ISLAMABAD – Finance Minister Muhammad Aurangzeb said any arrangements related to the National Finance Commission (NFC) Award will be made only through consultation with the provinces, clarifying that no decision in this regard can proceed without their agreement and constitutional approval.
Speaking during TV interview, the finance czar said that NFC is a constitutional mechanism for distribution of financial resources between the federation and the provinces, and any changes or developments must be made with mutual understanding and consensus.
He said that in the current economic and security environment, provincial governments have assured cooperation with federal government, for which the centre is grateful. He added that stronger coordination between the federation and provinces is necessary to maintain economic stability under prevailing national challenges.
Aurangzeb said the federal budget has been prepared in line with vision of PM Shehbaz Sharif after detailed consultations with coalition partners, provincial governments and international financial institutions.
On tax policy, the finance minister said that the government focused on improving enforcement and strengthening the existing tax system rather than introducing large-scale new taxes. He said efforts are underway to broaden the tax base and curb tax evasion through improved administrative measures.
He said that when the present government assumed office, annual tax revenues stood at around seven trillion rupees, which are expected to reach approximately thirteen trillion rupees by the end of the current fiscal year due to reforms, digitisation and improved financial discipline. The minister also said that steps have been taken in the budget to provide relief to the salaried class, particularly low and middle-income earners, through rationalised tax rates and adjustments in existing slabs.
Aurangzeb called NFC Award mechanism a constitutional arrangement that determines distribution of financial resources between the federal government and the provinces. He noted that the last major NFC Award in 2010 significantly increased provincial shares, while consensus on a new award has remained pending since then.
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