ISLAMABAD: The federal government has proposed providing record Rs8,205 billion to provinces from the federal divisible tax pool under the National Finance Commission (NFC) Award.
The allocation for provinces has been increased by Rs1,208 billion in proposed federal budget for fiscal year 2025-26 compared to the outgoing 2024-25.
Punjab’s share has been fixed at Rs4,076 billion, Rs 641 billion higher than the previous year. Sindh will receive Rs2,043 billion, reflecting an increase of Rs 291 billion.
Khyber Pakhtunkhwa would receive Rs 1,342 billion, with an increase of Rs 207 billion, while Balochistan will receive more than Rs743 billion, including an additional Rs70 billion over the current year.
Funds received under the NFC Award play a vital role in provincial governments’ development projects and the provision of public services such as healthcare, education, and infrastructure.
According to economic experts, the additional resources allocated to provinces this year will enhance fiscal space and are expected to lead to improved public services at the provincial level.
