The federal government allotted Rs. 21.970 trillion to four provinces under the National Finance Commission (NFC) Award and other grants and loans during the last decade, according to the Ministry of Finance.
ProPakistani compiled a report based on records from the ministry, which detailed that the government had transferred Rs. 20.433 trillion to the provinces through the NFC Award and Rs. 1,537 billion through loans and grants during the last ten years. It provided the provinces with their share of the total tax income of the fiscal year under the NFC Award.
The federal government had enhanced the provincial share in the divisible pool by decreasing its share as per the eighteenth amendment to the Constitution of Pakistan.
Some critics say that the federal government had increased the provinces’ shares without assigning them more responsibilities, which allowed them to enjoy surplus money. The government has been striving for liquidity to meet the expenditures of debt servicing, defense expenditures, running civil government affairs, and other spending.
|Fiscal Year||Total Transfers||Punjab||Sindh||KP||Balochistan|
|(NFC + Grants)||(NFC + Grants)||(NFC + Grants)||(NFC + Grants)||(NFC + Grants)||(NFC + Grants)|
According to the report, the provinces got the following amounts from the divisible pool through the NFC during the last ten years: Punjab — Rs. 9,833 billion, Sindh — Rs. 5,225 billion, Khyber Pakhtunkhwa (KP) — Rs. 3,330 billion, and Balochistan — Rs. 2,040 billion.
The government also allotted loans and grants as follows: Punjab — Rs. 339 billion, Sindh — Rs. 327 billion, KP — Rs. 679, and Balochistan — Rs. 206 billion.
The Ministry of Finance transferred Rs. 2,584 billion to the provincial governments through the NFC Award, and Rs. 279 billion through loans and grants during the first nine months of the current fiscal year. The provinces were provided the following amounts through the NFC and loans and grants during the period: Punjab — Rs. 1,274 billion and Rs. 56 billion, Sindh — Rs. 646 and Rs. 45 billion, KP — Rs. 425 billion and Rs. 160 billion, and Balochistan — Rs. 238 billion and Rs. 18 billion.
The federal government also transferred Rs. 2,742 billion and Rs. 327 billion via the NFC Award and loans and grants during FY 2020-21. Accordingly, Punjab received Rs. 1,344 billion and Rs. 35 billion, Sindh — Rs. 688 billion and Rs. 43 billion, KP — Rs. 446 billion and Rs. 208 billion, and Balochistan — Rs. 263 and Rs. 42 billion
The provincial governments received Rs. 2,504 billion and Rs. 221 billion from the federal government via the NFC Award and loans and grants during FY 2019-20. Of these amounts, Punjab received Rs. 1,197 billion and Rs. 17 billion, Sindh — Rs. 614 billion and Rs. 36 billion, KP — Rs. 401 billion and Rs. 138 billion, and Balochistan — Rs. 291 and Rs. 30 billion.
The federation also transferred Rs. 2,398 billion and Rs. 110 billion through the NFC Award and loans and grants during FY 2018-19. Subsequently, Punjab received Rs. 167 billion and Rs. 21 billion, Sindh — Rs. 600 billion and Rs. 33 billion, KP — Rs. 393 billion and Rs. 45 billion, and Balochistan — Rs. 238 billion and Rs.10 billion.
The provincial governments were given Rs. 2,217 billion and Rs. 173 billion by the federal government under the NFC Award and loans and grants during the FY 2017-18. Punjab received Rs. 1,079 billion and Rs. 74 billion accordingly, Sindh — Rs. 562 billion and Rs. 48 billion, KP — Rs. 363 billion and Rs. 36 billion, and Balochistan —Rs. 213 billion and Rs. 15 billion.