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| July 11, 2006 | Tuesday | Jumadi-ul-Sani 14, 1427 |
NWFP revenue shortfall at Rs6 billion in 2005-06
PESHAWAR, July 10: The NWFP recorded a revenue shortfall of over Rs 6 billion against its projected current revenue receipts of Rs 58.3 billion for 2005-06. The government has experienced a shortfall of over Rs1 billion in revenue receipts on account of subvention/special grant in the 2005-06 financial year after the federal government did not release the promised funds, official sources say.
The provincial government had projected to receive Rs5 billion subvention from the federal government during the financial year ended on June 30.
However, the province has so far been provided a total of Rs 3.89 billion in line with its National Finance Commission Award share.
Before fresh amendments were made in the 1997 NFC award, only the NWFP and Balochistan used to get certain funds, other than federal tax assignments and straight transfers from the federal government, to offset their underdevelopment.
In 2003-04 and fiscal years before that, the NWFP received Rs3.89 billion a year as subvention, the federal government had promised to enhance the amount to Rs5 billion during 2005-06.
A budgetary projection to the effect had been made in the 2005-06 budget.
“Though the province has reflected the high side projection under the revised estimates of revenue receipts for the last financial year, it seems that the federal government has backed out of its commitments,” said a provincial finance manager.
A commitment for raising the NWFP’s share of subvention, said the sources, had been made by Prime Minister Shaukat Aziz during a meeting with the NWFP Chief Minister Akram Khan Durrani, last year before the provincial government presented the annual budget for the 2005-06.
The provincial government, in its budget for 2005-06, had projected receipts of Rs5 billion from the federal government as grant other than subvention. The same had also been reflected in a promise made by the prime minister, said the official.
This had been officially pronounced by both the provincial Chief Minister Akram Khan Durrani and Senior Minister Sirajul Haq at the time of presenting the last year’s budget in June 2005.
However, proceeds against the said projection stood at zero-level at the close of the 2005-06 financial year after the federal government did not release anything against the ‘promised’ amount.
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