ISLAMABAD   -  The federal government has transferred Rs663 billion to the four provinces under National Finance Commission (NFC) Award that enabled the provinces to give surplus budget during first quarter (July to September) of the current fiscal year.

The federal government is bound to transfer 57.5 percent of the resources to the four provinces under the 7th National Finance Commission (NFC) Award. According to the NFC Award, the federal government has to transfer Rs2,590 billion to four provinces during ongoing fiscal year. Meanwhile, the centre has disbursed more than 25 percent of the annual amount in first quarter despite Federal Board of Revenue (FBR) faced massive shortfall in tax collection. The FBR has faced shortfall of Rs60 billion during July to September period as it collected Rs832 billion. The federal government has transferred Rs662.8 billion to four provinces under NFC during first quarter of the ongoing financial year.

The provinces revenue after receiving their share from federal government has gone up to Rs787.2 billion in first three months of current fiscal year. On the other hand, provinces expenditures remained at Rs540.6 billion during July-September period enabling four provinces to record budget surplus of Rs246.6 billion. The provincial governments' surplus budget of Rs246.6 billion helped the federal government to restrict the budget at 1.4 percent of the GDP.  The federal government projected the provincial governments to provide Rs285.6 billion surplus over the full fiscal year, according to the documents of ministry of finance.

The Punjab government's revenue has recorded at Rs390.6 billion as compared to the expenditures of Rs264.1 trillion making surplus of Rs126.5 billion. The Punjab government has received Rs325.8 billion from the federal government during first three months of the current fiscal year, which is 25.4 percent of the annual share of Rs1282 billion. The Punjab province has generated only Rs42.6 billion from provincial taxes during the period under review.

The Sindh province has registered budget surplus of Rs64 billion as its revenues remained at Rs209.4 billion as against expenditures of Rs145.3 billion. The Sindh government has received Rs163.4 billion from the federal government during July to September period of the year 2018-19. The Sindh would receive Rs648.8 billion during entire current fiscal year. Sindh has generated only Rs40 billion from its own sources during the period under review.

The Khyber Pakhtunkhwa's revenues recorded at Rs116 billion as against its expenditures Rs86.6 billion making surplus of Rs29.4 billion. The province has received Rs107.7 billion from the federal government under NFC during first quarter of the current fiscal year. The KP received one percent additional funds under the NFC Award due to the war on terror. The province has generated only Rs4.1 billion from its own taxes.

The Balochistan province has given budget surplus of Rs26.7 billion as its expenditures recorded at Rs44.6 billion as compared to the revenues of Rs71.2 billion. The province has received Rs66 billion in first three months from the federal government, which is 28 percent of Rs233.2 billion to be released in the ongoing financial year under NFC. The Balochsitan province has accumulated Rs2 billion from the provincial taxes during previous fiscal year.