Islamabad: (Web Desk) Federal Minister for Planning Ahsan Iqbal has raised concerns over the current National Finance Commission Award mechanism stating that the federal government is under growing fiscal strain due to existing revenue sharing arrangements with provinces which are limiting its ability to fund major strategic and development projects.
Speaking on a television programme he said the federation’s financial space has significantly narrowed under the present NFC structure. He clarified that the government is not proposing the abolition of the Benazir Income Support Programme but suggested that provincial governments should take responsibility for financing beneficiaries within their own jurisdictions in accordance with the 18th Constitutional Amendment which assigns social welfare responsibilities to the provinces. He added that this adjustment would reduce pressure on the federal budget and allow it to focus on national development priorities.
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The minister also dismissed reports about any proposal to place Karachi under federal administrative control. He further emphasized the need for reforms in the NFC Award to incentivize provinces that effectively manage population growth warning that unchecked population increase could place severe pressure on national resources and services including health education employment and food security by 2050.
Planning Minister Ahsan Iqbal has said the NFC Award is creating financial pressure on the federal government and affecting development planning. He proposed that provinces should finance BISP beneficiaries under their jurisdiction and called for reforms to encourage population control through incentives.
He also rejected reports about Karachi being placed under federal control and stressed the need for long term fiscal reforms.
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