PESHAWAR: The KP government will receive an estimated amount of Rs 1212 billion in head of federal transfers from the federal government in the next financial year 2024-25, said a white paper on the budget of the province.

Federal transfers from the federal government consist of its share of the National Finance Commission (NFC) Award and profits from hydroelectricity, more commonly known as Net Hydel Profit (NHP) and revenue from oil and gas. All these federal transfers constitute 69% of the total revenue receipts of the Khyber Pakhtunkhwa.

These federal transfers also included receipts in federal tax assignment i.e. taxes on income, Customs duties, sales tax, capital value tax (CVT) and Federal Excise and the provincial government will receive an estimated amount of Rs 903 billion in the head as compared to Rs 713 billion in the same head during the last financial year 2023-24.

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The big share in these heads is estimated in head of taxes on income which is amounting to Rs 405 billion as compared to Rs 338 billion during the outgoing financial year, followed by another estimated share of the revenue receipt of the Rs 330 billion in collection of sale tax while shares of Rs 116 billion and Rs 51 billion are estimated in heads of Customs duties and Federal Excise.

Under 1% share of the Divisible Pool for War on Terrorism (WoT), the province is estimated to receive a receipt of Rs 108 billion. The receipt is being given in the recognition, the central role of Khyber Pakhtunkhwa in the war on terror, 1% share of the Gross Divisible Pool was also assigned to it in addition to its otherwise share.

The provincial government will also receive an estimated amount of Rs 43 billion in head of Strait Transfers, which included Rs 26 billion (Royalty on Crude Oil), Rs 11 billion (Royalty on Natural Gas), Rs 3 billion (Gas Development Surcharge) and Rs 3 billion (Excise Duty on Natural Gas).

The province will also receive an estimated revenue receipt of Rs 47 billion in head of Windfall Levy from the federal divisible pool.

In head of profits from hydro-electricity, the province will receive an estimated revenue receipt of Rs 111 billion, which included Rs 33 billion in head of net hydel profit (NHP) of the current year, Rs 37 billion (reconciled arears) and Rs 41 billion (unreconciled arrears (indexation).

Copyright Business Recorder, 2024