Provincial Finance Commission: options for fiscal transfers

Faculty / School

Faculty of Business Administration (FBA)

Department

Department of Economics

Was this content written or created while at IBA?

Yes

Document Type

Conference Paper

Publication Date

Winter 2008

Author Affiliation

  • Qazi Masood Ahmed is Director Research at Institute of Business Administration, Karachi.

Conference Name

Twenty-fourth Annual General Meeting and Conference of the Pakistan Society of Development Economists

Conference Location

Islamabad, Pakistan

Conference Dates

March 31-April 2, 2009

ISBN/ISSN

77957901600 (Scopus)

Volume

47

Issue

4

First Page

747

Last Page

762

Publisher

Pakistan Institute of Development Economics, Islamabad

Abstract / Description

The Provincial Finance Commissions were constituted in all four provinces of Pakistan in 2001. The Commissions were asked to formulate a formula for the distribution of resources among the districts in their respective province to ensure smooth functioning of the local governments and to minimise the poverty and income inequalities among the districts. This paper analyse to what extent the existing development transfers are based on the existing level of deprivation in the districts by looking at the Rank Correlation between them. This paper also runs different simulations to suggest different options for the provincial governments to improve the distribution formulas.

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