Provinces to get Rs7.438tr under NFC Award this fiscal

ISLAMABAD: The federal government will transfer Rs7.438 trillion to the provinces from its revenues under the National Finance Commission Award in the next fiscal year.

The provinces are expected to receive a total of Rs7.438 trillion (Rs7,438 billion) in the fiscal year 2024-25 from their share in federal revenues under the National Finance Commission Award and straight transfers, reflecting a 37.07 percent increase over the revised budgetary allocation for the financial year 2023-24.

Out of the total revenues of the federal government in 2024-25, Punjab stands to receive Rs3.695 trillion (Rs3,695 billion), Sindh Rs1.853 trillion (Rs1,853 billion), Khyber-Pakhtunkhwa Rs1.221 trillion (Rs1,221 billion), and Balochistan Rs667 billion.

In the ongoing fiscal year 2023-24, Punjab was allocated Rs2.66 trillion, Sindh Rs1.34 trillion, Khyber-Pakhtunkhwa Rs895.145 billion and Balochistan Rs494.587 billion. The breakdown of the Rs7.438 trillion to be transferred to the provinces under the NFC formula in the next fiscal year 2024-25 shows that Rs7.24 trillion will come from the divisible pool. The breakdown of divisible pool taxes is as follows: Rs3.055 trillion from income tax, Rs8.981 billion from capital value tax, Rs2.786 trillion from sales tax (excluding GST on services), Rs536.89 billion from federal excise duty and Rs854.62 billion from customs duty in the next fiscal year 2024-25. Similarly, the breakdown of straight transfers of Rs195.176 billion is as follows: Rs24.6 billion from the Gas Development Surcharge, Rs101.67 billion from royalty on natural gas, Rs57.48 billion from royalty on crude oil and Rs11.426 billion from excise duty on natural gas.