Intergovernmental Transfer Systems

NFC Award

SNG Programme supported Government of the Punjab in preparing its case for the 9 th National Finance Commission (NFC) deliberations. This included development of a simulation model and analysis of fiscal data to prepare the case. The support also included development of a working paper titled ‘Resource Mobilisation at Federal and Provincial Level’.

PFC Award:

SNG provided technical assistance in development and approval of a formula-based Punjab Finance Commission (PFC) Award. The assistance was provided with the objective to ensure availability of adequate resources to local governments in a transparent and predictable manner to be able to improve delivery of services. The support covered the interim PFC Award and regular PFC Award.

Achievements in Punjab:

  • Provided TA for formula based transfer systems in Punjab
  • Interim Award has increased vertical share for LGs from 29% to 37.5%. There is 19% increase in transfers to School Education, 37% increase in transfers to primary & secondary health, and 164% increase in transfers to local governments for WATSAN
  • Regular PFC Award has been approved by Finance Commission for a period of 5 years.
    Vertical Share further increased to 41%.