ISLAMABAD - The federal government’s inability to collect the annual revenue target of Rs 2381 billion during last financial year 2012-2013 had reduced the provincial share from divisible pool that affected provinces budgets.

According to the documents, the provincial share in the divisible pool was estimated at Rs 1458.92 billion but provinces received Rs 1214.98 billion during the last fiscal year 2012-2013 mainly due to reduction in overall revenue collection.

The FBR had miserably failed to achieve the revenue collection target by 445 billion, as it collected Rs 1936 billion against the annual target of Rs 2381 billion during previous financial year 2012-2013.

“The provincial share in divisible poor is subjected to FBR performance regarding achievement of the budgeted revenue collection targets”, said a finance ministry official. However, the provincial tax collection is also very low, as all four provincial governments had collected only Rs 150.723 billion during last fiscal year 2012-2013.

The documents revealed that Punjab province had received Rs 569.32 billion as provincial share in federal share, which was budgeted Rs 710.3 billion during the previous financial year 2012-2013. The Sindh province had received Rs 320.737 billion from divisible poor that was budgeted at Rs 373.62 billion.

The Khyber Pakhtunkhawa province had received Rs 199.61 billion as provincial share in federal share, which was budgeted Rs 241.75 billion. The Balochistan province received Rs 125.323 billion from divisible pool that was budgeted Rs 133.26 billion during last financial year.

However, the provincial governments had recorded surplus budgets during previous financial year 2012-2013 despite decrease in their share from divisible poor. The provincial governments expenditures stood at Rs 1481.58 billion against their revenue Rs 1544.43 billion, leaving budget surplus at Rs 62.86 billion during last financial year 2012-2013. The volume of surplus could have been further higher if they had received budgeted share in the divisible pool.

The surplus budget of Rs 62 billion helped the federal government to restrict budget deficit at 8 percent of the GDP; otherwise it would have 8.2 percent of the GDP during last financial year.

According to the figures, the Punjab province recorded budget surplus of Rs 10.877 billion during previous financial year 2012-13, as expenditures were recorded at Rs 690.882 billion against the revenue of Rs 701.759 billion. The Punjab government collected taxes worth of Rs 77.383 billion and received Rs 569.32 billion as provincial share in federal share.

The Sindh province recorded budget surplus of Rs 41.417 billion during last financial year. The expenditure of the Sindh province was recorded at Rs 404.253 billion as compared to the revenue of Rs 445.68 billion during period of the year 2012-13.

The Sindh government accumulated taxes worth of Rs 68.14 billion and it received Rs 320.737 billion from divisible poor.

The figures further revealed that Khyber Pakhtunkhwa province recorded budget surplus of Rs 4.219 billion, as expenditures were recorded at Rs 248.088 billion against the revenue of Rs 243.869 billion. The tax collection of KPK stood at only Rs 4.092 billion and it got Rs 199.61 billion as provincial share in federal share.

The Balochistan province recorded budget surplus of Rs 14.781 billion. The expenditure of the Balochistan province was recorded at Rs 138.353 billion as compared to revenue of Rs 153.134 billion during financial year 2012-13. The Balochistan government collected taxes worth of Rs 1.107 billion and province received Rs 125.323 billion from divisible pool.