Charter of the Economy Table 7.5: Coverage of Expenditure by Net Revenues of Federal Governments(%) 2001-02 2004-05 2009­10 7 th NFC Award 2014-15 2018-19 2019-20 Debt Servicing 100 100 100 100 97 100 Defense Expenditure 100 100 100 100 0 54 Development Expenditure 44 100 75 18 0 0 Other Current Expenditure 0 12 0 0 0 0 Source : MOF, Fiscal Operations 7.2. The 10 th NFC The 10 th NFC has recently been constituted and has held its first meeting. The terms of reference of the Commission given by the President are as follows: a) Distribution between the Federation and the Provinces of the net proceeds of the following taxes: i) Taxes on income, including corporation tax, but not including taxes on income consisting of renumeration paid out of the Federal Consolidated Fund. ii) Taxes on the sales and purchases of goods imported, exported, produced, or con­sumed. iii) Export duties on cotton, and such other export duties as may be specified by the President. iv) Such duties of excise as may be specified by the President; and v) Such other taxes as may be specified by the President. b) Making of grants-in-aid by the Federal Government to the Provincial Governments. c) Exercise by the Federal Government and the Provincial Governments of the borrowing powers conferred by the Constitution. d) Assessment and Allocation of resources to meet expenditures related to Govern­ments of the States of Jammu and Kashmir, Gilgit-Baltistan and newly merged districts of Khyber-Pakhtunkhwa(erstwhile FATA). e) Assessment and allocation of resources to meet expenditures made on security and natural disasters/calamities. f) Assessment of total public debt and allocation of resources for its repayment. g) Rationalization of subsidies given by the Federal and Provincial Governments in their budgets and agreeing on a mechanism to finance them. 68