ISLAMABAD                   -                The four provinces had not utilised their budgets that resulted in a massive budget surplus of Rs343.5 billion to the Centre during first nine months (July-December) of the ongoing financial year (FY20).

The provincial expenditures registered at Rs2.123 trillion as compared to the revenues of Rs2.467 trillion in nine months of the FY20, showing budget surplus of Rs343.5 billion, according to the latest data of ministry of finance. The massive surplus budget helped the federal government in restricting budget deficit at Rs1.686 trillion (3.8 percent of the GDP) in July-March period of FY20.

The provincial governments’ surplus budget showed that they had not utilised their budgets on development activities in the provinces. The provinces could use the revenues in development projects, which would help in generating economic activities and employment generation. The provinces received major portion of their revenues from the federal government under the National Finance Commission (NFC) award.

Provincial governments had received Rs1.931 trillion from the federal government under the NFC in July-March period of the year 2019-20. Meanwhile, four provinces had collected taxes of only Rs321.2 billion making the total revenues of the provinces at Rs2.467 trillion. On the other hand, provinces had spent Rs2.123 trillion and returned Rs343.5 billion to the federal government to restrict its budget deficit.

Under the 7th NFC award, the federal government is bound to transfer 57.5 percent of the resources to the four provinces. The provincial governments get shares from the federal government under NFC award as per the said formula. Punjab gets 51.74 percent, Sindh 24.55 percent, Khyber-Pakhtunkhwa 14.62pc and Balochistan 9.09 percent.

Punjab

Punjab province had recorded budget surplus of Rs89.3 billion during July-March period of the ongoing fiscal year. The expenditures registered at Rs1.032 trillion as compared to the revenues of Rs1.122 trillion. However, the major chunk of the revenues came from the federal government under divisible pool. The Punjab government had received Rs922.2 billion from the federal government during first nine months of the current fiscal year. Meanwhile, the province had generated only Rs153 billion from its own sources.

Sindh

The province had shown budget surplus of Rs74.95 billion in nine months period, as it expenditures recorded at Rs569.74 billion compared to the revenues of Rs644.69 billion. Sindh government has received Rs476.02 billion from the federal government during July to March period of the year 2019-20. The Sindh government collected Rs136.9 billion during first nine months of the year 2019-20.

Khyber-Pakhtunkhwa

The KP’s budget surplus had recorded at Rs115.9 billion. Expenditures of this province had registered at Rs334.8 billion as compared to the revenues of Rs450.8 billion. The KP’s tax collection had recorded at Rs18.95 billion in first half of the last year. The province has received Rs312.97 billion from the federal government under NFC during first nine months of the current fiscal year.

Balochistan

This province had also recorded budget surplus of Rs63.35 billion. Balochistan expenditures had remained at Rs186.88 billion as compared to the revenues of Rs250.23 billion. Balochistan’s tax collection had recorded at Rs12.3 billion. Balochistan had received Rs220.4 billion from the federal government under the NFC award.