Federal Budget of Pakistan MCQs are a must for CSS candidates preparing for Economic Policies, Public Finance, and Governance. The Federal Budget is an annual budget statement submitted by the Ministry of Finance, detailing government spending, revenues, taxation policy, and development schemes. It is a crucial component of economic growth, inflation management, and fiscal stability. CSS candidates need to understand budgetary allocations, taxation patterns, and financial policies.
H2: Structure and Main Elements of Pakistan’s Federal Budget
The Federal Budget is comprised of current spending, spending on development, and sources of revenue. Most revenue comes from direct taxes (corporate tax, income tax) and indirect taxes (customs duties, sales tax). Most spending is on defense, education, health, infrastructure, and debt service. The fiscal deficit targets, subsidies, and social welfare programs are also decided by the government to maintain economic stability.
H3: Economic Impact and Challenges of Pakistan’s Budget
Budget has a direct impact on GDP growth, inflation, unemployment, and foreign investment. Pakistan is usually confronted with fiscal deficits, excessive debt servicing expenses, and dependency on foreign borrowings from IMF and World Bank. Policy actions like tax reforms, public sector expenditure, and austerity programs try to enhance the financial health. Yet, problems such as tax evasion, weak revenue collection, and economic volatility continue to plague. Doing MCQs and free flashcards on Federal Budget of Pakistan will enable CSS candidates to learn budget-making techniques, financial administration, and economic policies that formulate the economy of Pakistan.
The Federal Budget of Pakistan is presented annually in which month?
A) January
B) April
C) June
D) September
Who is responsible for presenting the Federal Budget in Pakistan?
A) Prime Minister
B) Minister of Finance
C) Governor State Bank
D) President
Which government institution approves the Federal Budget of Pakistan?
A) Senate
B) National Assembly
C) State Bank of Pakistan
D) Federal Board of Revenue (FBR)
The Federal Budget covers a financial year running from:
A) January to December
B) March to February
C) July to June
D) September to August
Which sector receives the highest allocation in Pakistan’s federal budget?
A) Health
B) Education
C) Defense
D) Agriculture
What is the primary source of revenue for Pakistan’s federal budget?
A) Foreign aid
B) Taxation
C) Exports
D) Loans from IMF
Which government body collects taxes in Pakistan?
A) State Bank of Pakistan
B) Federal Board of Revenue (FBR)
C) Ministry of Finance
D) National Assembly
A budget that shows higher expenditures than revenues is called:
A) Balanced Budget
B) Deficit Budget
C) Surplus Budget
D) Capital Budget
Which organization provides loans to Pakistan for budgetary support?
A) United Nations
B) World Bank
C) International Monetary Fund (IMF)
D) Asian Development Bank (ADB)
Public sector development programs (PSDP) in Pakistan’s budget focus on:
A) Defense expenditure
B) Infrastructure and social projects
C) Increasing tax collection
D) Printing new currency
What percentage of the GDP is generally allocated to education in Pakistan’s budget?
A) Less than 2%
B) 5%
C) 7%
D) 10%
Which component is NOT a major part of Pakistan’s federal budget?
A) Defense expenditure
B) Development expenditure
C) Debt servicing
D) Foreign exchange rate
The fiscal deficit occurs when:
A) Expenditures exceed revenues
B) Revenues exceed expenditures
C) Budget is balanced
D) Foreign aid is reduced
Which Pakistani ministry is primarily responsible for budget preparation?
A) Ministry of Planning
B) Ministry of Commerce
C) Ministry of Finance
D) Ministry of Economic Affairs
Pakistan’s defense budget is primarily allocated to:
A) Police force
B) Army, Navy, and Air Force
C) Intelligence agencies
D) Cyber security programs
Debt servicing in Pakistan’s budget refers to:
A) Paying salaries of government employees
B) Paying back loans and interest
C) Reducing tax rates
D) Increasing foreign reserves
Which type of tax contributes the most to Pakistan’s revenue?
A) Direct tax
B) Sales tax
C) Property tax
D) Import duties
Pakistan’s budget is divided into how many main parts?
A) Two
B) Three
C) Four
D) Five
Which of the following is a non-tax revenue source in Pakistan’s budget?
A) Customs duty
B) Sales tax
C) Profits from state-owned enterprises
D) Income tax
A surplus budget means:
A) Revenues equal expenditures
B) Revenues exceed expenditures
C) Expenditures exceed revenues
D) Government borrows more
Which sector in Pakistan is often underfunded despite its importance?
A) Defense
B) Transport
C) Education
D) Energy
What is the main aim of Pakistan’s annual budget?
A) Reduce inflation
B) Control expenditure and increase revenue
C) Increase foreign aid
D) Support only industrial growth
Which tax is NOT included in Pakistan’s federal budget?
A) Income tax
B) Sales tax
C) Inheritance tax
D) Customs duty
The Federal Budget must be approved before the start of:
A) Fiscal Year
B) Calendar Year
C) Senate Elections
D) IMF Meetings
Which Pakistani institution is responsible for monitoring inflation and economic indicators?
A) Pakistan Bureau of Statistics (PBS)
B) Ministry of Defense
C) Federal Investigation Agency (FIA)
D) Pakistan Stock Exchange
What is the largest non-development expenditure in Pakistan’s budget?
A) Health
B) Education
C) Debt Servicing
D) Agriculture
Which factor most affects Pakistan’s budget deficit?
A) Increased exports
B) Reduction in remittances
C) Higher tax collection
D) More foreign direct investment
Pakistan’s budget is based on recommendations from:
A) Provincial Assemblies
B) International donors
C) Economic Advisory Council
D) Political parties
Which international organization frequently reviews Pakistan’s federal budget?
A) United Nations
B) World Trade Organization
C) International Monetary Fund (IMF)
D) World Health Organization
