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Fiscal Federalism in Pakistan: The 7th National Finance Commission Awardand Its Implications

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  • Usman Mustafa

    (Pakistan Institute of Development Economics, Islamabad.)

Abstract

Pakistan is a federal country. Distribution of resources has a profound impact on income, development, backwardness, and poverty. The paper briefly discusses the federation, its needs and importance in general. The National Finance Commission (NFC) award is considered as a step towards federalism. In the historical perspective of the NFC awards, the salient features of the recent 7th NFC award, the weightings, and the criteria adopted in the n ational as well as provincial Finance Commission award s are described. Major issues faced by the Provincial as well as Federal governments regarding the award and its implementation are discussed in detail. Good practice lessons to be derived from it are also pointed out. The conclusion includes recommendations for a strong federation and effective use of the NFC award.

Suggested Citation

  • Usman Mustafa, 2011. "Fiscal Federalism in Pakistan: The 7th National Finance Commission Awardand Its Implications," PIDE-Working Papers 2011:73, Pakistan Institute of Development Economics.
    • Handle: RePEc:pid:wpaper:2011:73
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    References listed on IDEAS

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    Cited by:

    1. Muhammad Atif & Dr. Naila Nazir, 2023. "Impact of Fiscal Decentralization on Services Tax Collection in Khyber Pakhtunkhwa," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 9(2), pages 701-708.
    2. Fahim Nawaz & Kalsoom Inam & Shagufta Shaheen, 2017. "Local Governments and the Provision of Health and Education within Khyber Pakhtunkhwa: An assessment," Global Social Sciences Review, Humanity Only, vol. 2(1), pages 91-104, June.
    3. Manzoor Ahmed, 2023. "Political Economy of Elite Capture and Clientelism in Public Resource Distribution: Theory and Evidence from Balochistan, Pakistan," India Quarterly: A Journal of International Affairs, , vol. 79(2), pages 223-243, June.
    4. Brosio, Giorgio, 2014. "Decentralization and Public Service Delivery in Asia," ADB Economics Working Paper Series 389, Asian Development Bank.
    5. Qasim Raza & Hafsa Hina, 2016. "Fiscal Decentralisation, Provincial Economic Growth and Spillover Effects: A Spatial Panel Data Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 55(4), pages 743-760.
    6. Manzoor Ahmed & Abdul Qayyum, 2023. "Decentralisation’s Effects on Health: Theory and Evidence from Balochistan, Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 62(3), pages 331-356.

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    More about this item

    Keywords

    Fiscal Federalism; NFC Award; Impact and Implications; Political Economy; Rule and Discretion; Pakistan;
    All these keywords.

    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

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