PESHAWAR, Dec 11: NWFP would make an elaborate case, at the December 12 meeting of the National Finance Commission, for seeking raise in the size of its annual straight transfers to be projected under the new NFC award, according to official sources.

“The proposed size of the straight transfers projected for NWFP for five years under the new NFC award is a cause of concern for the provincial government,” said an official source closely involved in NWFP’s preparatory works viz-a-viz new NFC award.

The proposed size of straight transfers for the five-year term of the new NFC award has been shared with the provincial

government along with proposed projections of expenditure and revenue for the same

period.

The proposed projections of straight transfers, said an official source, if not changed, would leave the province at a disadvantageous position as, in the case of the NWFP, the annual increase would be negligible when compared with other provinces.

NWFP receives straight transfers on account of net hydel profit whereas in the case of Sindh, Punjab and Balochistan straight transfers come in the form of royalty on gas.

“When compared with the rate of annual increase in the case of royalty on gas, the proposed growth rate determined for straight transfers to be made to the NWFP appears to be at the lower side,” said a finance manager of the province.

Besides seeking raise in the proposed size of its straight transfers, the NWFP, said the sources, would also stress for giving cover to straight transfers under the new NFC.

During the seven-year application of the existing NFC award NWFP received straight transfers [net hydel profit] at an annual rate of Rs6 billion — much less than the annual projections contained under the current NFC for the first five years starting from 1997-98 financial year.

Tough stand adopted by the last military-backed civil government in the province over the question of getting net hydel projections reflected under the new NFC award and un-capping of the annual share was one of the core issues which the NFC could not decide amicably.

“The Muttahida Majlis-i-Amal led NWFP government is not going to show flexibility on the stand adopted by the last provincial government and would make a strong case for getting its demands met,” said a senior government functionary.

Official sources said that though the federal government had provided the provincial governments with the data (proposed projections of revenue and expenditure for the next five years) compiled by the NFC — constituted by the last military government — the NWFP’s representatives would ask for increasing the federating units from the federal divisible pool.