THE scope of work outlined for the newly constituted 11th National Finance Commission makes it clear that negotiations between the centre and the provinces over tax resource distribution will not be smooth.

The new TORs for the commission signal Islamabad’s intent to reclaim the fiscal space ceded to the provinces under the seventh NFC award 15 years ago. The move will be viewed by the provinces as the erosion of their hard-won financial autonomy, and a pushback is inevitable. The new deliverables expect the provinces to shoulder the costs of large development projects, contribute towards federal expenses in the aftermath of natural disasters and finance federal schemes with a provincial impact.

The centre........

© Dawn