IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

Budgetary Consequences of the 7th NFC Award

  • Hafiz A. Pasha

    (School of Social Sciences Beaconhouse National University, Lahore.)

  • Aisha G. Pasha

    (School of Social Sciences Beaconhouse National University, Lahore.)

  • Muhammad Imran

    (School of Social Sciences Beaconhouse National University, Lahore.)

The paper analyses the impact of the 7th NFC Award on the size of the consolidated fiscal deficit of the federal and provincial Pakistan governments in 2010-11, the first year of implementation of the Award. A behavioural asymmetry is observed, whereby the federal current expenditure is inflexible downwards in the face of a decline in resources while provincial current expenditures show a big and rapid response to larger transfers. This asymmetry is the basic cause of any increase in the fiscal deficit, although this is partially mitigated by enhanced fiscal effort by the federal government and some lag in the rise in development spending by the provinces. Overall, it is estimated that the consolidated fiscal deficit will be higher by about 0.3 percent of the GDP due to the behavioural responses associated with the Award. The paper proposes an incentive scheme to reduce the negative effects arising from an Award.

If you experience problems downloading a file, check if you have the proper application to view it first. 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:
Download Restriction: no

Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

Volume (Year): 49 (2010)
Issue (Month): 4 ()
Pages: 375–385

in new window

Handle: RePEc:pid:journl:v:49:y:2010:i:4:p:375-385
Contact details of provider: Postal: P.O.Box 1091, Islamabad-44000
Phone: (92)(51)9248051
Fax: (92)(51)9248065
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:pid:journl:v:49:y:2010:i:4:p:375-385. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Khurram Iqbal)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.