Journal of Contemporary Issues in Business and Government

Abstract

The study plans to analyze the part of fiscal decentralization and macroeconomic
execution of Pakistan. The major goal of study was to investigate the effect of fiscal
decentralization on macroeconomic performance and fiscal resource distribution system
of Pakistan. The study employed secondary data comprising from 1972 to 2014 for
examination. The distribution of resources among federal and provincial governments
never remained simple and always recognized much complicated problem. This study
categorized a number of problems in the system of fiscal division of resources of
Pakistan. To examine the effect of fiscal decentralization on macroeconomic performance
in Pakistan, the study evaluated a brief history of distribution of resources among the
provinces. The commission reviewed the NFC awards since 1991 to improve the
procedure of resource allotment among the provinces in Pakistan. Direct transfers of
finances and grants have been increased for all the provinces due to these awards. The
effectiveness, self-sufficiency and resource generation of Provinces get inducement to
improve because of identical grants and in turn attain financial autonomy