NFC Award | MCQs

Explanation

The NFC Award is enacted through mathematical formulation between federal government and provincial governments.

History of distribution of revenue between Center and Provinces in the subcontinent dates back to Government of India Act 1935. Pakistan came into existence on 14th august 1947. After the creation of the country, first award of distribution of revenue was announced in 1952 popularly known as Raismen award. It distributed the revenue between the center and provinces of the federation of Pakistan. Third constitution of Pakistan was passed in 1973 and was effected on 14th August 1974. Article 160 (1) of the constitution of the country provides for the establishment of the National Finance Commission (NFC). Article 160 (2) of the constitution provides:

Explanation

Under the new NFC Award formula:

• Balochistan: 9.09% (a significant rise of 10%)
• Punjab: 51.74% from the divisible pool
• Sindh: 24.55%
• Khyber-Pakhtunkhwa: 14.62%

Changes in shares:

• Punjab: Gave up 1.27%
• Sindh: Gave up 0.39%
• Khyber-Pakhtunkhwa: Gave up 0.26%
• Balochistan: Gained overall.

Explanation

NFC enacted since 1951

Explanation

The fourth NFC award was declared in 1991 by the PML government after successfully reaching the concession with the four provinces.

For the first time in the short history of Pakistan, the fourth NFC Award had recognized the rights of the provinces on natural resources and the provinces were given royalty and gas development surcharge on oil and gas.[8] The first fifth NFC Award was announced in 1995 by Prime Minister Benazir Bhutto.