December 25, 2003	Thursday	Ziqa’ad 1, 1424

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ISLAMABAD, Dec 24: The centre is expected to increase the provincial share of the federal divisible pool to 46 per cent (including GST) from 42.5 per cent under the 6th National Finance Commission (NFC) award, Dawn has learnt.

The federal government is working out details of the increase, besides trying to ascertain which additional responsibilities can be transferred to the provincial governments, informed sources told Dawn.

“A middle course would have to be achieved”, a government official said, adding that the provinces were asking for 50 per cent share but the federal government had indicated to go beyond 42.5 per cent, already agreed to early last year.

The next NFC meeting will be held on Jan 2 in Islamabad to further deliberate on the sixth NFC award.

When contacted for comments whether the federal government intended to increase the provincial share to 46 per cent, a senior finance ministry official requesting anonymity said: “This could be the agreement point (between the provinces and the federal government.”

Responding to another question on the proposed new formula for gas development surcharge (GDS) being demanded by Balochistan, he said the matter had been assigned to the petroleum secretary for resolution.

When asked to comment on the NWFP finance minister’s statement that the province would not sign the NFC award unless its hydel profit arrears of Rs342 billion were cleared, he said that it then would not be a consensus award and resources would have to be shared between the centre and the federating units through a majority vote.

He remarked that GDS was part of the NFC but hydel profit was outside the NFC ambit.

Petroleum Secretary M. Abdullah Yousaf, when contacted, said the centre had asked the provinces to reach some understanding among themselves on a new formula on GDS but they had not yet contacted the federal government in that respect.

A source said the provinces had been demanding an increase to 50 per cent in their share of the federal divisible pool and the demand had been supported by the National Reconstruction Bureau.