KARACHI - The Punjab government has challenged the Sindh and other three provinces' claims that resources are being distributed on the sole criteria of population and argued that presently the resource transfers to the provinces are being made on three principles such as divisible pool is divided on the basis of population, straight transfers on location basis and subventions on need basis, The Nation learnt on Monday. On the pattern of other provinces, the Punjab government has also prepared its case for recently formed National Finance Commission Award which likely to start its deliberations very soon after Eid. Sources privy to the development told The Nation that Punjab government has made minor changes in its official position on NFC which it had presented in the meetings of last National Finance Commission which failed in reaching consensus formula. Opposing the models of revenue resource distribution which were being adopted in Asian and other countries', Punjab government said the fiscal federalism and revenue sharing could be of limited value to Pakistan due to unique nature of each country and their distinct levels of autonomy and receipt base. The vertical imbalance as well as the composition of divisible pool issues need to be kept in view, official said, adding that the proposed options were deficient technically as they did not fit due to level of provincial autonomy in the country models, expenditures and receipts of the provinces of the country models, whether the resource basket includes development funds, the total scenario of transfers to the provinces in the country models and relevance of the findings to Pakistan in its unique context. The Punjab government official said that we are federation and the vision of federation so development and equalization in achieving growth must to be considered while formulating recommendations for resource distribution. "In the present NFC award to achieve this goal subventions are being granted to all the provinces and it should be continued until reaching on consensus point of view among the provinces", he suggested. Punjab official further said that the revenue sharing method should of such nature that every province should be benefited equally and none of province's shares must not decreased in case of change in present resource distribution formula. The Punjab government proposed that at the macroeconomic level five elements such as transfers of taxes, special grants/subventions, straight transfers, allocation of development funds under NEC arrangements and additional distribution of development funds can be taken into account for transfers to provinces. Punjab government official was of the view that the important elements for consideration of distribution of resources are adequacy, efficiency and equity. Opposing the idea of Sindh government for induction of revenue collection in resource distribution among the provinces Punjab government official said that geographical dispersal of tax collection created confusion for generation of income. The tax levying and tax collections are two separate activities, official of Punjab government said, adding that the headquarters of a corporate entity could be located at one place while disposal of taxable items take place another place so majority of revenue collection could not be considered in Sindh. Giving the example, he said that excise duty for five industries contributes about 85 percent of the excise tax so we should be careful while taking into the consideration the different criteria for resource distribution. Under the NFC arrangements, he said the current expenditure needs to be looked into consideration while the National Economic Council decides about the allocations of the development funds as backwards was to be addressed through development expenditure and not through current expenditure. Meanwhile, when contacted Punjab finance minister Tanvir Asharaff Kaira told The Nation that he did not got briefing from his department about the NFC so he could not talk on this issue. After getting briefing from his department he will meet with Punjab Chief Minister Shahbaz Sharif very soon and get guidelines from him for official position on NFC of province, he said.