Charter of the Economy The most favorable ratio of over one is observed in the case of Baluchistan. It reached a peak of over 1.9 in 2019-20. The other two Provinces, Sindh and Khyber-Pakhtunkhwa also have ratios above one. However, after the merger of FATA, the share of Khyber­Pakhtunkhwa has fallen below one. Punjab has had the lowest ratio, close to 0.9. The share of Federal revenues, tax plus non-tax, preempted by transfers to Provincial Governments is given in Table 7.4. In the last year, 2009-10, of the Presidential Order of 2006 this share was 32 percent. It jumped to 42 percent in the first year after the 7 th NFC Award. Table 7.4 also includes the contribution of transfers to total Provincial revenues. The share of transfers is significantly above 80 percent. This highlights the strong vertical link between the Federation and the Federating units in Pakistan. Table 7.4: Growth in Revenue Transfers to Provincial Governments 1990-91 1997-98 2009-10 Total Federal Revenues 448 868 1974 Revenue Transfers to Provincial 171 257 633 Governments Transfers as% Federal Revenues 38.2 29.6 32.1 Total Provincial Revenues 212 314 756 Transfers as% of Provincial Revenues 80.7 81.8 83.7 Source : SPDC; MOF, Fiscal Operations (Rs in Billion) 7 th NFC Award 2014-15 2019-20 3663 5782 1539 2504 42.0 1821 84.5 43.3 3020 82.9 One of the principal objectives behind the relatively liberal dispensation in favor of the Provinces by the 7 th NFC was to promote human development, especially since most of the social services are in the domain of Provincial Governments. Therefore, a relevant question is whether the share of education, health, water supply, etc. has increased in the total expenditure by Provincial Governments. In the case of all four Provinces, the overall level of public expenditure of social services has in fact, increased to almost 3 percent of the GDP. The biggest increase in share of the budget is in Baluchistan from 26 percent in 2009­10 to 38 percent in 2018-19. In the latter year, the largest share of expenditure on social sectors was in Khyber-Pakhtunkhwa at 47 percent. The fundamental question is whether the 7 th NFC Award has led to a faster rate of expansion in the coverage of social services, given the increase in expenditure? Unfortunately, the outcome here has been disappointing. A five-indicator index(primary, middle and secondary education, immunization, drinking water) has been constructed to measure the combined coverage of different social services. There are two major findings as follows: 66