Ministry of Finance has said that the development spending during the first four months witnessed a growth of 27% compared to the same period of last financial year while the development spending of the four provinces (combined) during the first four months also stood at Rs.112 billion as compared to Rs.88 billion spent during the same period of last financial year
Islamabad (Pakistan Point News / Online - 16th December, 2019) Ministry of Finance has said that the development spending during the first four months witnessed a growth of 27% compared to the same period of last financial year while the development spending of the four provinces (combined) during the first four months also stood at Rs.112 billion as compared to Rs.88 billion spent during the same period of last financial year."It is incorrect to say that the provincial government has provided the surpluses at the cost of development activities," said the Finance Division in an official statement in response to certain media reports appearing in a section of the press claiming that the "provinces forego uplift plans and return Rs.
202 billion to Centre"In a statement, the spokesperson of Ministry of Finance said that the reports carried by some part of the media as misleading and incorrect and maintained that as per the factual position, neither the provincial surplus is Rs.202 billion nor the surplus amount had been transferred to the federal government. The actual provincial surplus for the period July-September, 2019 is Rs.190 billion, it added.He said that according to standard procedure federal transfers are made to the provincial governments as per NFC formula and are transferred from federal government account to the respective provincial government account maintained with State Bank.
The amount so transferred remains available to the respective provincial government all the time in their separate accounts with SBP.The statement clarified that the ministry compiles and consolidates fiscal operations of the country including federal government and all the four provincial governments on quarterly basis. The cash balance position of federal government and provinces is shown in a consolidated manner. The consolidated cash surplus position helps in neither driving the fiscal policy of the government as federation has neither a role in provincial expenditure planning nor its spending. Provincial surplus for the same period of last financial year was Rs.199 billion.
