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Discrepancies in Fiscal Architecture: Context and Causes of Devolution Reforms’ Outcomes in Khyber Pakhtunkhwa, Pakistan

Author

Listed:
  • Aamer Taj

    (Institute of Management Sciences, Peshawar)

  • Fahad Abdullah

    (Institute of Management Sciences, Peshawar)

Abstract

Based on qualitative empirical evidence from four diverse districts of Khyber Pakhtunkhwa province, this case study examines the limitations in fiscal policy of local governance reforms in Pakistan. Keeping in view the constrained redistributive system that is rooted in the governance setup at provincial and local level, fiscal architecture is analysed. The impact of abolishment of rural urban administrative divide on tax redistribution, complications in revenue generation, matters related with jurisdictional transgression in revenue collection and development expenditure, and inadequate amount of public funds for development are analysed as key factors that are presumably responsible for the defective fiscal management.

Suggested Citation

  • Aamer Taj & Fahad Abdullah, 2017. "Discrepancies in Fiscal Architecture: Context and Causes of Devolution Reforms’ Outcomes in Khyber Pakhtunkhwa, Pakistan," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 9(2), pages 203-224, June.
    • Handle: RePEc:bec:imsber:v:9:y:2017:i:2:p:203-224
    DOI: dx.doi.org/10.22547/BER/9.2.9
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    File URL: http://imsciences.edu.pk/files/journals/2017-vol-2/New%209.pdf
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    References listed on IDEAS

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    1. Cheema, Ali & Khwaja, Asim Ijaz & Qadir, Adnan, 2005. "Decentralization in Pakistan: Context, Content and Causes," Working Paper Series rwp05-034, Harvard University, John F. Kennedy School of Government.
    2. Tahseen Ajaz & Eatzaz Ahmad, 2010. "The Effect of Corruption and Governance on Tax Revenues," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 49(4), pages 405-417.
    3. International Monetary Fund, 2001. "Fiscal Decentralization and Governance: A Cross-Country Analysis," IMF Working Papers 2001/071, International Monetary Fund.
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