War on terror: KP share in divisible pool translated into Rs 21.5 billion: Finance Division

The Finance Division has revealed that Khyber Pakhtunkhawa's one percent share of the divisible pool on account of the war on terror was Rs 21.5 billion for fiscal year 2014-15. Sources said that KP government was disbursed the amount agreed in the seventh National Finance Commission Award. On this account Rs 14.558 billion was released in fiscal year 2010-11 followed by Rs 16.405 billion in 2011-12, and Rs 19.047 billion in 2012-13.
Finance Ministry provided this information to the Senate Standing Committee on Finance in a brief. The meeting was informed that in pursuance of Article 160 (1) of the Constitution, the 9th NFC was constituted on 24th April, 2015 which consists of Federal Finance Minister, Provincial Finance Ministers, and non-statutory members from all the provinces. Khyber Pakhtunkhawa has equal representation in the 9th NEC and has sufficient opportunity to present/plead its case for additional funds for the province. It is the mandate of the Commission to consider and make recommendations for approval of the President. The meeting was further informed that in the 7th NFC Award, the share of the provinces in the divisible pool taxes increased from 50 percent to 57.5 percent and for the first time in history, multiple indicators have been adopted for distribution of provincial share in the divisible pool instead of population. Main indicators and their weights are: (i) population 82 percent; (ii) poverty/backwardness10.3 per cent; and (iii) Revenue collection/generation 5 percent and inverse population density 2.7 per cent.
Based on the above mentioned criterion, percentage share of KP was enhanced from 13.82 percent to 14.62 percent. Besides its regular share, government has received an additional 1 percent of net divisible pool on account of war on terror during the currency of 7th NFC Award.
Provincial government received Rs 1118. 877 billion from divisible pool taxes (excluding war on terror) in fiscal year 2010-11, which in the subsequent fiscal year 2011-12 increased to Rs 136.585 billion, and Rs 158.520 billion in 2012-13. In 2013-14 Rs 180.013 billion was disbursed under this head. The provincial government received Rs 179.195 billion till May 31, 2014-15. The provincial government received straight transfers of Rs 24.491 billion in 2010-11, Rs 25.913 billion in 2011-12, Rs 22. 041 billion in 2012-13, Rs 32.760 billion in 2013-14 and up to Rs 22.164 billion in 2014-15 till 31.5.2015.