7th NFC Award
Introduction.
NFC – National Finance Commission is a constitutional body set up for the distribution of financial resources among the provinces by federal government on annual basis, called National Finance Commission Award. Certain types of taxes collected in each province are pooled, and then redistributed according to the NFC formula.
Constitutional Provision of NFC.
NFC is constituted under Article 160(1) of the 1973 constitution (Annex I) and proposed to be held at the intervals of five years.
Composition of NFC.
Federal Finance Minister – Chairman
Provincial Finance Ministers and other concerning experts which the President may appoint after consultation with provincial Governors [Constitution of Pakistan (1973)].
Main Charter of NFC.
(1) The distribution of specified taxes, duties between federation and
provinces.
(2) The disbursement of grants to provincial governments.
(3) The borrowing powers exercised by federal and provincial
governments.
(4) Any other financial matter referred to commission.
Previously Approved NFC Awards.
1974 - First NFC Award given by the elected government of late Z.A.Bhutto
1991 – Second NFC Award given by PML government, Nawaz Sharif as PM
1997 – Third NFC Award was announced by a caretaker government of Farooq Ahmed Leghari and Prime Minister Malik Meraj Khalid
NFC Award - 2009
A very important and welcome development was the approval of 7th National Finance Commission (NFC) Award 2009 by all four provincial and the federal governments, reflecting political will to resolve key issues.