC the Punjab may get more than Rs 60 billion more resources from the Federation during the next fiscal year (2010-11) and the Punjab government would utilise these resources for the welfare of people.
"GST on services now has become provincial subject and the Federation would get only 1 percent collection charges. The reduction of collection charges from 5 percent to 1 percent on GST on services would also help the provinces to get 4 percent additional resources.
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