Tarin Reveals Agreed NFC Formula
December 11, 2009 by Trend PK
Filed under Breaking News
LAHORE, Pakistan News: The government formally announced the National Finance Commission (NFC) Award after long-drawn-out negotiations that continued for three days.
Addressing a news conference here, Federal Finance Minister Shaukat Tarin revealed the draft for inter-provincial sharing of funds on while chief ministers of all the four provinces have agreed upon.
Tarin said the 56 pc would be distributed among the provinces from divisible pool. He said the federation would now enhance its resources besides slashing expenses.
He said 82 pc distribution of the resources would be done on the basis of population.
Tarin said Sindh would get 6 billion rupees from the share of federal government, adding that Balochistan would get 9 pc of the share and that it would get 83 billion rupees in the wake of special needs.
It has been agreed that provinces would collect the tax from now, he said. “Services of tax is a provincial matter and the provinces would decide it now their self.”
Earlier, Chief Minster Punjab Mian Shahbaz Sharif on the occasion said that the four provinces had agreed over the news formula, adding that “After restoration of the judiciary in Pakistan, it is second gift for the nation.”
For the past two decades distribution of national resources had been carried out under a single point population based formula. The new award, however, will employ multiple criteria, including inverse population density and poverty.
The 7th NFC Award meeting came to an end that continued for three days under the chairmanship of Shaukat Tarin.
On Thursday, the provinces failed to firm up the formula for inter-provincial (horizontal) distribution of funds from the federal divisible pool even after long-drawn-out negotiations that continued till late in the night on the second day of the NFC meeting.
The differences between Punjab and Sindh on revenue were blamed for the delay in the finalisation of the formula.
Reportedly, the intervention of the chief ministers, especially of Punjab and Sindh, had helped negotiators make significant progress and prevent a deadlock between the federating units.
Tarin Reveals Agreed NFC Formula was first posted on December 11, 2009 at 9:43 pm.
