ISLAMABAD: As a heated debate on constitutionality of the extended life of the seventh National Finance Commission and announcement of federal budgets in the absence of a new NFC award continues to take place in and outside parliament, the Senate secretariat has sent a ruling recently given by Chairman Raza Rabbani on the issue to stakeholders — the president, prime minister and provincial chief ministers.

Mr Rabbani ruled that it was a constitutional obligation to finalise and announce the NFC award within five years of the constitution of the commission.

He said that in terms of Clause (1) of Article 160 of the Constitution, the president shall constitute an NFC within five years. In terms of Clause (1), read with Clause (2) of Article 160, the NFC shall give its recommendations to the president before the expiration of its five-year tenure.

Explaining the procedure to be adopted, the Senate chairman said that immediately after the announcement of an award, the president shall constitute the next NFC to give recommendations within its tenure. The NFC shall give its recommendations to the president well before the expiration of its tenure. The recommendations shall be given effect vide a presidential order, in terms of Clause (4) of Article 160 of the Constitution, hence completing the entire procedure within five years.

“I agree with the contention of the Minister for Law and Justice that historically the NFC Awards have remained effective for more than five years, sometimes till sixteen years. However, I am also conscious of the fact that the constitutional derailments and discontinuity of the Parliament has also remained a factor in this regard. Therefore, without touching upon the merits of previous NFCs and their Awards and disturbing the scheme of the present Award, which remains effective, position reflected ….. will play a pivotal role in ensuring fiscal decentralisation and participatory federalism through enforcement of constitutional rights of the provinces.”

Mr Rabbani had directed the Senate secretariat to send a copy of this ruling to the president, prime minister, minister for law and justice, minister for parliamentary affairs, provincial chief ministers and speakers of provincial assemblies for necessary action.

The ruling rejects the plea taken by the government that under Article 160 of the Constitution, it was an obligation to set up the NFC at intervals, not exceeding five years, and that the announcement of a new award was not a constitutional requirement.

Published in Dawn, November 22nd, 2017