Divisible pool: MoF rejects Sindh government's claim

Finance Ministry has refuted Sindh government's claim that the federal government transferred Rs 90 billion less to the province from divisible pool share during the current fiscal year, saying that the share of the province increased both in absolute and percentage terms by 9.4 percent. Statements one after another came from the chief minister Sindh and his cabinet ministers during the recent weeks with the chief minister stated publicly that the federal government's recoveries had worsened to such an extent that 28% less funds were transferred to the provincial government than its share in the pool.
The chief minister and other ministers have been making public statements on media that the federal government transferred Rs 90 billion less to the province than its share in the divisible pool collection which, according to them, gave credence to their stance that Pakistan Tehreek-e-Insaf government is inexperienced and does not have ability to run the country.
An official said that unending statements from Sindh government have compelled the federal government and Finance Ministry to come up with a clarification with the objective to put the record straight with fact and figures.
Ministry of Finance in a statement "strongly refutes news reports/ statement, which claimed that the federal government has made less transfers to Sindh during the current financial year. It is clarified that during the first half of fiscal year 2017-18, FBR reported a collection of Rs 1,845.3 billion (inclusive of arrears of previous year) while during the same period of current financial year, FBR reported collection of taxes as Rs 2,011.4 billion (inclusive of arrears of previous year). The share transferred to Sindh province during the same period of last financial year was Rs 251.5 billion while during the current financial year share of the province stood at Rs 275.2 billion, reflecting an increase of 9.4 percent.
"It is evident that the transfers in both absolute and percentage terms have increased. It is further clarified that the federal government immediately transfers the share of all the provinces as per the NFC formula, based on the revenue collection reported by the FBR," the statement concluded.
According to budget documents for the current fiscal year presented by the previous government of Abbasi administration, Sindh government's share was estimated at Rs 648.813 billion from divisible pool taxes and straight transfers for the current fiscal year on the premises of Rs 4,435 billion tax collection by the Federal Board of Revenue (FBR).
The FBR tax collection target was revised downward to Rs 4,389 billion in the Supplementary Finance Bill 2018 presented by the Pakistan Tehreek-e-Insaf-led government on September 18, 2018. Sources said as the FBR tax collection target has been revised downward and the share of the provinces from the divisible pool will also decrease.