Provinces get one week to end rifts: Sixth NFC Award -DAWN


21 May 2004	Friday	01 Rabi-us-Saani 1425

Provinces get one week to end rifts: Sixth NFC Award
By Our Reporter

ISLAMABAD, May 20: The federal government has asked provinces to sort out their differences over the 6th National Finance Commission award within a week , failing which the new budget will be announced without any increase in their allocations.

Official sources told Dawn on Thursday that Prime Minister Mir Zafarullah Jamali would meet chief ministers in Islamabad next week in a bid to forge a consensus over the new NFC award.

The sources said that an urgent message had been sent to provinces to iron out their differences before it was too late. The president and the prime minister have been informed about the differences among provinces and both the leaders have directed the finance ministry to take up the matter afresh so that the next year's budget could be announced along with a new formula for resource distribution.

"The main hurdle in finalizing the next NFC award is differences among provinces over the distribution formula," a senior official of the finance ministry told Dawn.

He said the centre was ready to set provinces' share in the federal divisible pool at 47 per cent. However, the ceiling could be slightly increased if the president and the prime minister so directed.

The provinces are seeking 50 per cent share in the divisible pool, but they have so far failed to reach consensus on the sharing of resources among themselves.

"We tried to help settle the issue but the provinces are not able to narrow down their differences and the president and the prime minister have been informed about the situation," the official said. He expressed the hope that the provinces would respond to the latest effort of the finance ministry to resolve their differences.

"Otherwise we will be forced to leave the National Finance Commission issue to be taken up after the announcement of the federal budget," the official said, adding that in that case the previous formula for resource distribution would be used for funds' distribution.