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as poverty, underdevelopment, and inverse population density criteria, as demanded by Sindh, KPK and Baluchistan. Baluchistan being the largest in area and scattered in population, demanded the criteria of inverse population density to include in the revenue sharing formula. While Punjab wanted population to remain the only criteria because it is in the province’s advantage. Since 1973 constitution, it is for the first time that resources are not distributed among provinces according to the old population standards, but an advancement has been made in the resource sharing criteria.

 

The formulation of multiple criteria for resource distribution is a commendable step and a way further to fiscal autonomy of provinces. It has been measured as a success of democratic system and provincial partners. Economists have measured it groundwork for “Fiscal Federalism” in Pakistan. No disputes came in the way of approval of 7th NFC award. It is marked by sacrifices and compromises by all the stakeholders for the sake of national unity and development. The big provinces exhibited flexibility in their approach to accommodate the demands of smaller and backward provinces. The center has sacrificed more than 10 percent of its share for provinces i.e. about Rs.225 billion more were granted to provinces during FY 2011-12 budget [Pakistan Economic Survey (2011)]. All the stakeholders have decided to cut the cost of revenue collection to 1 percent (previously it was 5 percent) to increase the flow of real transfers to provinces. Resultantly, the provincial share from the divisible pool increased from 47.5 percent to 56 percent in the first year and 57.5 percent for all the remaining years of the award.

 

This award is also significant in a way that all the provinces and center have shown a considerate behavior towards the most backward province Baluchistan. Acknowledging its special development needs, all the stakeholders have agreed to provided Baluchistan Rs.83 billion (9.09 percent) of the provincial pool in the first year of the Award. Punjab has given up 1.27 percent, Sindh 0.39 percent, and KPK 0.26 percent of its share. Whereas Baluchistan has gained 1.82 percent. The federal government has given up more than 10 percent of its share for provinces, which has increased the flow of revenues to provinces. The number one beneficiary of this award is Baluchistan with an additional budget of 175 percent. While KPK, the second most benefitted, received 79 percent, Sindh 61 percent, and Punjab 48 percent additional budget. The resource distribution among provinces is illustrated in table 5.

 

If we talk about the distribution parameters, 82 percent weightage has been allocated to population, 10.3 percent to poverty, 5 percent to revenue generation/collection, and 2.7 percent to inverse population density. Table 6 illustrates the different parameters and its weightage against each province.

 

One of the greatest achievements regarding this award is that it has aimed to reduce disparities among the provinces. This award benefits the two relatively本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。