Rs 326 billion released to provinces during first half

Federal government has released Rs.326 billion to the provinces during the first half of the current fiscal year from Rs588 billion net divisible pool tax. This was informed to the provincial finance secretaries here on Monday at a meeting presided over by Finance Minister Dr Abdul Hafeez Sheikh on monitoring the implementation of 7th National Finance Commission Award (NFC).
Sources said that in a detailed presentation to the provincial finance secretaries, the Ministry of Finance informed them that net divisible pool for July-December 2010-11 stood at Rs.588.7 billion. Out of the total share, provincial share of 56% was worked out at Rs.326 billion and federation 44% share was Rs.256.44 billion. Khyber Pakhtunkhwa province was given Rs.5.89 billion on account of 1% for war on terror.
Punjab received Rs.168.87 billion in the first six months of the current fiscal year under the new NFC award from divisible pool followed by Sindh Rs.80.13 billion, KPK Rs.53.6 billion and Balochistan Rs.41 billion. Federal government also provided Rs.11.83 billion additional amount to Balochistan to match the guaranteed figure of Rs.83 billion per annum which reduced the federal government share in the divisible pool from Rs.256.44 billion to Rs.244.61 billion.
On account of crude oil royalty under 7th NFC Award from total Rs.8.172 billion collection, Punjab received Rs.2.187 billion, Sindh Rs.2.915 billion, KPK Rs.3.068 billion and Balochistan Rs.0.002 billion. On account of gas development surcharge, Punjab received Rs.1.852 billion including Rs.0.793 billion as royalty and Rs.1.059 billion as GDS, Sindh Rs.26.277 billion including Rs.11.962 billion royalty on natural gas and Rs.14.315 billion as GDS, KPK Rs.1.805 billion as royalty on natural gas and Rs.1.843 billion as GDS, Balochistan received Rs.3.331 billion as royalty and Rs.3.278 billion as GDS.
Federal government also allocated Rs.2 billion as arrears of GDS for Balochistan and during first half Rs.1 billion have been paid. In addition to this, Rs.10 billion has been allocated as arrears prior to 1991 under Aghaz-e-Haqooq Package out of which Rs.5 billion have been paid to Balochistan during the first six month of the current fiscal year. This was also decided to hold NFC meeting on quarterly basis to monitor implementation of the award in letter and spirit.