PESHAWAR, July 12: The NWFP government is optimistic about recording 15 per cent increase in revenue receipts on account of royalty on oil and gas during the next couple of years.
In its medium-term budgetary framework (MTBF), prepared for the next four financial years, the provincial government has estimated its income from royalty on oil and gas to grow from Rs1.74 billion in fiscal 2006-07 to Rs2 billion in 2007-08.
Similarly, revenue receipts under the said head have been estimated at Rs22.3 billion for 2008-09 and Rs2.63 billion in 2009-10.Finance managers of the province have estimated that receipts on account of royalty on oil and gas would grow by 32.9 per cent during 2006-07 compared to the receipts recorded in the fiscal year ending on June 30, last.
However, receipts have been estimated to grow at an annual rate of 15 per cent during the 2007-08, 2008-09 and 2009-10 after taking the 2006-07 as the base year.
It is only recently that the NWFP started receiving funds on account of royalty on oil and gas after Shakar Darra oil and gas field, near Kohat, started commercial operations.
The province had received an amount of Rs139 million on account of royalty on crude oil and Rs53 million as royalty on natural gas in the year 2003-04.
Whereas, in the following financial year (2004-05) it recorded improvement under this head after receiving Rs296 million on account of royalty on crude oil and Rs126 million as royalty on natural gas.
Officials said that the provincial government's optimism was based on the consistent growth in receipts under this new revenue head recorded during the last three financial years.
The government had projected to raise Rs214 million on account of royalty on crude oil and Rs253 million as royalty on natural gas during the last financial year. However, against its expectations it ended up with receipts much higher than its initial estimates.
According to the revised revenue receipts estimates of the NWFP government for the 2005-06 financial year, the province received Rs 532 million under the head of royalty on crude oil and Rs440 million on account of royalty on natural gas."Keeping in view the steady progress made by receipts under the said head during the last three years, the provincial government stands a fair chance to record further improvement in its receipts on account of royalty on crude oil and natural gas,” said a finance manager of the province.