June 10, 2003	Tuesday	Rabi-us-Sani 9, 1424

PESHAWAR, June 9: Despite the fact that NWFP has been getting capped share amount of Rs6 billion for the last several years on account of net hydel profit, the provincial government will project high side figure under the same head in its revenue receipts budget for 2003-04.

Continuing with the past practice on the part of successive NWFP governments, the MMA-led provincial government will too project the total receivable on account of net hydel profit for the new financial year at a level 11 per cent over and above the benchmark set for the out-going financial year — in line with the disputed AGN Kazi committee’s formula.

Though the province, said sources, was not likely to get beyond Rs6 billion on account of net hydel profit in the financial year 2003-04, the provincial government had opted to pitch the revenue receipts under the said head for the new financial year at Rs17.653 billion. The benchmark for the new financial year is being set by effecting 11 per cent increase in the NWFP’s claim for the financial year 2002-03.

In accordance with the AGN Kazi committee’s formula, NWFP was liable to receive Rs9.423 billion net hydel profit in the financial year 1997-98, Rs10.466 billion in 1998-99, Rs11.624 billion in 1999-2000, Rs12.899 billion in 2000-01 and Rs14.328 billion during the financial year 2001-02.

However, in none of the financial years the province received beyond Rs6 billion — the capped share amount the province has been receiving since the financial year 1992-93.

The AGN Kazi committee, constituted in 1987, had asked for increasing the provincial government’s share by 11 per cent in every new financial year. Under the same approach, the last provincial government had set the last financial year’s projection at Rs15.904 billion.

Against this the province has so far received Rs4 billion during the financial year 2002-03 and is likely to get Rs2 billion more by the end of the current financial year.

The successive provincial governments, said the sources, had been projecting the net profit share at high side what they thought to reserve their claim in accordance with the AGN Kazi formula. However, this practice has been causing budgetary distortions and imbalances after the province has been ending up with Rs6 billion in every financial year for the last several years.