Islamabad: Under the National Finance Commission (NFC) Award, the federal government has so far distributed a total of PKR 1.8 trillion among the four provinces, a news source reported. The funds have been allocated for the July-to-March period of the current fiscal year 2018-19 (FY19).
The Ministry of Finance reports that the current amount distributed is higher by 7.9% as compared to the same period of the previous fiscal year. The authority revealed that the provinces’ share in the federal divisible pool is projected at PKR 2.59 trillion, subject to tax collections worth PKR 4.4 trillion by the Federal Board of Revenue (FBR).
Under the NFC Award, this amount has been distributed among the four provinces as follows:
Punjab received PKR 866.6 billion
Khyber-Pakhtunkhwa (KP) received PKR 290.4 billion
82% of the provinces’ share in the federal divisible pool is disbursed on the basis of population –as per horizontal distribution. The remaining 18% is then allocated on the basis of inverse population density, poverty & backwardness, and revenue collection & generation.
