Updated on
Summary
The session of National Finance Commission (NFC) is underway in Islamabad under the chairmanship of Finance Minister Shaukat Tareen. The Ministry of Finance is briefing the provinces about the total income of the federation. The provinces had demanded yesterday a briefing on the total income of the federation. According to the budget documents the total income of the federation is Rs 2,700 billion while the tax target is Rs 1,380 billion. Forty five percent of this target (Rs 655 billion) will be distributed among the provinces while the federation will contain Rs 513 billion of the non-tax revenue. It also includes Rs 150 billion profit of the State Bank and Rs 113 billion of petroleum levy. The defense profit is Rs 128 billion. The session will also devise a formula to divide resources among the provinces. Under the current formula, 45 percent of the revenue goes to the federation while 55 percent is reserved for the provinces. The sub-committees to look into various technical issues will also be formed in todays session.
