The Ministry of Finance strongly refuted the impression created by statements made by representatives of Government of Sindh about there being a delay in transfer of resources from the Federal Government to the Provinces.
According to a press release, the FBR reports revenue collection to Finance Division twice a month (on 17th and last working day of the month). The shares of the provinces are transferred on the same date as per the NFC formula. No amounts are withheld by Finance Division.
During the first 8 months of the current financial year an amount of Rs.312.2 billion has been provided to Sindh as part of its share in the collected revenue. In addition an amount of Rs.57.5 billion has been provided as arrears for the last year. Overall, the Government of Sindh has received Rs.27.1 billion more during the current financial year (July 2018 – February 2019) compared to the same period of last year. It seems that the claim of shortfall is based on the assumption that revenue collection is evenly spread during the 12 months of the financial year, which is not the case.
Historically during the initial months of the financial year, the collections remain on lower side compared to the later part of the year with the highest collection recorded in June of every financial year.
The Ministry of Finance has clarified that the Federal and Provincial fiscal authorities are aware of this fact and plan their expenditures accordingly.
