ISLAMABAD, Sept 2: The centre transferred Rs457 billion to the provinces in 2007-08 as their share from net proceeds of the federal divisible pool but this was Rs8.5 billion less than the budgetary allocation of Rs466 billion.

The final consolidated accounts released by the finance ministry, however, suggest that the provinces’ share in the net proceeds of the federal divisible pool was about 14.25 per cent higher than Rs400 billion paid to the provinces in 2006-07.

Punjab received Rs228 billion, which is Rs8.24 billion less than the budgetary target of Rs236.24 billion, but about 19 per cent more than Rs191.5 billion in 2006-07.

Sindh received Rs143 billion, about Rs1.2 billion less than the budgetary estimate of Rs144.2 billion, but 8.9 per cent more than Rs131.3 billion it got in 2006-07.

However, the NWFP got about Rs56.5 billion against the budgetary target of Rs55.9 billion, or 23 per cent more than Rs46 billion it had received in 2006-07.

Balochistan was paid Rs30 billion against its budgetary allocation of Rs29.6 billion. When compared with 2006-07, its share declined by about Rs1.2 billion or 3.8 per cent.

The federal government has estimated Rs568.3 billion as provincial share in the federal divisible pool, up by about Rs111 billion or about 24 per cent higher than last fiscal year’s final payouts of Rs457 billion. The fiscal transfers to the provinces include grants and loans from the federal government.

The net proceeds of the divisible pool are arrived at by deducting five per cent collection charges by the federal government. The federal share in the net proceeds of the divisible pool for 2008-09 is 56.25 per cent, with the remainder 43.75 per cent going to the provinces. Likewise, the royalty on crude oil and development surcharge on natural gas, after a deduction of two per cent collection charge, is transferred to the provinces on the basis of well-head production.

The provinces are entitled to one-sixth of sales tax revenue, which is subsequently transferred by the provinces to district governments and cantonment boards.