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ISLAMABAD: The four provinces received a total of Rs1,895 billion from the federal divisible tax pool during the first quarter (July-September) of the ongoing fiscal year 2026-27 under the National Finance Commission (NFC) Award, according to documents released by the Ministry of Finance.<\/strong><\/p>\n The documents show that Punjab received the largest share of Rs942 billion during the July-September quarter under the NFC Award. The province recorded total revenues of Rs1,117 billion against expenditures of Rs784 billion, posting a surplus of Rs333 billion.<\/p>\n Sindh received Rs479 billion under the NFC Award during the first quarter. Its total revenues stood at Rs690 billion, while expenditures amounted to Rs509 billion, resulting in a surplus of Rs180 billion.<\/p>\n Similarly, Khyber Pakhtunkhwa received Rs314 billion from the federal government under the NFC Award. The province recorded revenues of Rs413 billion and expenditures of Rs311 billion, posting a budget surplus of Rs102 billion.<\/p>\n Balochistan received Rs158 billion during the quarter. However, the province recorded total revenues of Rs175 billion against expenditures of Rs191 billion, resulting in a budget deficit of Rs16 billion.<\/p>\n The distribution of federal tax revenues among the provinces is governed by the National Finance Commission Award, established under President\u2019s Order No. 5 of 2010 and amended in 2015.<\/p>\n Under the existing arrangement, 57.5 per cent of the net proceeds from major federal taxes are transferred to the provinces through the divisible pool, while the federal government retains the remaining 42.5 per cent.<\/p>\n The provincial shares are determined through a formula based on four indicators: population, poverty and backwardness, revenue generation and collection, and inverse population density.<\/p>\nNFC Award Distribution Formula<\/h2>\n