1rends and Patterns in Federal-Provincial Fiscal Flows in Pakistan: A Preliminary Analysis

Sarfraz Khan Qureshi

Abstract


An important aspect of the fiscal relations between the
federal and provincial governments is the command over resources,
expenditure responsibilities and the direction, size and form of fiscal
flows between different layers of government. In most federations,
revenue sources generally assigned to lower levels of governments often
fall short of adequately fulfllling the expenditure responsibilities of
such governments. Given this important feature, the identification of
the predominant central authority over the country's resources and the
implications for public policy of the restructuring of centre-state
fiscal relations to ensure balanced development of all provinces emerge
as important issues. This paper documents trends in centralization for
both the expendit!lre and revenue sides of the budget, traces the
evolution of revenue sharing and other federal transfers and delineates
some policy guidelines in the area of fiscal federalism for Pakistan.
Intra-provincial differences have not been highlighted as the analysis
is carried out at the level of all provinces.

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DOI: https://doi.org/10.30541/v30i4IIpp.785-798

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