Provinces generated Rs202 billion budget surplus in 1Q
The provinces generated budget surplus of Rs202 billion in first quarter ( July to September) of the current fiscal year despite the fact that they had not received full share from the federal government under National Finance Commission ( NFC) award.
The four provincial governments had recorded budget surplus of Rs202 billion during July to September period of FY2020, as their expenditures remained at Rs589.1 billion as compared to the revenues of Rs791.1 billion. The government had budgeted provinces to give budget surplus of Rs423 billion during current fiscal year.
The provinces had heavily depended on the funds received from federal govt under divisible pool. Four provinces had received Rs612.5 billion from the federal government as against their projected share of Rs813.63 billion. The centre had transferred less than Rs201.2 billion to the provincial governments under the NFC award during first quarter ( July to September) of the current fiscal year. Under the 7th NFC award, the federal govt is bound to transfer 57.5 percent of the resources to the four provinces. The provincial govts get shares from the federal government under NFC award as per the said formula. Punjab gets 51.74 percent, Sindh 24.55 percent, KhyberPakhtunkhwa 14.62pc and Balochistan 9.09 percent.
PUNJAB
Punjab province had recorded budget surplus of Rs75.39 billion during July- September period of the ongoing fiscal year. The expenditures registered at Rs290.38 billion as compared to the revenues of Rs365.77 billion. However, the major chunk of the revenues came from the federal government under divisible pool. The Punjab government had received Rs293.51 billion from the federal government during first quarter of the current fiscal year. Meanwhile, the province had generated only Rs52.09 billion from its own sources.
SINDH
The province had shown budget surplus of Rs35.53 billion in three months period, as it expenditures recorded at Rs163.04 billion compared to the revenues of Rs198.6 billion. Sindh government has received Rs145.02 billion from the federal government during July to September period of the year 2019- 20. The Sindh government collected Rs43.75 billion during first quarter of the year 201920.
KHYBER- PAKHTUNKHWA
The KP's budget surplus had recorded at Rs53.74 billion. Expenditures of this province had registered at Rs87.08 billion as compared to the revenues of Rs140.82 billion. The KPK's tax collection had recorded at Rs5.5 billion in first quarter of the last year. The province has received Rs97.07 billion from the federal government under NFC during first three months of the current fiscal year.
BALOCHISTAN
This province had also recorded budget surplus of Rs37.34 billion. Balochistan expenditures had remained at Rs48.58 billion as compared to the revenues of Rs85.92 billion. Balochistan's tax collection had recorded at Rs3.18 billion. The province has received Rs76.92 billion in first three months from the federal government.