FinMin Aurangzeb assures to address KP's concerns over NFC

• Aurangzeb, KP adviser Muzzamil Aslam discuss economic issues.
• Finance czar praises KP over Agricultural Income Tax, NFP.
• KP CM's adviser expresses concerns over withholding of funds.
  

PESHAWAR: Federal Minister for Finance Muhammad Aurangzeb has assured Khyber Pakhtunkhwa that the Centre would duly address the province's concerns regarding the National Finance Commission (NFC) Award, The News reported on Thursday.

The federal government's reassurance came during Aurangzeb's meeting with the Adviser to KP Chief Minister on Finance Muzzamil Aslam with the two discussing key economic issues.

During the meeting, the federal minister commended Khyber Pakhtunkhwa on its efforts to implement the National Fiscal Pact and Agricultural Income Tax.

Aslam expressed concerns about the federal government’s decision to withhold funds allocated for the merged districts under the Annual Development Programme (ADP) and Accelerated Implementation Programme (AIP).

He said that the merged districts required immediate financial support to meet their expenses, which exceeded their allocated budget.

The provincial adviser further proposed that interim arrangements should be made through the NFC to support the merged districts.

He also stressed the need for provinces to be taken into confidence on tax collection, pension and salary matters before the next budget.

The development comes days after the KP CM Ali Amin Gandapur-led government warned of approaching the Supreme Court if the Centre fails to convene the NFC by April 2025.

The provincial government further termed the existing NFC ultra vires to the Constitution.

Meanwhile, CM Gandapur — while speaking at a policy dialogue on the NFC Award — called for the NFC Award to be updated to reflect the post-merger scenario of erstwhile Federally Administered Tribal Areas (Fata).

The provincial chief executive has complained of the federal government's failure to provide the due share in the operational and salaries expenditure to be given to the law enforcement forces working in ex-Fata.

He was of the view that the KP’s share in the federal divisible pool (FDP) had gone up, as the population of the province had gone up by 5.7 million (3% surge) and its land area expanded by 22,000 square kilometres (3.8%) after the merger.

"Our share in the NFC Award should have gone up from 14% to 19.6%, yet the province has not received its due share,” he added. Out of the total commitment for provision of Rs100 billion for accelerated development in merged districts, Gandapur said the Centre must have provided Rs600 billion in the last six years but only Rs132 billion was released.

In addition, the province receives only Rs66 billion annually instead of the committed Rs88 billion for operational expenses in these districts.