PESHAWAR, Dec 23: The NWFP government is not likely to receive the full amount for the financial year 2003-04 Islamabad has pledged to provide it as a grant, for supporting the functioning of district governments, official sources said.

Estimates of the provincial government’s current revenue receipts include an amount of Rs 1095.571 million NWFP has been projected to receive from the federal government as a grant, in lieu of octroi and district tax (zila tax), for distribution among 24 district governments during the 2003-04 financial year.

On a proportionate basis, said one finance manager, the province should have been handed around Rs 456.45 million for the first five months of the current financial year.

The purpose of the grant amount is for extending financial support to the 24 local government organisations in the NWFP which have been facing an acute financial crisis. In an attempt to help them overcome their financial woes the federal government announced it would make a special allocation for them under the general sales tax head.

Out of the total annual revenue under the GST head, 2.5 per cent funds were to be transferred to the provinces for onward distribution among their respective district governments as grant in lieu of octroi and zila tax.

One of the official sources expressed the hope that transfers under this head might record an improvement during the fourth quarter of the current financial year. However, in view of last year’s position the provincial government’s chances remain thin as far as receiving the full amount was concerned, said an officer.

During the 2002-3 financial year, against the annual projection of Rs 1008.393 million the province ended up with an amount of Rs 971.131 million — Rs 37 million less than the originally projected amount.