Investor Presentaiton

Chapter II - Estimates of Receipts As per NFC Award, the distribution of resources among Provinces is based on multiple criteria iiii including + Population Inverse Population Density Revenue Poverty Since the Divisible Pool transfers constitute a large proportion of General Revenue Receipts, even a small percentage variation between Federal Board of Revenue's Budgeted Estimates and Actual Collection leads to a major re-adjustment in Provincial Receipts. The following table shows the variance between Budget Estimates and Actual Tax Collection by FBR during the last four years: Budget Estimates Actual Collection Excess/Shortfall 2015-2016 2016-17 2017-18 (PKR Billion) 2018-19 3,104 3,621 4,013 4,435 3,113 3,361 3,841 3829 -260 -172 -606 Excess/Shortfall (in Percentage) 0.29% -7.18% -4.29% -13.66% Punjab's Estimated Federal Divisible Pool Receipts PKR 1,601.468 bn B.E. FY 2019-20 -10% PKR 1,432.968 bn B.E. FY 2020-21 The last tranche of the FDP is received around the 28th of June each Financial Year. The common practice is to conduct the settlement and reconciliation exercise for the entire FY as well as the last two to three days of June and transfer the balance amounts to the Provinces in the form of arrears in the first quarter of the next FY. In FY 2019-20, an amount of PKR 62.9 billion of Punjab's FDP share for FY 2018-19 was transferred from the Federal Government to the A/C-I of the Provincial Government as arrears of FDP. PROVINCIAL TAX REVENUE The second component of the General Revenue Receipts is termed as Provincial Tax Revenue. The tax revenue is collected by the following agencies of the Government: Page 8

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