Provincial govts record budget surplus of Rs323.7b in first half

ISLAMABAD                 –               The four provinces jointly provided a massive budget surplus of Rs323.7 billion to the Centre during the first half (July-December) of the ongoing financial year.

The four provincial governments recorded budget surplus of Rs323.7 billion during July to December period of FY2020, as their expenditures remained at Rs1359.7 billion as compared to the revenues of Rs1683.4 billion.

The government had budgeted provinces to give budget surplus of Rs423 billion during current fiscal year.

The provincial governments’ surplus budget showed that they had not utilized their budgets on development activities in the provinces.

The provinces received major portion of their revenues from the federal government under the National Finance Commission (NFC) award.

The provinces helped the Centre in controlling its budget deficit by not utilizing their revenues in six months.

The provinces could use the revenues in development projects, which would help in generating economic activities and employment generation.

According to data of ministry of finance, provincial governments had received Rs1325.8 billion from the federal government under the NFC in July-December period of the year 2019-20.

Meanwhile, four provinces had collected taxes of only Rs214.4 billion making the total revenues of the provinces at Rs1683.4 billion.

On the other hand, provinces had spent Rs1359.7 billion and returned Rs323.7 billion to the federal government to restrict its budget deficit.

Pakistan had committed with the International Monetary Fund (IMF) to restrict budget deficit at 7.5 percent of the GDP during the year 2019-20 with the help of provincial surplus budgets.

Provinces are largely depending on federal government share under the NFC award.

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, Khyber-Pakhtunkhwa 14.62pc and Balochistan 9.09 percent.

Punjab

Punjab province had recorded budget surplus of Rs119.04 billion during July-December period of the ongoing fiscal year.

The expenditures registered at Rs651.6 billion as compared to the revenues of Rs770.7 billion.

However, the major chunk of the revenues came from the federal government under divisible pool.

The Punjab government had received Rs634.4 billion from the federal government during first half of the current fiscal year.

Meanwhile, the province had generated only Rs102.8 billion from its own sources.

Sindh

The province had shown budget surplus of Rs69.2 billion in six months period, as it expenditures recorded at Rs369.7 billion compared to the revenues of Rs438.8 billion.

Sindh government has received Rs327.7 billion from the federal government during July to December period of the year 2019-20.

The Sindh government collected Rs91.4 billion during first half of the year 2019-20.

Khyber-Pakhtunkhwa

The KP’s budget surplus had recorded at Rs76.6 billion. Expenditures of this province had registered at Rs228.2 billion as compared to the revenues of Rs304.7 billion.

The KP’s tax collection had recorded at Rs12.6 billion in first half of the last year.

The province has received Rs214.7 billion from the federal government under NFC during first six months of the current fiscal year.

Balochistan

This province had also recorded budget surplus of Rs58.9 billion.

Balochistan expenditures had remained at Rs110.3 billion as compared to the revenues of Rs169.2 billion.

Balochistan’s tax collection had recorded at Rs7.7 billion.

Article source: https://nation.com.pk/16-Feb-2020/provincial-govts-record-budget-surplus-of-rs323-7b-in-first-half