Time to raise finances for priority sectors

Apparently, there seems to be more self-assertion by provinces in the country’s public policies, as indicated by record high annual development plans, while linking the provincial budget surpluses for fiscal consolidation to actual and not projected federal fiscal transfers. The existing centralised framework of fiscal federalism has been put under some pressure. The PML-N-ruled Punjab government has allocated a Rs740 billion estimated provincial surplus for FY26, amid an understanding reached between the federal government and the International Monetary Fund. The provincial finance minister, however, clarified, “It is pertinent to mention that the achievement of this provincial surplus is directly related to FBR’s [Federal Board of Revenue] revenue target.”