ISLAMABAD: Fiscal Coordination Committee (FCC) on Saturday has given go-ahead to a proposed incentive based system, under which, federal government will provide grants to the provinces, subject to fulfillment of certain baselines in their public finance management
The FCC- a forum constituted by Council of Common Interest (CCI) for ensuring cooperation among the federating units on fiscal matters held its first meeting under the newly appointed advisor to Prime Minister on Finance, Revenue and Economic Affairs, Dr Abdul Hafeez Sheikh.
A press statement issued after the huddle said the committee considered the recommendations of sub -committee on public finance management reforms
The sub- committee has proposed incentive based grant system for provinces under what is being tagged Performance for Result Program.
FCC approved the incentive based grants system for provinces as proposed by the sub- committee and asked the panel to further refine it in consultation with provinces.
Under the proposed system federal government will provide grant to the provinces subject to fulfilment of certain baselines in the public management and social sector development- especially in health and education sectors.
The meeting also reviewed the bi-annual implementation of the NFC Award for the period January-June, 2018 and approved the report for presentation to the Parliament and Provincial Assemblies.
Chief Minister of Sindh, Finance Ministers of Punjab, Khyber Pakhtunkhwa, Balochistan, senior officials of the Ministry of Finance and Finance Departments of the provinces and the AJ&K attended the meeting
