NFC award reaches broad consensus: Differences on some issues still hang: adviser
By Ihtashamul Haque
ISLAMABAD, Dec 27: “Disagreement still persists between the centre and the provinces over the new National Finance Commission award but a broad consensus has been reached over the issue,” said Prime Minister’s Adviser on Finance Dr. Salman Shah. Talking to this correspondent here on Tuesday, he said the ministry of finance had finally recommended to President Gen Pervez Musharraf to finalize the new NFC award preferably within the current financial year. “From our side everything is complete,” he added.
The president, he said, was now actively working to narrow differences between the centre and the provinces and to overcome the funding gap in the new formula. Provinces had informed the president about their points of view and urged him to take a decision as early as possible, he added.
“The president is now fully in the picture and has been mandated both by the centre and the provinces to ensure fair distribution of resources,” he said.
Answering a question, the adviser said the federal government had agreed to 50:50 distribution of resources between the centre and the provinces. “We have told the president that the centre which had earlier agreed to offer 47.5 per cent share to provinces, is now ready to stretch this share to 50 per cent in a phased manner,” he added.
The gap in the resources, Dr Shah said, needed to be gradually filled so that the centre did not face financial problems.
However, the advisor made it clear that in case of extending 50 per cent resources to the provinces, certain federal programmes would have to be transferred to them.
The adviser said the funding under the Public Sector Development Programme would have to be modified and made a provincial responsibility after offering the provinces increased share in the new NFC.
Asked about the horizontal distribution of resources among provinces, he said issues relating to population, backwardness, revenues and area were expected to be sorted out by them before the announcement of the new award by the president.
The new award, he said, could be announced by Gen Musharraf along with the announcement of construction of the Kalabagh dam or separately, depending upon the timing of the NFC announcement to be chosen by the head of the state.
Answering a question, he said the new NFC award, if announced, could be implemented within 2005-06, although six months of the current financial year had passed.
