Balochistan gets less than NFC share

Published September 19, 2002

QUETTA, Sept 18: Balochistan was deprived of Rs18 billion during 1997-2002 under the fifth National Finance Commission Award.

The province received less resources from the federal divisible pool during the five years.

In the first year, it received Rs2.5 billion less, in second year Rs5 billion, in the third year, Rs2.5 billion, in the fourth year, Rs6 billion and in the final year, Rs4 billion less than its share from the pool.

The budget presented in 2002 contained Rs3.8 billion less than its due share.

In case of subvention for the province to compensate for its backwardness and other adverse indicators in the economy, the provincial share should have been 2.5 per cent, but it was 1.6 per cent, sources pointed out.

Bulk of the resources received from donor agencies, friendly countries and international development agencies was spent in a province in the name of federal projects or federal spending.

Experts pointed out that Punjab had a contribution of 25 per cent resources in the national economy but it took away 58 per cent share.

Balochistan and Sindh could generate revenue through hydel electric power, natural gas, energy resources and sea, but the resources were taken away by the federal government.

There was a deficit of Rs1 billion in the current Balochistan budget and if it persisted, it would be Rs5 billion at the end of the sixth NFC Award.

It is indicated that the new award be on the basis of population, considering no other factor for distribution of resources among the provinces or between the federation and the federating units. “If it was the case at the end of the NFC parleys, then why the people were hoodwinked for the past 21 months by prolonging the deliberation,” experts said.

Balochistan is the least developed federating unit and it is the constitutional responsibility of the federal government to make enough resources available for its speedy development.

The province is facing severe drought for the past six year.

The Balochistan government has declared 22 districts calamity hit. The poverty level of interior of Balochistan was 50 per cent prior to the drought. Now it has jumped to 70 per cent or more in the rural areas.

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