A RECENT comment by the federal planning minister describing the 18th Amendment as flawed has sparked a new debate between the supporters of a powerful centre and those who want stronger federating units for a fairer, more effective federal system.

Although the minister indicated that the PTI government did not plan to clip the provinces’ administrative and financial powers, his words have elicited a strong reaction from the opposition parties in defence of hard-won provincial rights.

The amendment, which was forged through consensus a decade back, not only transferred greater administrative and fiscal authority to the provinces, but also gave more powers to parliament.

That the opposition felt the need to rebut the government’s view despite the ruling elite lacking the parliamentary majority to reverse the devolution process set in motion by the 18th Amendment, shows the growing trust gap between the two sides.

At one end is the fear that provincial autonomy could be eroded while at the other, there is the concern that the amendment, as well as the seventh National Finance Commission award, have administratively and financially weakened the centre by delegating too many legislative powers to the provinces and diverting a larger portion of fiscal resources to them.

The debate over greater administrative and financial autonomy allowed to the provinces under the amendment and the seventh NFC award is intensified every time the centre ruled by one political party finds it difficult to control and dictate a province governed by another.

One of the main reasons for this acrimony stems from the fact that the platform of the Council of Common Interests is hardly used to resolve issues between the centre and the provinces.

Further, there is a need to realise that the financial problems faced by the federal government have little to do with the increase in the provincial share from the federal tax divisible pool under the NFC award.

The fault lies with the centre because it has failed to broaden the tax base and collection as projected in the award or to cut its expenditure.

How can the provinces be blamed if the central government has continued to borrow heavily at higher interest rates to finance the functions it otherwise should have discarded after their devolution to the federating units?

The claim that provincial finances have grown exponentially under the NFC award is also debatable.

Indeed, the provinces are getting greater federal transfers from the divisible pool, but federal policies are responsible for adding drastically to their current expenditure such as their salary bills.

So it is advisable for the centre to look at all aspects of the debate before blaming the units for its troubles.

Similarly, the provinces also need to ramp up their expenditure on health, clean drinking water, sanitation, education, etc to prepare themselves for any future health crisis instead of looking towards federal support in such times.

Published in Dawn, April 29th, 2020