In 1996 the interim government of Farooq Leghari gave a draconian and discriminatory NFC award which was adopted by successive governments; PML-N government in 1998 and also by the Musharaf regime, Leghari’s NFC award further maligned the smaller provinces and added to the misery; it also snatched the right of provinces to collect the services tax; thus further reducing the provinces’ share.
PPP in its 2008 election manifesto promised to reduce the federal share and proposed new multiple-criteria formula for horizontal distribution .
DEADLOCK IS OVER
LAHORE: The 7th National Finance Commission Award has been announced. The provinces are all set to get 12.5 per cent more from the federal divisible pool in the next five years. They will get 56 per cent in 2010 and 57.5 percent for the following four years.
All provinces had already agreed on a vertical distribution. But for the first time they have agreed on a horizontal distribution based on a multiple-criteria formula.
The criteria include population which consitutes 82 per cent of the share, poverty which will get 12 per cent and area and revenue generation that are to get three per cent each.
Announcing the award, Finance Minister, Shaukat Tarin said that in accordance with population density, Punjab will get 51 per cent of the share, Sindh will get 24 per cent, NWFP, 14 per cent and Balochistan 9 per cent.
NWFP will get one per cent from all provinces for fighting the war on terror.
Balochistan will get 83 billion rupees which is 10 billion more than the 6th NFC award.
Hailing the decision as the second achievement of democracy following the restoration of the judiciary, Punjab Chief Minsiter Shahbaz Sharif thanked all provinces for reaching a consensus on the issue.
Balochistan CM, Aslam Raisani, Sindh CM Qaim Ali Shah, Balochistan CM, Ameer Haider Hoti also hailed the mutual agreement on formulae for division under the NFC as a great acheivement. -DawnNews