In this way the shares of the provinces would be increased to 50 percent over time, sources told Business Recorder.
Prime Minister, who chaired a meeting before leaving for Umrah, almost made two provinces Punjab and Balochistan agreed on 47.4 percent, while Sindh was reluctant due to distribution of extra 6 percent in addition to 94 percent on population basis and NWFP remained stick to 50 percent demand.
All the chief ministers and finance ministers were present in the meeting.
Premier later announced in a public gathering at Bari Imam's Urs that an agreement has been reached, without giving details.
Jamali also assured the small provinces to fund their needs for development spending. All the finance ministers exhibited visible disagreement among themselves while talking to press.
However, they were still in federal capital and could see Finance Minister Shaukat Aziz separately.
The Sindh officials were looking really very annoyed, while talking to reporters. They spoke to press separately.
NWFP and Balochistan Finance Ministers Sirajul-Haq and Syed Ehsan Shah also appealed to President Musharraf to finally resolve the issue.
The two provinces also agreed to sit and discuss further details with Finance Minister Shaukat Aziz, who was tight-lipped after the meeting.
A key disagreement arose on the 6 percent other revenue in addition to population based 94 percent.
The three provinces almost agreed that 6 percent of the provincial share should be distributed on factors like backwardness, inverse population density (IPD namely area) and spending on education and health.
However, the Sindh wanted that revenue collection should also be included in it.
The meeting found out that no data of revenue generation is available with any authority, while only revenue collection data is available which benefits only Sindh.
However, it remained to be not a big bone of contention, as 94+6 percent formula could be agreed.
On the GST issue, the Sindh government is demanding that Octroi and Zila tax of 1998 ratio should be included as 62.5 percent and 37.5 percent as population.
But the other provinces demanded that it should be according to backwardness (34 percent) and IPD.
According to estimates 2.5 percent GST makes Rs 40 billion. Sindh can lose Rs 7-8 billion if Octroi is not considered in 6 percent share.
Sindh officials said that according to its calculation the federal government from this GST can only retain service charges of collection, while it is cutting 5percent, which makes around Rs 22 billion. While services charges only make below one percent.
On the gas development surcharge, the Balochistan government is saying that the rate of their gas is Rs 33 per thousand cubic feet, while average national rate is Rs 126-130 per thousand cubic feet, which reduces its share. It is now getting Rs 6 billion, while it deserves around Rs 14 billion.
Sindh offered Rs 2 billion finally after raising its previous offer of Rs 1.5 billion in last two days. Sindh says Balochistan is raising its demand after once reaching at consensus.
Sindh was of the view that its Marri Gas fields are offering subsidy on all fertiliser units, which sells its product in all province's and Sindh loses its revenue in it.
Sindh also objected on overall role of centre as making it chief of everything in NFC, which is not in the Constitution but became a practice. It said that NFC is an autonomous body and it has no Chairman and it decides shares amicably and does not take shares form centre and give to provinces.
Balochistan's FM, Syed Ehsan Shah said that he could not make budget on the basis of previous award as overdraft from State Bank stands at Rs 4 billion and it would rise to Rs 6 billion by June 30, 2004.
Its deficit would reach nearly Rs 10 billion, which is too high for the Rs 25-30 billion budget.
Finance Ministry has also told the meeting that it can not increase from 47.4 percent as its civil administration expenditures have risen too much.