ISLAMABAD, Jan 19: The amended 6th National Finance Commission (NFC) award will remain in force for five years ‘unless provinces come up with a consensus’ to formulate the 7th award, says Prime Minister’s Adviser on Finance Dr Salman Shah. Talking to Dawn on Thursday, he said: “Now when the decision has been taken to offer additional Rs51 billion to provinces annually, the centre will gradually transfer various functions to the federating units so that they arrange certain funds on their own.”

He said the federal government would reduce its expenditures significantly. “It means we will have to improve our efficiency. We will have to eliminate duplication of various functions in ministries and also we will have to increase our revenue.”

President Gen Pervez Musharraf, he said, had amended Article 16 (6) of the Constitution to offer additional resources in the absence of consensus among provinces over the 7th NFC award.

“Instead of making major structural changes to the award, the president has enhanced the amount of annual funds to the provinces through an amendment,” he pointed out.

The adviser clarified that the new resource distribution formula was part of the existing 6th NFC award and cannot be called a new award. “There is no time limit as far as the amended award is concerned and it can go for five years,” he said. “They (provinces) will have to come up with better suggestions if they want the new award.”