A federation is created when states or provinces come together with the intention to create a mutually beneficial structure of governance.

These states/provinces agree to establish a federal government to manage certain specific and important subjects collectively, while leaving most subjects to be governed by the provinces/states themselves.

Under the constitution, the federal government is tasked with the subjects of defence, foreign policy, commerce and trade, tax collection, strategic highways, shipping and maritime affairs, central banking and some other corresponding responsibilities. Part II of the federal legislative list contains the functions of the Council of Common Interests (CCI).

The country's tax revenue is targeted at Rs14,000 billion (or Rs14 trillion) this year. This amount is to be collected from all four provinces and the ICT for meeting the expenses of the provinces; and to share the burden of running the federal government.

Given the minimal and supporting responsibilities assigned by the provinces to the federal government and excluding the vast and important subjects of education, health, law and order, development, local government, agriculture, industry etc, the 7th National Finance Commission Award (given before the 18th Amendment in 2010) fixed the share of provinces collectively at 57.50 per cent and that of the federal government at 42.50 per cent. This proportion unfairly favours the federal government as it did not take into account the Rs5000 billion (or Rs5 trillion) non-tax revenue in its coffers.

In the past, the federal government has not exhibited fiscal responsibility or........

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