This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

National Finance Commission Awards in Pakistan: A Historical Perspective

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Iftikhar Ahmed (Pakistan Institute of Development Economics, Islamabad.)
Usman Mustafa (Pakistan Institute of Development Economics, Islamabad.)
Mahmood Khalid (Pakistan Institute of Development Economics, Islamabad.)

Additional information is available for the following registered author(s):

Abstract

This study explores the evolution of fiscal resource distribution in Pakistan. Pakistan is a federation comprising four provinces, federally-administered areas, and the Islamabad Capital Territory. Being a central type of government, most of the revenues are collected by the centre and then redistributed vertically between the federal and the provincial governments, and horizontally among the provinces. Provinces then also redistribute revenues among lower tiers of the government, through a revenue-sharing formula. A thorough look at the history indicates that this process has been complex and has a far-reaching impact. A less systematic approach has been adopted to decentralise the financial matters. Over time, the divisible pool has expanded due to heavy reliance on indirect taxes as well as improvement in the collection. Population is the sole distribution criteria, adopted in all NFC awards from the divisible pool. This has raised friction among the provinces, necessitating inclusion of other potential variables evolved from international best practices. In addition to that, absence of technical experts and permanency of the NFC is another impediment. The NFC is supposed to provide the framework for amicable distribution of resources between the federal and the provincial governments for the joint goal of development and prosperity.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.pide.org.pk/pdf/Working%20Paper/WorkingPaper-33.pdf
File Format: application/pdf
File Function: First Version, 2007
Download Restriction: no

Publisher Info
Paper provided by Pakistan Institute of Development Economics in its series PIDE-Working Papers with number 2007:33.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 22 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:pid:wpaper:2007:33

Contact details of provider:
Postal: Quaid-i-Azam University Campus, P.O.Box 1091, Islamabad-44000
Phone: (92)(51)9206610
Fax: (92)(51)9210886
Email:
Web page: http://www.pide.org.pk
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Irfan Shakeel).

Related research
Keywords: NFC; Pakistan; Fiscal Federalism; Rule and Discretion; Political Economy; Population; Subventions; Doing the Business of Government;

Other versions of this item:

Find related papers by JEL classification:
H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

This paper has been announced in the following NEP Reports:

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
  1. Roy Bahl & Sally Wallace & Musharraf Cyan, 2008. "The Challenge of Intergovernmental Fiscal Relations in Pakistan: The Property Tax Division," International Studies Program Working Paper Series, at AYSPS, GSU paper0825, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
Statistics
Access and download statistics

Did you know? The yearly budget of IDEAS is exactly $0: it relies entirely on volunteer work.

This page was last updated on 2009-11-14.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.