21 February 2004	Saturday	29 Zilhaj 1424

PESHAWAR, Feb 20: The provinces want the federal government to fulfil their expenditure requirements under the next National Finance Commission (NFC) award in the light of their spending needs determined according to the Islamabad's recently-prepared Poverty Reduction Strategy Paper (PRSP), sources told Dawn .

"The provinces think that the federal government should honour what it has reflected in the PRSP," said a well-placed source, adding that "it is their document and they should try to translate it into actions under the new NFC award".

The PRSP estimates Rs234 billion cumulative current expenditure requirements of four provinces for fiscal 2004-05, Rs264.5 billion for 2005-06, Rs293.6 billion for 2006-07 and Rs326.7 billion for 2007-08.

While the federal government's current expenditure requirements for 2004-05 have been estimated at Rs596.5 billion, Rs636.7 billion for 2005-06, Rs681.7 billion for 2006-07 and Rs737 billion for 2007-08.

National Finance Commission members of the provincial governments, said the sources, adopted a joint stand, at one of the last held meetings of the NFC, pressing for the provision of resources to the federating units under the new NFC award in line with their current expenditure requirements determined under the PRSP.

The PRSP estimates that total expenditure requirements of the country would stand at Rs1,027.2 billion in 2004-05, Rs1135.3 billion in 2005-06, Rs1264.7 billion in 2006-07 and Rs1423.3 billion in 2007-08.

Out of this money, total current expenditure requirements would stand at Rs830.5 billion for 2004-05, Rs901.2 billion for 2005-06, Rs975.3 billion for 2006-07 and Rs1064.4 billion for 2007-08.

While the Public Sector Development Programme (PSDP) expenditure has been estimated at Rs196.7 billion, Rs234.1 billion, Rs289.4 billion and Rs358.9 billion, respectively, for the same period.

Official sources said the provinces felt that the federal government document, which would make basis for future investment on the part of international donor agencies, should be implemented earnestly "by diverting sufficient flow of funds to the provinces to help them meet their growing expenditure requirements in the years to come".

"If the PRSP identifies the NWFP as the most poor province of the country, then the federal government should do the needful, under the new NFC award, to help the province overcome this peculiar issue which is the number one problem facing to the provincial government," said a source.

According to the PRSP, the level and intensity of poverty was closely linked with the pace and pattern of economic growth in urban and rural areas and income generating opportunities associated with such growth. It added that poverty was also related to the degree of social, political and economic inclusion or exclusion.