KARACHI-The Sindh government has recorded over Rs8 billion shortfall in federal receipts as Federal Government released Rs80 billion against budgetary estimate of Rs88.9 billion of Sindh during six months of current financial year 2008-09, official sources told The Nation. While announcing federal budget of FY08-09, the Islamabad had fixed Sindh's share at Rs177.6 billion in terms of federal receipts, but the transfer of receipts were less than the prescribed share. According to provincial finance department the federal receipts released by the centre were 16 per cent less than share of Sindh in current fiscal. According to a senior official of Finance Department, out of Rs177.6 billion share allocated for Sindh in current fiscal, the province should have received Rs88.9 billion but, the actual amount received by the provincial government was Rs8 billion less than share in six month from July to December of FY09. These federal receipts are consisted of various components such as Revenue Assignments-share in taxes Income tax, Sales tax, Central Excise Duty, Custom Duty, GST on Services. These taxes are part of NFC award while every province gets share on its population basis. According to official sources, the province has recorded 16 per cent shortfall in federal transfers of Revenue Assignment as province received Rs42 billion against its share of Rs51 billion during six months. According to breakup of Revenue Assignment, the Sindh received Rs17 billion in terms of Income tax, showing 23 per cent less than its budget estimated share of Rs23 billion in six months. Similarly, Sindh also suffered shortfall of 6 per cent in Central Excise Duty as province got Rs4.7 billion against its estimated share of Rs5 billion during July-December of this fiscal. In Custom duty, against share of Rs8 billion of Sindh in six months, the federal government released merely Rs6.7 billion showing 16 per cent shortfall. However, concerned officials of Finance Department pointed out that Sindh faced huge shortfall of 56 per cent in terms of General Sales Tax on Services as province received one billion rupees against six months share of Rs2.5 billion. Sindh also received less money in terms of Straight Transfers, which is another important component of federal receipts for provinces. The straight Transfers are consisted of Royalty on Crude Oil, Gas Development Surcharge, Excise Duty on Natural Gas and Royalty on Gas. According to statistics available with The Nation, the federal government released Rs19 billion against six months budget estimated share of Rs21 billion. According to breakup of Straight Transfers, Sindh suffered 31 per cent shortfall in the receipts of Gas Development Surcharge (GDS) as province received Rs3.8 billion against Rs5.7 billion estimated for six months. Similarly, over 5.7 per cent shortfall faced to Sindh in six months of current fiscal as federal govt released around one billion rupees against Rs2.3 billion share estimated in the last budget. Meanwhile, federal government released more amount than Sindh's share in terms of two taxes-as province received Rs4 billion against estimated share of Rs3.5 billion in royalty on crude oil and Rs10 billion against estimated share of Rs8 billion in terms of royalty on gas during six months. Similarly, Sindh faced shortfall of about 11.2 per cent in terms of 2.5 per cent GST as province received Rs11b against Rs12.9 billion share estimated in budget for six months of current fiscal. It may be noted here that 2.5 per cent GST was also a bone of contentious between Sindh and federal government as Sindh has been protesting against making part to this tax of divisible pool of federal transfers because. According to a senior official of Finance Department, Sindh received Rs300 million less than its estimated share of Rs4.3 billion in six months in terms of special grants. The Previous Musharraf government had also let continue the present system of resource distribution on population basis while present PPP government very inception of its govt announcing budget fixed the provinces share on population basis. Sindh and other smaller provinces made cry over the preset mechanism of resource distribution but it never paid attention by powerful establishment of the country.