PESHAWAR, June 13: The NWFP government will receive Rs671 million more than the initially projected estimates during the financial year of 2004-05 from the federal divisible pool (FDP) releases and as straight transfers from the centre. Before the beginning of the out-going financial year, the federal government had projected to release Rs28.5 billion to the province, including Rs27.7 billion against its FDP share and Rs763.4 million straight transfers.

However, the revised estimates of the FDP disbursements and straight transfers made to provinces have reflected that the NWFP’s cumulative share on both the counts have been raised by over Rs671 million.

Now, according to official sources, the NWFP would get Rs29.2 billion during the outgoing financial year instead of Rs28.5 billion.

According to the revised estimates, said the sources, the province would get Rs28.3 billion from the FDP and Rs893.9 million as straight transfers that include royalty on crude oil and natural gas, gas development surcharge, excise duty on natural gas and share in general sales tax.

The provincial government, according to its finance managers, appears hopeful of getting what it has been projected under the revised estimates.

By the end of the first nine months of the current fiscal year, said the sources, the province received about Rs20 billion from the federal government, inclusive of disbursements from the FDP and proceeds on account of straight transfers.

“In view of the revenue recorded by the Central Board of Revenue, the province is likely to get the FDP share and straight transfers in accordance with the revised estimates recently communicated to the provincial government,” said an official.

While the overall straight transfers have been enhanced under the revised estimate, there is one head under which the province will receive funds less than the initially projected figures.

Against the initial projection of Rs406 million on account of general sales tax share, the province will get Rs392 million, recording a shortfall of Rs14 million.

Other than that, in all other heads of straight transfers the province will get increased amount of funds from the centre.

It will get Rs296 million on account of royalty on crude oil instead of the initial estimates of Rs187 million, Rs126 million royalty on natural gas instead of Rs117 million and Rs53 million on account of gas development surcharge in place of Rs51.5 million.

While the province had not been promised any amount under the head of excise duty on natural gas, the revised estimates reflect that the province will receive Rs24.5 million under this head.

Therefore, according to official sources, the province has opened up a new account of proceeds from the centre, helping it to expand its income base in the years to come.

Official sources, however, said that it would take some time before the province got full amount of the funds projected under the revised estimates.

“The provincial government kept on getting instalments of its FDP share for 2003-04 till few months back and in the light of this experience, it is expected that the proceeds for 2004-05 would continue coming even during the next financial year,” said an official.

The federating units, said the sources, were made disbursements from the FDP on the basis of revenue raised by the CBR up to June 25 every year and the proceeds against the remaining five days were released to them at a later stage in the new financial year.

“In the backdrop of this practice, the Frontier province received about Rs1 billion during 2004-05, which actually pertained to the 2003-04 financial year,” said the officer.