ISLAMABAD – The federal government had transferred the entire budget amount to the provinces under the 7th National Finance Commission (NFC) Award in the last fiscal year, 2015-16, thus enabling the provincial governments to record surplus budgets.
According to the official documents of the Ministry of Finance, the government had also not slashed the province’s governments’ shares in revenues due to improved tax collection by the Federal Board of Revenue (FBR).
The Federal Board of Revenue, for the first time, had exceeded the revenue collection target of Rs3104 billion by over Rs10 billion in the fiscal year ending on June 2016.
The provincial governments get shares under the NFC Award as per the formula given below:
Punjab 51.74 percent; Sindh 24.55 percent; Khyber Pakhtunkhwa 14.62 percent and Balochistan 9.09 percent.
Punjab, which had received Rs901.5 billion from the Center under the Award, registered the budget surplus of Rs101.2 billion as its expenditures stood at Rs990.3 billion as compared to the revenues of Rs1091.5 billion.
Similarly, Sindh had recorded the budget surplus of Rs50.6 billion. The provincial government’s expenditures remained at Rs590.7 billion as compared to the revenues of Rs641.2 billion.
The Sindh government had received Rs488.7 billion from the federal government. Meanwhile, Khyber Pakhtunkhawa received Rs302 billion.
The provincial government’s expenditures were recorded at Rs359.8 billion as against the revenues of Rs364.3 billion, producing the surplus budget of Rs4.6 billion.
However, it was opposite in the case of Balochistan where the budget deficit of Rs14.7 billion was recorded. Its expenditures remained at Rs211.5 billion compared to the revenues of Rs196.8 billion.
It is worth mentioning here that the provincial governments could not record the estimated budget surplus. The provincial governments had given budget surplus of Rs141.67 billion as against the federal government’s projection of Rs297 billion.
Therefore, the country’s budget deficit stood at Rs1349.3 billion (4.6 percent of the GDP) for the fiscal 2015-16 as against the target of Rs1328 billion (4.3 percent of the GDP).
The expenditures stood at Rs5, 796.302 billion as compared to the revenues of Rs4,446.979 billion.