The Baloch Hal News

QUETTA, Dec 13: Balochistan is expected to get over one hundred billion rupees in the next financial year from the federal receipts which would be doubled than the figure that has been projected for current financial year.

Terming the new formula of distribution of resources between Federal Government and provinces and amongst the provinces as historic, the financial managers of Balochistan have said that for the first time in the history of country Balochistan would be able to get a huge amount.

It may be mentioned that total projected figure for the current financial year for Balochistan from federal receipts including divisible pool and straight transfers was 55 billion rupees under the sixth NFC- Award and amount from divisible pool was 40 billion rupees.

Sources of finance department government of Balochistan said that due to changes in the formula of distribution of resources amongst provinces and reduction in the share of Federal Government Balochistan would be able to get 83 billion rupees from the divisible pool which is 40 billion rupees more as compared to 43 billion rupees from the same head for the current financial year.

Sources said Balochistan had demanded for allocation of 10 percent of the amount on basis of scattered population from the 18 percent of resources that would be distributed for the first time in the history of country on the basis of other criteria including poverty, scattered population and revenue generation.

Though the demand of Balochistan was not accepted, however, both the Federal Government and other three provinces have given a guarantee to Balochistan that there would be no any reduction in the share of Balochistan from divisible pool.

“This is a big success for Balochistan as it had always received four to five billion rupees less from the projected figure but now it has been assured that there would be no reduction in the share of Balochistan in case of less collection of taxes” sources added.

They said that besides 83 billion rupees from the divisible pool Balochistan would get over 10 billion rupees from straight transfers while it would be provided 10 billion rupees from the outstanding amount of 120 billion rupees under the head of Gas Development Surcharge (GDS) that was announced in Aghaz-e-Haqooq Balochistan Package.

Sources said that though political leadership had played an important role to get more resources for Balochistan but the credit of it goes to a great extent to Mehfooz Ali Khan, the secretary of Finance Government of Balochistan for hard work to prepare an effective case for the province.

Sources said that Secretary Finance Government of Balochistan not only played an important role for ensuring more resources for Balochistan but he proved helpful for the other provinces also in terms of reduction of collection charges of Federal Board of Revenue (FBR) from five percent to one percent.

It may be recalled that on pointing out by Mehfooz Ali Khan, the Balochistan Government had raised objection over the five percent collection charges because amount under this head was many times high from the actual expenditures of FBR.

Sources claimed that annual expenditures of FBR were not more than 10 billion rupees annually but contrary to actual expenditures FBR used to collect over 70 billions in accordance with 5 percent collection charges.

They said that because of efforts of Balochistan, provinces would get around 60 billions additional resources after accepting of their stance by the federal Government that 5 percent collection charges by FBR was unconstitutional.

The financial managers of Balochistan are of the view that more resources in the next NFC award would provide a sound financial base for Balochistan provided that these were utilized properly. Ends