PESHAWAR, March 11: The NWFP received about Rs10bn from the Federal Divisible Pool (FDP) during the first seven months of the current financial year, according to official sources.
The funds released during July-January 2002-03 make slightly over 46 per cent of the total amount the federal government had initially estimated to transfer to the province from the FDP during this fiscal year.
Islamabad had projected to transfer Rs21.56bn from the FDP to NWFP during 2002-03. The FDP share of the province had been calculated on the basis of its share in the total national population — in accordance with the resource distribution formula laid down by the current National Finance Commission (NFC) award.
However, the money released so far left the province with little hope to receive what it had been initially projected to be released from the FDP in 2002-03.
Shortfall in the direct federal transfers, made from the FDP, to NWFP is directly related to the revenue generated by the Central Board of Revenue (CBR).
The official circles here believe that in view of the resource transfer position of the first seven months of this fiscal, the NWFP is likely to get around Rs2.5bn less than the initially projected amount of Rs21.56bn.
“Certainly, this situation has negatively affected the NWFP’s budgetary plan for 2002-03,” remarked an official of the provincial government.
The Rs21.56bn FDP share makes 56 per cent of the total annual revenue receipts the NWFP is likely to end up at the close of the 2002-03, hence, said the sources, reduction in the size of the FDP share would leave the provincial kitty under pressure.
However, this would not be the first time that the province would receive less than the initially projected amount from the FDP.
The province received slightly over Rs19.7bn from the FDP during the 2001-02 against the initially projected share of Rs21.5bn.
“Though the revised allocation [from the FDP] for the current fiscal year is not yet known, it is expected that the province would receive even less than the downward revised FDP share for this fiscal year — in line with the past,” apprehended a well-placed official.
However, according to sources, the situation is better during the current fiscal year in view of the fact that fiscal transfers to province(s) from the FDP recorded improvement this time round in comparison with the last financial year.
In the case of NWFP, said the sources, a total of Rs8bn had been transferred to it from the FDP during the first seven months of the last financial year, less Rs2bn in comparison with the current fiscal year.
