Government of Pakistan Finance Division – Clarification

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This is with reference to the statement by Mr. Murtaza Wahab on 15th June 2020 that “SINDH GETS RS.234 BILLION LESS IN NFC AWARD:  published in a section of press.

The official spokesperson of the Finance Ministry likes to clarify thatat the start of each financial year, FBR gives estimates of tax collection during the financial year. Based on those estimates, the share of each province under the 7th NFC Award is conveyed for budget preparation. However the release of share of each province depends on actual collection of taxes reported by FBR and not on estimates as provided under the 7th NFC Award.

 The share of Sindh in the divisible pool taxes and grant-in-aid was estimated to be Rs.781 billion for the current financial year 2019-2020 based on estimated FBR Receipts of Rs.5,555 billion. However, FBR collected Rs.3,670 billion up to May, 2020 due to various factors. Based on this actual collection, the share of Sindh Province together with grant-in-aid stood  out to be Rs.484 billion (up to May 2020) in accordance with the 7th NFC Award (24.55% share of Sindh Province) and the same stands released. The Federal Government has not withheld any amount from due share of the province of Sindh.

                   It is further pointed out that the estimates of FBR receipts have been revised at Rs.3,908 billion till June, 2020. Based on this revised figure, the share of Sindh works out to be Rs.549 billion and the same has already been conveyed to the provincial government. The release will, however, depend on the actual collection by FBR.