The Baloch Hal A Baloch Perspective
Editor-In-Chief : Malik Siraj Akbar
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Editorial: A historic NFC Award
The Federal Finance Minister, Mr. Shaukat Tarin, has announced the historic National Finance Commission (NFC) Award in presence of all the four Provincial Chief Ministers on Friday afternoon saying that the multiple criteria had been unanimously agreed. The Punjab Province had conceded to accept share of population by 82 per cent instead of hundred per cent in the past. Balochistan will be the biggest beneficiary getting more than 9 per cent share on population basis ensuring a minimum share of Rs 83 billions this year.
The Finance Minister announced that it would never be reduced even in case of shortfall in federal revenue, the Federal Government and all the three provinces would compensate this figure in economic recession. Earlier, the Federal Government had picked up Federal loans in shape of indiscriminate bank borrowing by the past Q-League Government amounting to Rs 17.5 billion. Similarly, the Government had announced to pay the arrears of Gas Development Surcharge (GDS) in the tune of Rs 120 billion—payment of Rs 10 billion annually for next 12 years to Balochistan. Balochistan had been claiming the Gas Development Surcharge since the gas was discovered and brought in commercial use from 1954 to 1991 when the GDS was made admissible by the NFC.
Similarly poverty had been given due weightage in the new NFC and from this year 10.3 of the revenue from the Divisible Pool had been allocated. The Sindh Government got a share of five percent for its contribution to revenue collection. It had been a long standing demand of the Sindh Province. The inverse population density had been allocated 2.7 per cent share of the Divisible Pool.
The most important decision the Federal Government had announced to earmark 56 per cent share to the province for vertical distribution of resources between the Federation and the Federating Units. However, it is for the first year. The Federal Government will increase it to 57.5 in the next year. The Finance Minister announced that the cumulative effect would be 60 per cent revenue going to the Provinces and the Federation would be retaining merely 40 per cent keeping in view all other factors. He termed it a generosity on the part of the Federal Government to concede the just and legitimate rights of the Provinces as most of the services to the people are being rendered by the Provincial Government. The population is residing in the provinces thus the Provinces got the greater right on the resources, the Federal Finance Minister told newsmen.
He said that the Federal Government had reduced its expenses by more than 14 per cent and thus made more resources available for the provinces. The Federal Finance Minister also announced that the Collection Charges had been reduced from five per cent to mere one per cent. There was a protest from the Balochistan Government that the Federal Government was unfairly charging five per cent on revenue collection charges. On this, the Finance Minister reviewed the laws and procedures and announced a reduction of four per cent in the collection charges. Balochistan Government is receiving bulk of its revenue from the gas companies in shape of cross cheques and the same are reimburse the other day to the Provincial Government with a deduction of five per cent collection charges. The Finance Minister paid tributes to the Punjab Chief Minister for accommodating the viewpoints of other provinces and demonstrated a sense of sacrifice or not demonstrating rigidity on the NFC issue.
Earlier, the Punjab Chief Minister welcomed the Chief Ministers from three provinces and the Federal Finance Minister saying that the consensus on NFC Award was possible merely because there was democracy in Pakistan. The military dictator did not announce the NFC Award for 13 long years. He said that the Punjab Government had offered sacrifices to accept the multiple formulas for distribution of resources among the Provinces and agreed to accept 82 per cent revenue on population basis accommodating poverty, backwardness, revenue collection and inverse population growth.
The Balochistan Chief Minister, Nawab Mohammad Aslam Raisani thanked all the Chief Minister and the Finance Minister for showing magnanimity towards Balochistan increasing its revenue by 102 per cent from the Divisible Pool of resources.
