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IMAGINE a large joint family living under one roof, with the federal government as the head of the household and primary breadwinner. The four provinces are the adult children who live in the same house but manage their own rooms and budgets.
Under the NFC Award, the head of the household transfers roughly 60 per cent of the family’s income to the children to run their rooms, covering expenses such as education, health and development. The Centre retains the remaining 40pc. However, it is perpetually short of cash because the share is insufficient to service its debts while also paying for defence.
Enter the IMF in the role of an exacting bank manager. It extends loans to plug the deficit but keeps a close eye on the family’s books. One of its long-standing conditions is that the children collectively save a substantial portion of their allowance and post a surplus.
This year, however, the provinces face an additional requirement: a Rs1.04 trillion transfer to the Centre under Article 164 of the Constitution. This is not the same as a surplus. In a surplus, the adult children still own the money; they simply do not spend all of it, so that the overall household finances appear healthier to the bank. Thus, Punjab’s Rs910bn surplus and Balochistan’s Rs46bn surplus remain on provincial books and are not handed over to Islamabad to finance federal spending.
