ISLAMABAD (APP) The National Finance Commission (NFC) Secretariat has completed the draft of the Report of 7th National Finance Commission and the Summary for the Prime Minister, to obtain the Presidential assent to the NFC recommendations. It would be submitted next week, a senior official of the Finance Ministry said. According to the official the NFC Secretariat has made significant improvements in the draft of the report of 7th National Finance Commission compared to the earlier reports of NFCs established from time to time. He said the report, apart from containing the core signed agreement between the federation and the provinces (as well as amongst the provinces), contains the past history of National Finance Commissions, record notes and minutes of deliberations of 7th National Finance Commission as well as future action plan and mechanism for implementation/oversight. It is expected that Summary for the Prime Minister, to obtain the Presidential assent to the NFC recommendations, would be submitted within the next week, he said. He further noted that after promulgation of the Presidents Order, the Report of the Commission, together with an Explanatory Memorandum, giving details about actions taken thereon, shall be laid before the Parliament as provided under clause 5 of Article 160 of the Constitution. According to financial, experts, the just distribution of National Finance Commission Award would help the provinces to increase their expenditures on social sector development for welfare of the people. The provinces have been provided larger share in the National Finance Commission Award keeping in view their task for providing basic services including health, education, water supply and sanitation, Finance Minister Shaukat Tarin said. He added that size of divisible pool has been increased in the interest of national solidarity and provincial harmony. The Federal government, he said has also recognized the need of the provinces for a larger share in the divisible pool since provinces are assigned the task of provision of basic services like health, education, water supply and sanitation. In addition the divisible pool has been increased by reducing the collection charges from 5% to 1%, he remarked. Tarin said that NFC also recognized that sales tax on services is a provincial subject under the Constitution of Pakistan. The federal government and all the four provinces have recognized that the role of NWFP as a frontline state in the war on terror. The federal government has reiterated its commitment to bear all expenditures incurred on the war on terror. However, as a gesture of support by all provinces and the Federation 1% of the total divisible pool has been earmarked for NWFP as an additional resource for war on terror during the Award period, he added. This, he said would be equivalent to 1.83% of the provincial pool. Regarding the Vertical Distribution, he said the provincial share of the divisible pool has been increased from the present 47.5% to 56% in the first year of NFC and 57.5% in the remaining years of the Award. About Horizontal Distribution, the discussions among provinces on horizontal distributions of the divisible pool were held in a spirit of utmost cordiality and accommodation, which was a good omen for the country. It was also a good sign for the country that all four Provincial Chief Ministers actively participated in the discussions held across the country from time to time, he said. The long-standing demand of Sindh, NWFP and Baluchistan to distribute the divisible pool according to multiple indicators has also been accepted in the NFC. Under the new formula of NFC features that the Federation and the provinces of Punjab, Sindh and NWFP accepted the special needs of Baluchistan and agreed to provide Baluchistan Rupees 83 billion (9.09 %) of the provincial pool in the first year of the award. The federal government has assured that any shortfall in this amount would be made up by the Federal government from its own resources. This arrangement for Balochistan would also remain protected in the remaining four years of the Award. Under the agreed NFC formula, the multiple indicators and their weights, population has been given 82 percent weight, poverty/backwardness 10.3pc, revenue collection/generation 5pc and inverse population density 2.7pc. After giving effect to the special needs of Balochistan and application of the multiple indicators, Punjab province would get 51.74 percent, Sindh 24.55 percent, NWFP 14.62 percent and Balochistan 9.09 percent.