ISLAMABAD, June 7: The budget for 2003-04 has proposed an allocation of Rs214.83 billion for the four provinces from the divisible pool plus straight transfers from the federal taxes as against Rs192.81 billion in the revised estimates for the current year 2002-2003, showing an increase of Rs15.01 billion.

No fresh formula for the distribution of resources has been approved since 1996, when the last NFC award was announced.

The total allocation to the four provinces from the divisible pool and straight transfers at the beginning of current fiscal year was set at Rs193.51bn was reduced by Rs695.718 million by the year end to Rs192.81bn.

The share of Punjab in the divisible pool including straight transfers for the next year has been put at Rs106.73bn which was Rs96.15bn in the current fiscal year showing an increase to the tune of Rs10.58bn.

The share of Sindh in divisible pool as well as straight transfers which was Rs57.29bn in the current year has been allocated with an amount of Rs65.899bn showing an increase of Rs8.6billion.

Similarly, the allocations for the NWFP have been put at Rs25.061bn as against Rs22.266bn in the current year reflecting an increase of Rs3.797bn. Balochistan will be getting Rs17.140bn as against Rs17.1bn of the current year.

According to the formula of distribution of federal resources income tax, capital value tax, sales tax, GST (CE) central excise and customs duties come under the divisible pool whereas royalty on crude oil, royalty on natural gas, surcharge on natural gas, excise duty on natural gas and GST (provincial) has been put in the straight transfers head.

While royalty on gas and crude oil is meant for Sindh, Balochistan and Punjab the net profits on hydel power income which goes to the NWFP has not been included in either the divisible pool or among straight transfers.

The Frontier is getting a capped amount of Rs6bn per annum as against calculations standing at Rs15bn plus, according to the AGN Kazi formula and the NFC award of 1991.