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SALU-Commerce & Economics Review

Ghulam Muhammad Mangnejo
Assistant Professor at Department of Economics, Shikarpur Campus, Shah Abdul Latif University, Khairpur
Dr Muhammad Saleem Rahpoto
Professor at Department of Economics, Shah Abdul Latif University, Khairpur

This research discovers the influence of fiscal decentralization on economic growth in Pakistan. The secondary data for the period of 33 years from 1980 to 2012 has been used. Regression has been used with the support of Eviews6.1 software. The chief variables like Central Transfers to its provinces, literacy and tax to Gross Domestic Product have significant influence on economic expansion of country. This research has analyzed the horizontal distribution of resources based on population density. The horizontal resources distribution mechanism has been extended through including other elements i.e. inverse population density, poverty, revenue generation, revenue collection and backwardness. The minor weightage has been given to these factors. The study recommends that the horizontal resource distribution must be broadened in real sense by giving appropriate weightage to other factors.