PESHAWAR, July 22: The NWFP government received about Rs1 billion less than revised estimates of revenue receipts of federal tax assignments (FTAs) and straight transfers (STs) from the federal government during financial year 2005-06.
Against Rs37.3 billion of FTAs and STs to be released to the NWFP in accordance with its share under the National Finance Commission (NFC) award, the provincial government received about Rs36.3 billion during the last financial year.
In addition, the finance division, Islamabad, also released over Rs1 billion to the province against arrears under the two heads pertaining to financial year 2004-05.
The release of over Rs1 billion arrears has made provincial finance managers to believe that the shortfall recorded in last financial year’s FTAs and STs would be overcome in coming months.
They expressed the hope that the federal government would soon disburse funds among the provinces against their NFC share of the last financial year.
“It happened last year when the finance division kept releasing NFC-related funds pertaining to 2004-05 year to the provinces,” said a finance manager of the NWFP government.
However, the shortfall recorded under FTAs and STs affected provincial government’s fiscal plans during the last financial year.
Initially, Rs34.9 billion FTAs and Rs979 million STs had to be released to the province during 2005-06. Later, on the basis of federal government’s revised estimates, the provincial government also revised its FTAs and STs figures, raising them to Rs35.5 billion and Rs1.8 billion under the two heads, respectively.
According to official sources, receipts transferred by the federal government to the province on account of its share under FTAs and royalty on crude oil and natural gas remained less than revised projections communicated to the province during the last quarter of the financial year which ended on June 30.
The Rs1 billion shortfall, according to sources, added more to the financial crunch the provincial government experienced last year as a result of low amount of funds provided by the centre.
The province received Rs3.89 billion as subvention against the promised amount of Rs5 billion during the last financial year.
Similarly, against the additional grant of Rs5 billion promised by Prime Minister Shaukat Aziz, the province received nothing during 2005-06.
Its own estimates of receiving Rs8 billion from the Water and Power Development Authority on account of net hydel profit share for 2005-06 fell far short of bringing the projected amount. The province received Rs6 billion.
