Despite financial constraints, the Federal Government has released to the provinces their due share of Rs 178 billion from divisible poll during the first quarter of the current fiscal year, it was learnt.
Sources in the finance ministry told Business Recorder that total distribution of divisible pool taxes during the first quarter was Rs 328 billion, of which Rs 178 billion, 57 percent share was released to the provinces and remaining Rs 132 billion, 42.3 percent, was kept by the Federal Government. Punjab province received Rs 92.61 billion during the July-September 2011-12 followed by Sindh province Rs 43.94 billion, Khyber-Pakhtunkhwa Rs 29.31 billion and Balochistan Rs 23.25 billion.
The position of distribution of divisible poll taxes during the first quarter of fiscal year 2011-12 was Rs 328 billion and Rs 318 gross collection in divisible pool after Rs 9.74 billion less non-divisible pool, Rs 6.25 billion Worker Welfare Fund (WWF) tax and excise and export duty of Rs 0.99 billion and Rs 2.5 billion, respectively on natural gas. The net amount in the divisible pools was worked out Rs 314.42 billion after 1 percent collection charges by the Federal Government and Rs 1.03 billion as 1 percent income tax on account of tax paid out of federal consolidated.
Sources said that from net amount in divisible pool of Rs 314.42 billion for the first quarter of the current fiscal year, an amount of Rs 3.3 billion was set aside as 1 percent for the Khyber-Pakhtukhwa for War on Terror and remaining Rs 311 billion collection in the divisible pool was distributed among all the provinces and Federal Government as per agreed formula in the National Finance Commission (NFC) for distribution of resources from the divisible pool. As per agreed formula, Punjab gets 51.57 percent share from provincial share in the divisible pool, Sindh 24.55 percent, Khyber-Pakhtunkhwa 14.4 percent in addition to 1 percent War on Terror (WoT).