The federal government has proposed to the provinces to allocate 3 per cent of the gross divisible pool for National Security Fund and 4% for the development of Special Areas (FATA, Azad Jammu & Kashmir and Gilgit-Baltistan) in the 9th National Finance Commission Award.
Talking to media, after chairing a meeting on the NFC, here on Monday, Dar said that the discussion on proposals for allocation of 3% and 4% of the gross divisible pool for National Security Fund (NSC) and Special Areas, respectively, took place with open hearts. He said that these proposals would be taken by the members of the finance commission to their respective provinces.
Secretary Finance, Dr Waqar Masood, made presentation on NSF and Special Areas where he recommended to the NFC to consider allocation said funds. The provincial representatives sought time for deliberations and consultations before making any decision on these proposals. The provinces also sought a complete set of proposals including details and modalities for use of fund/allocation, particularly related to the Special Areas.
Dar said that NSF was an extraordinary requirement and this would continue in future also because of the requirements of national security units. "We have raised 57 civil armed forces units and another 44 units will be required in the next two years," he said, adding that the proposal to allocate 7% from divisible pool and horizontal and vertical distribution in the next NFC Award would now be discussed in the next meeting to be held in January 2017.
Ishaq Dar's claim that there would be no impact on 57.5% of the provinces' share in the divisible pool was contested by member NFC from Balochistan. Kaiser Bengali said "Whatever percentage fixed for security fund and development of FATA, GB and AJK, the provinces will get lesser amount." The finance minister said provinces were working as per their capacity on security measures and the federal government disbursed Rs 300 billion for various measures to boost the internal security and on displacement, relocation of people from tribal areas and on operation Zarb-e-Azb against terrorists. "We have raised Northern Security and 28 wings of civil armed forces. The last meeting on National Security has decided to raise 29 more security units," he said.
Replying to a question, the finance minister stated, "We want distribution of resources from July 1, 2017 under the new NFC Award." Finance Minister Punjab Aysha Ghous Pasha said the impression that provinces were not making efforts to increase tax collection was untrue. She said that there was 45% growth in the provincial tax collection during the last two years and the first three months of the current fiscal year witnessed a growth of 33%. "Now provinces' tax collection is improving," she said. The finance minister KP said that he also presented the case of his province in the meeting and explained how badly the province was affected by the war against terror. He expressed hope that next NFC would be implemented in its true spirit.
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