Article Type

Article

Description

Pakistan continues to suffer from ‘confused federalism’ where weak provincial and local bodies are unable to match the ability of the central government to mobilise resources or provide services. Provinces and districts where most interactions take place between citizens and the government have ended up with weak authority and inadequate financial resources but a heavy burden of responsibilities. The more remote federal government enjoys most of the authority, substantial financial resources and the main responsibilities of defence, communications and foreign affairs. Other responsibilities have been assumed along the way on the plea that the provinces do not have the capacity to deliver. But it is a vicious circle. As the capacity of the provincial and district governments to perform is eroded due to lack of resources, the federal government assumes more responsibilities. The federal government alone has the powers to raise external and domestic debt and therefore they are able to expand their financial resources by running fiscal deficits which, in turn, create a liability for future tax revenues in the form of debt servicing.

Publication Source

Dawn

Publication Date

6-21-2009

Pages

1-4

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