National Finance Commission




1. Introduction----1
2. Historical Perspective ----2
  • Pre-independence Revenue Sharing (Niemeyer Award)---- 3
  • Post-independence Revenue Sharing (Raisman Award)--- 3
  • Revenue Sharing under One Unit ----3
  • Financial Arrangements in the 1973 Constitution ----4

3. Development of NFC Awards over Time -----11
4. Conclusion and Recommendations-----17
Annexures ---- 19
References ----21

List of Tables
Table 1. Provincial Share in the 1970 Award---- 4
Table 2. Provincial Share According to the 1974 NFC Award ----5
Table 3. Provincial Share, 1979 Award ----5
Table 4. Provincial Share, 1990 Award ----7
Table 5. Special Annual Grant to Provinces in 4th NFC, 1990 ----7
Table 6. Matching Grants under the 1996 Award ----8
Table 7. Percentage Provincial Share, 1996 Award ----8
Table 8. Special Annual Grant to Provinces in the 5th NFC Award ----9
Table 9. Percentage Provincial Share, 2006 Award ----10
Table 10. Special Grants to Provinces under the 2006 Award ----10
Table 11. Revenue Assignments among the Federal and Provincial Government ----16

List of Figures
Figure 1. Provincial Shares in Different Years ----10
Figure 2. Straight Transfers to Provinces ----11
Figure 3. NFC over Time ----13
Figure 4. Year-wise Allocation among Provinces ----13
Figure 5. Real GDP per Capita, Provinces ----14
Figure 6. Federal/Provincial Tax Revenues over Time ----16