Fiscal federalism deals with:
It studies how finances are shared between federal, provincial and local governments.
Public Finance & Budgeting MCQs
Explore Public Finance and Budgeting MCQs covering government budgets, taxation, fiscal policy, public expenditure, revenue management, the Public Finance Management Act 2019, Public Procurement Rules 2026, economy of Pakistan, public sector accountability and financial transparency. Suitable for FPSC, PPSC, CSS, PMS and other competitive examinations.
The Fiscal Responsibility and Debt Limitation Act, 2005 of Pakistan provides a target for:
The Act sets rules to bring public debt down to a prescribed percentage of GDP (60%).
Subsidies are best defined as:
Subsidies are a form of government expenditure.
The principle of annuality in budgeting means that:
Appropriations normally lapse at the end of the fiscal year.
Which of the following is an example of non-tax revenue?
Non-tax revenue includes fees, fines, profits of public enterprises, rents and royalties.
The Public Sector Development Programme (PSDP) mainly finances:
PSDP is the federal development budget for infrastructure and social projects.
Cost-benefit analysis of public projects compares:
It is used to decide whether a project is worth undertaking.
Financing a deficit by creating new money through the central bank is called:
It can lead to inflation.
Treasury bills (T-bills) are:
T-bills have maturities of one year or less.
Pakistan Investment Bonds (PIBs) are:
PIBs are issued with tenors such as 3, 5, 10, 15, 20 and 30 years.
The Public Account of the Federation under Article 78(2) includes:
Examples include trust funds, deposits and savings certificates collections.
Incremental budgeting means:
It is the most common traditional method but can perpetuate inefficiencies.
Zero-based budgeting (ZBB) requires that:
ZBB reviews all programs afresh.
A Medium Term Budgetary Framework (MTBF) is:
MTBF aligns spending with policy priorities across several years.
Tax-to-GDP ratio is calculated as:
It measures the tax effort of an economy.
A tax expenditure is:
Tax expenditures act like spending delivered through the tax system.
Sales tax in the form of a value added tax (VAT) is levied on:
VAT is collected at each stage with credit for tax paid on inputs.
Performance-based (results-oriented) budgeting:
It focuses on what government achieves with the money allocated.
Line-item budgeting is a budget format that:
It is simple and good for control but weak in showing results.
Expenditure charged upon the Federal Consolidated Fund (Article 81) is:
Charged expenditure, such as remuneration of judges and the Auditor-General, is not put to vote.
Supplementary and excess grants in Pakistan are dealt with under:
Article 84 covers additional spending beyond the authorized budget.
The National Finance Commission (NFC) is constituted under:
The NFC recommends distribution of resources between the Federation and the provinces.
Horizontal distribution under the NFC award refers to the sharing of resources:
Vertical distribution is between Federation and provinces; horizontal is among provinces.
An expansionary fiscal policy involves:
It aims to boost aggregate demand.
An example of an automatic stabilizer is:
Automatic stabilizers work without new government decisions.