Saturday, January 17, 2015

Finance Ministry releases Rs 1.706 billion to provinces for federal-funded projects

by: `M Arshad  January 17, 2015

ISLAMABAD: The Finance Ministry has released Rs 1.706 billion to provinces out of total allocation of Rs 9.43 billion made in the Public Sector Development Programme (PSDP) for financial year 2014-15 for 41 projects funded by the federal government in the provinces.

Sindh is the biggest recipient so far as the ministry has released Rs 1.024 billion to Sindh out of an allocation of Rs 2.474 billion for 15 projects costing Rs 51.011 billion.

“Releases are made on the authorisation of the Planning Development and Reforms Division,” a source in the ministry told Customs Today. He said that Rs 1.706 billion had been released to the provinces so far for continuing development work on specified projects in the PSDP.

He said that Rs 0.060 billion had been released to Punjab for 2 projects out of Rs 2.150 billion while cost of projects was Rs 5.138 billion.

“Rs 0.086 billon has been released to Khyber Pakhtunkhwa out of total Rs 0.468 billion for 5 projects worth Rs 4.233 billion,” the source observed, adding that Rs 0.536 billion were released to Balochistan out of Rs 4.338 billion for 19 projects costing Rs 62.803 billion.

As per National Finance Commission (NFC) Award, he said, the Federal Board of Revenue (FBR) and the Petroleum Ministry reported to the Finance Division about the volume of revenue collection for divisible pool, taxes and straight transfer fortnightly, on 17th as well as on the last working day of each month.

“The provincial share in the divisible pool, taxes and straight transfers are worked out on the same day as provided in the NFC Award/ constitutional provisions and disbursed to provinces through tax advices, addressed to the State Bank of Pakistan (SBP),” the source observed.

The source said Rs 728.823 billion had been distributed among the provinces from divisible pool, taxes and straight transfers by December 31, 2014.

“Out of Rs 728.823 billion, Punjab received Rs 335.990 billion, Sindh Rs 193.942 billion, KP Rs 118.926 billion while Rs 79.965 billion were transferred to Balochistan,” the source added.

Out of Rs 664.331 billion divisible pool, Punjab got Rs 331.503 billion, Sindh Rs 157.294 billion, KP Rs 104.927 billion and Balochistan got Rs 70.606 billion.

“Similarly, out of Rs 58.899 billion straight transfers, Punjab got Rs 4.487 billion, Sindh 32.419 billion, KP Rs 13.999 billion and Balochistan Rs 7.994 billion,” he said.

Moreover, the source said that three provinces except Punjab also received funds from other heads. “Rs 0.488 billion collected out of general sales tax (GST) on services was paid to Balochistan, Sindh got Rs 4.229 billion collected out of grants to offset losses on abolition of Octroi and Zila Tax (OZT) and Rs 0.877 billion collected from payment of biannual FY 2012-13 was paid to Balochistan,” the source observed.

The source said that appointment of government adjuster had been provided in General Financial Rules (GFR) for making payments and receipt adjustments between the federal and provincial governments and its entities.

“Finance Division makes at-source adjustment of dues payable by provincial governments to federal government of its entities, in case government adjuster passes orders for the same,” the source observed adding that presently additional finance secretary (budget) was performing the duties of government adjuster.

http://customstoday.com.pk/finance-ministry-releases-rs-1-706-billion-to-provinces-for-federal-funded-projects/


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