As a marathon informal NFC meeting in Finance Ministry on Saturday failed, Prime Minister Zafarullah Khan Jamali will preside over the NFC meeting on Sunday to resolve the contentious issues.
The provinces want increase in their share to 50 percent of divisible pool resources to ensure smooth implementation of the devolution plan and to reduce poverty while the Centre is agreeable to 47 percent because the Saudi oil facility is no more available.
At Sunday's NFC meeting the provinces would reiterate their demand of 50 percent to the Prime Minister.
Provinces maintain that if all other heads are included in the existing formula of 37.5 percent share, their share comes to 44.5 percent, and an addition of 2.5 percent making it 47 percent hardly makes any difference.
In actual terms, an addition of Rs 13 billion would come to Rs 86 per capita. This would neither ensure smooth implementation of devolution plan, nor help reduce poverty.
Sources said that finance ministry has stuck to its offer of 47 percent because Saudi Oil Facility is no more available. "This was giving the government almost Rs 35 billion and Rs 15 billion respectively in last two years".
Moreover, the upcoming induction of fighter jets in PAF would enhance defence spending. This is forcing the government to tighten its belt."
Sources said after intervention by Prime Minister provinces are expected to agree to about 47 to 48 percent offer, under which the provinces would get minimum of 20 percent higher than last formula.
"The informal meeting of the NFC again failed to produce any positive result and the meeting was informed by the Shaukat Aziz that Sunday's formal meeting would be chaired by the prime minister, This shows that federal government is keen to sort out the Sixth NFC issue" sources told Business Recorder.
They said that the meeting on Sunday would be result-oriented otherwise the federal government would move on with its plan of presenting the federal budget 2004-05 without Sixth NFC Award and carry on the existing NFC with a presidential ordinance.
"The province of Punjab in Saturday's meeting was asked to do away with its die-hard stand of population as the base for sharing of resources, but the Punjab finance minister said that he does not have mandate to be flexible. He said he will consult his chief minister and other officials on the issue," sources said.
It was also decided that before meeting the prime minister the provincial finance ministers would contact their chief ministers to check that how far they can go.
Ehsan Shah, finance minister of Balochistan said that the issue of Gas Development Surcharge (GDS) would be again discussed with Sindh. "We hope that instead of 100 percent of GDS to be taken by Balochistan it would settle for 68 percent and leave rest for Sindh.
To a question about Center's offer of 47 percent, he said we might agree for this but big provinces should show some flexibility for sharing of resources amongst provinces.
Sirajul Haq, NWFP finance minister said that lack of resources is a big issue for both Balochistan and NWFP since their problems are more. "We are faced with an uphill task of finalising the provincial Budget with scarce resources, but I am hopeful, that Center would enhance its offer since Prime Minister has a big heart," he said.