PESHAWAR: The federal government has deducted Rs154.164 billion from Khyber Pakhtunkhwa’s (KP) share in the National Finance Commission (NFC) Award for the financial year 2019-20.
KP is already is facing severe financial problems due to federal cuts and non-payment of its NFC Award and the net hydel profit.
The federal government had to pay 1 per cent distributable revenue in the fiscal year 2019-20 under the NFC Award to the provinces and in the fight against terrorism. Therefore, the KP government was to be given Rs533.26 billion, but due to low federal revenue, Rs379.97 billion were paid to the province, which is Rs 154.164 billion less than the allocated amount.
The federal government has now promised to give Rs477.51 billion to KP in the next financial year 2020-2021, which is 10 per cent less than the financial year 2019-20. The Centre is likely to provide Rs55.74 billion less to KP next year.
According to the budget documents for the next financial year, the federal government had allocated Rs1,611.364 million in the NFC for the financial year 2019-20, of which Rs1,135.447 billion had been provided to Punjab, Sindh had been provided Rs592.321 billion out of its share of Rs814.916 billion, Balochistan was paid Rs295.214 billion and KP was provided Rs379.097 billion out of its share of Rs533.261 billion.
For the next fiscal year, the Centre has proposed Rs1,439.116 billion for Punjab, Rs742.030 billion for Sindh, Rs477.519 billion for KP and Rs265.054 billion for Balochistan in the NFC Award.
