KARACHI-Sindh province has suffered over Rs8.7 billion shortfall in federal transfers during first four months (July to October) of the current financial year 2008-09, official told The Nation. The Federal Government released Rs39 billion against budgetary estimate of Rs47.7 billion to Sindh government in four months in terms of federal transfers which consisted of tax assignments, straight transfers, GST on services, 2.5 percent GST in lieu of Octroi, Zila Tax and subvention grants. Sources in Sindh Finance Department disclosed that the total share of Sindh indicated by Federal Government amounted to Rs177.584 billion for current FY08-09. Almost on all the accounts of federal transfers, the federal government had released lesser amount to Sindh from its actual budgetary share in current financial year-09, sources said. Sindh has suffered severe shortfall of around Rs7.13 billion in terms tax assignment as federal government released total amount of Rs27 billion against budgetary estimate of Rs34.13 billion during July to October of current FY09. The revenue/tax assignment is the main component of federal transfers to provinces which consisted on various taxes such tax on income, sales tax, custom duties, capital value tax and wealth tax. The average contribution of Sindh in national tax collection is 65 percent annually but due to non-judicious distribution system of resources among the provinces as well as federal government and provinces has been impacting negatively on economic situation of province, says an official of Sindh government, adding that Sindh's share in national economy, agriculture and other sectors is impressive and even recognized by decision makers of the country but they never thought for bringing change in resources distribution formula. Similarly, a marginal decline of Rs1.5 billion was depicted in federal transfers on account of straight Transfers as total receipts were Rs12 billion during four months against budgetary estimate of Rs13.5 billion on this account. The Straight Transfers are consisted on Gas Development Surcharge (GDS), Royalty on Crude Oil and Royalty on natural gas. Meanwhile, federal government released Rs2.8 billion in terms of GDS to Sindh against Rs3.8 billion of budgetary estimates of four months of current fiscal, official said. However, Sindh also suffered shortfall in federal transfers on account of GST on Services, Subvention/Grants in Aids and 2.5 percent GST in lieu of Octroi and Zila Tax during four months.