ISLAMABAD: The federal government in next fiscal year 2023-24 will transfer Rs5.27 trillion to the provinces from its revenues under the National Finance Commission Award. Gross Revenue at Rs12,163...
ISLAMABAD: The federal government in next fiscal year 2023-24 will transfer Rs5.27 trillion to the provinces from its revenues under the National Finance Commission (NFC) Award. Gross Revenue at Rs12,163 billion Transfer to Provinces Rs5,276 billion (Provincial Surplus Rs650 billion in the Total Expenditure Rs14,460 billion. The provinces expected to get a pie of Rs4.372 trillion in the new fiscal year of 2023-24 from their share in federal revenues under the National Finance Commission Award and straight transfers reflecting a 22.77 percent over revised budgetary allocation for the financial year 2022-23 which were estimated at Rs4.1 trillion. Out of the total revenues of the federal government in 2023-24, Punjab stands to get Rs2.626 trillion, Sindh Rs1.304 trillion, Khyber-Pakhtunkhwa Rs866.573 billion (inclusive 1% war on terror) and Balochistan Rs479.053 billion in the new fiscal year of 2023-24.
The Punjab was allocated Rs2.040 trillion, Sindh was allocated a Rs1.019 trillion for the current fiscal year, Khyber Pakhtunkhwa was allocated Rs678.588 billion for the current fiscal year and Balochistan which was allocated Rs389 billion for the current fiscal year. The break-up of Rs5.27 trillion which would be transferred to the provinces under the NFC formula, showed that Rs5.138 trillion would be transferred from the divisible pool. The break-up of divisible pool taxes showed that Rs2.108 trillion would be from income tax, Rs469 million capital value tax, Rs1.958 trillion sales tax (Excluding GST on Services), Rs404.710 billion federal excise duty and Rs667.220 billion customs duty in the fiscal year 2023-24.
Similarly, the break-up of straight transfers of Rs137.428 billion showed that 13.72 billion would be accumulated as Gas Development Surcharge, Rs62.552 billion from Royalty on Natural Gas, Rs42.277 billion from Royalty on Crude oil and Rs18.879 billion from Excise on Natural Gas. The provinces agreed sharing divisible pool under the National Finance Commission award that will take place on the basis of 82 percent population, 10.3 percent poverty and backwardness, five percent on revenue collection/generation and 2.7 percent on inverse population density. One percent of the net proceeds of the divisible pool would be assigned to the government of Khyber-Pakhtunkhwa to meet the expenses on the war on terror.