960413

NFC terms of reference

catastrophic for

Balochistan: Magsi

LAILA A ALI

QUETTA: Fiscal transfers from the Federation are of vital importance to the provinces in providing the resources for basic social and economic services to the people.

This was stated by Balochistan Chief Minister Nawab Zulfiqar Ali Magsi while inaugurating that two-day meeting of the sub-committee of National Finance Commission here on Saturday.

He said that he was grateful to President Farooq Ahmad Leghari for fulfilling his constitutional obligation by convening NFC meetings.

Welcoming the constitution of NFC, Magsi said the terms of reference specified for the NFC meetings had brought disappointment for Balochistan.

He said that excise duty on tobacco manufacturers and sugar which were included in the divisible pool of 1990 NFC award had been excluded this time from the pool. And surprisingly, "it is proposed to examine the question of continuation of payment of surcharge on natural gas and royalties on crude oil collected by the federal government for the provincial governments".

Magsi said, straight transfers on account of surcharge, excise duty and royalty on gas represented the lifeline of finances for Balochistan.

He said that the development surcharge on gas alone accounted for 35 percent of the total revenue receipts of Balochistan. Along with the withdrawal of excise duty on tobacco, sugar and gas surcharge, the Chief Minister said the terms of reference implied a catastrophic fall in the flow of revenues to Balochistan of over Rs 530 crore.

He said that an underdeveloped province like Balochistan would plunge into deprivation and despair if the present NFC award did not cater for this eventuality.

Magsi said that the terms of reference "are equally harsh for other provincial governments." He pointed out that Balochistan revenues would decline by 41 percent as compared to 21 percent in case of Sindh, 13 percent in case of Punjab and 8 percent in case of NWFP.

In order to address these issues collectively, Magsi said, "it should be our endeavour to impress upon the federal government, through the forum of the current NFC, to ensure larger transfer to the provincial governments on the pattern of last NFC award. It will be only through increased fiscal transfers that the elected governments in the provinces will ensure socio-economic uplift of the people of the provinces."