No delay in transfer of resources from centre to provinces, MoF clarifies

0
109
  • ‘During the last eight months, an amount of Rs312.2bn has been provided to Sindh as part of its share in the collected revenue’

ISLAMABAD: The Ministry of Finance (MoF) on Tuesday refuted the impression created by certain statements by Sindh government representatives that there is a delay in the transfer of resources from the federal government to the provinces.

“It needs to be noted that the Federal Board of Revenue (FBR) reports revenue collection to Finance Division twice a month (on 17th and last working day of the month). The shares of the provinces are transferred on the same date as per the NFC formula. No amounts are withheld by Finance Division,” the ministry said in a statement.

During the first eight months of the current financial year, an amount of Rs312.2 billion was provided to Sindh as part of its share in the collected revenue, the statement continued. “In addition, an amount of Rs.57.5 billion was provided as arrears for the last year. Overall, the Sindh government received Rs.27.1 billion more during the current financial year (July 2018 – February 2019) compared to the same period of last year.”

It seems that the claim of shortfall is based on the assumption that revenue collection is evenly spread during the 12 months of the financial year, which is not the case, the ministry clarified, adding that historically, during the initial months of the financial year, collections remain on the lower side compared to the later part of the year with the highest collection recorded in June of every financial year.

“The federal and provincial fiscal authorities are aware of this fact and plan their expenditures accordingly,” the ministry concluded.