ISLAMABAD, June 30: The federal government on Saturday released a total of Rs88.4 billion to all four provinces as revenue share under the 7th NFC Award in 2011-12.

The finance ministry issued Rs43.4 billion to Punjab, Rs23.4 billion to Sindh, Rs8 billion to Khyber Pukhtunkhaw and Rs6 billion to Balochistan.

With immediate receiving of this amount the Sindh government averted possible breach of overdraft limit with the State Bank as it had issued cheques worth Rs17 billion against available limit of Rs15 billion to clear salaries bill and make payment to suppliers.

This released amount would also help create a budget surplus to enable federal government to keep its budget deficit at desired level.

The provinces were asked to save Rs154 billion and create a budget surplus to enable federal government keep its budget deficit within desired limits.

However, later the creation of budget surplus limit was reduced below Rs100 billion keeping in view the financial difficulties of three smaller provinces.

Meanwhile, the Federal Board of Revenue continued chasing the collection target of Rs1.952 trillion for 2011-12 and till in the evening it had collected over Rs1.870 trillion excluding expected collection of Rs25 by the Sindh Revenue Board on account GST on services.

The FBR officials were hopeful of reaching at a reasonable total of tax collection by the deadline of 12:00 midnight when the counters of banks and tax offices were due to be closed down.

If the tax collection crosses Rs1.9 trillion it would be a landmark achievement under the prevailing law and order situation and gas and power shortages that had badly impacted productive sectors of the economy.

The FBR had announced a number of tax amnesty schemes in GST, Customs, Income Tax and FED and taxpayers had been allowed to avail facility of waiver from penalties and default surcharges and other legal proceedings in case they deposit their principal amount of tax by June 30, 2012.