Sindh government gets share as per NFC formula: finance ministry

Sindh government gets share as per NFC formula: finance ministry

The Sindh government is set to receive its share as per the National Finance Commission (NFC) formula, as clarified by the federal finance ministry in a statement released on Thursday.

This statement aims to address reports suggesting that the federal government had made reduced transfers to Sindh during the current fiscal year.

The finance ministry emphasized that during the first half of the fiscal year 2017-18, the Federal Board of Revenue (FBR) reported a total tax collection of Rs 1,845.3 billion, which includes arrears from the previous year. In contrast, during the same period of the current fiscal year, the FBR reported a tax collection of Rs 2,011.4 billion, which also includes arrears from the previous year.

Regarding the share transferred to the Sindh province, the ministry clarified that during the same period of the last fiscal year, an amount of Rs 251.5 billion was transferred, while during the current fiscal year, an increased amount of Rs 275.2 billion has been transferred, reflecting a growth of 9.4 percent.

The finance ministry’s statement is intended to address any misconceptions and ensure transparency regarding the allocation and distribution of financial resources among the provinces as per the NFC formula. The statement emphasizes that both in absolute and percentage terms, the transfers have increased from the previous year.

The finance ministry further clarified that the federal government promptly transfers the respective shares to all the provinces, in accordance with the NFC formula. These transfers are based on the revenue collection reported by the Federal Board of Revenue, as mandated by the formula.

The NFC formula plays a pivotal role in the distribution of financial resources among the provinces, ensuring an equitable allocation of funds for development and governance. Each province’s share is determined based on various factors, including population, revenue collection, and specific needs.

The clarification from the finance ministry reaffirms the government’s commitment to upholding the principles of the NFC formula and ensuring that each province receives its allocated share in a timely and transparent manner.

The statement also highlights the government’s intention to foster cooperation and financial stability among the provinces, enabling them to effectively pursue their development goals and meet the needs of their respective populations. This commitment to equitable resource allocation is essential for the socio-economic growth and progress of Pakistan as a whole.

Overall, the finance ministry’s statement provides clarity regarding the financial transfers to Sindh and underscores the government’s dedication to the fair distribution of financial resources among all provinces, in accordance with the NFC formula. This approach is vital for enhancing fiscal and economic stability and supporting the development aspirations of the provinces and the country as a whole.