ISLAMABAD

As per commitment with provinces at the forum of Council of Common Interest (CCI), federal government is providing Rs 2.57 billion to the four provinces for the cash surpluses maintained with SBP by the provinces during the first quarter of current financial year 2014-15

The meeting of NFC (National Finance Commission) was convened here on Monday to monitor the implementation for 2nd bi-annual period (January-June 2014) of Financial Year 2013-14. Finance Minister, Senator Mohammad Ishaq Dar chaired the meeting. Finance Minister announced that as per commitment of the Federal Government with provinces at the forum of CCI, Federal Government is providing Rs.999.922 million to Punjab, Rs.18.021 million to Sindh, Rs.1,015.976 million to KP and Rs.533.725 million to Balochistan for the cash surpluses maintained with SBP by the provinces during the first quarter of current financial year 2014-15.

The draft report was presented before participants of the meeting including provincial Finance Ministers, finance secretaries, respective provincial members and other senior officials. During the discussion after presentation of the report, meeting reiterated the need to broaden the tax base to increase the overall collection and also increase the tax to GDP ratio.

All the members after detailed deliberations unanimously approved the report for presentation to the Parliament & Provincial Assemblies.

According to the report, during the FY 2013-14, FBR reported a collection of Rs 2254.5 billion. The meeting was informed that out of this amount the shares given to the provinces are: Punjab (Rs. 637 billion), Sindh (Rs. 302 billion), KP (Rs. 202 billion) and Balochistan (Rs.123 billion). In addition to this, the shares on account of royalties and grants provided to provinces are: Punjab (Rs 8.8 billion), Sindh (Rs 82.6 billion), KP (Rs 29.97 billion) and Balochistan (Rs 14.9 billion).

The meeting also had detailed deliberations on the reporting mechanism of the FBR. The Minister remarked that members were welcomed to put forth suggestions and comments for modification in the system. There could be further discussion in this regard in future, he said.