National Finance Commission Award

The National Finance Commission Award is a series of planned economic program enacted since 1951. Constituted under the Article 160 of the Constitution, the program was emerged to take control of financial imbalances and equally managed the financial resources to four provinces to meet their expenditure liabilities while alleviating the horizontal fiscal imbalances. As per Constitution, the program awards the designs of financial formulas of economic distribution to provincial and federal government for five consecutive years. All together, a total of seven awards has been reimbursed since its emergence in 1951, by Prime Minister Liaquat Ali Khan. Stipulations and directions mentioned by the Constitution, the provisional governments and federal government competes to get higher share of the program's revenues in order to stabilize their own financial status.

Intergovernmental transfer of economic resources is chaired by the President of Pakistan whose constitutional purpose is to supervise the system of fiscal transfer to correct the vertical fiscal imbalance between provincial and federal government, and horizontal fiscal imbalances between four provinces. Government financial specialists, mathematicians, and economists studied the mathematical and statistical aspects of the program before recommending the government to enact the program. Due to the program producing a political realignment and the constitutional stipulation regarded a unanimous political concession between four provinces, the program has fever conclusive results, and only seven awards has been enacted since its emergence in 1951.

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