The federal government has transferred close to 35 billion Br in revenues collected from taxes to regional administrations. The amount was determined by an income distribution formula set out for the budget year ended earlier this month. Prior to an amendment to the distribution formula, the federal government allocated not more than 4.1 billion Br in taxes to regional administrations. Parliament has approved a 786.6 billion Br federal budget bill for this year. Close to 45pc of the budget has been apportioned to recurrent expenditures. A little less than 236 billion Br (30pc of the budget) has been set aside for capital expenditures. Less than 200 billion Br has been apportioned to cover regional states' subsidies and pay for development projects.
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