FCC approves Public Finance Management Reforms

ISLAMABAD: The Fiscal Coordination Committee (FCC) on Saturday approved Public Finance Management Reforms, which set out a number of conditions for the federal government to provide grants to provincial governments, a statement said.

Abdul Hafeez Shaikh, adviser to Prime Minister on finance, revenue and economic affairs chaired the meeting FCC.

“The meeting considered the recommendations of the FCC Sub-Committee on Public Finance Management Reforms on incentive grant system to provinces under Performance for Results Program,” it added.

The committee approved the incentive grant for provinces as proposed by the sub-committee with the direction that further refinement, if required, may be made in the procedures/process in consultation with the provinces.”

Federal government will provide grants to provinces, through the incentive grant system, subject to fulfillment of certain baselines in the public finance management and social sector developments, 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.

The FCC is a forum constituted by the Council of Common Interests for the purpose of ensuring cooperation and coordination among the federating units on fiscal matters.