What is the main purpose of the National Finance Commission (NFC) in Pakistan?
A) To distribute financial resources between the federal and provincial governments
B) To regulate the banking sector
C) To set tax rates for all provinces
D) To develop economic policies for trade
Which article of the Constitution of Pakistan mandates the establishment of the NFC?
A) Article 172
B) Article 160
C) Article 203
D) Article 134
In which year was the first NFC award implemented in Pakistan?
A) 1973
B) 1951
C) 1961
D) 1990
The distribution of resources under the NFC award is based on which factors?
A) Population, poverty, and backwardness
B) Population and GDP
C) Population, economic performance, and land area
D) Population, geographical size, and military strength
Which province has historically been the largest recipient of the NFC award in Pakistan?
A) Sindh
B) Balochistan
C) Punjab
D) Khyber Pakhtunkhwa
How often is the National Finance Commission (NFC) award reviewed and revised?
A) Every 5 years
B) Every 10 years
C) Every 3 years
D) Every 7 years
The 7th NFC award in Pakistan was announced in which year?
A) 2008
B) 2010
C) 2015
D) 2020
The revenue distribution formula in the NFC award is based on which primary component?
A) Financial strength of provinces
B) Population of each province
C) GDP contribution by each province
D) Government debt of provinces
Which province has the least share in the NFC award based on the population and economic factors?
A) Khyber Pakhtunkhwa
B) Sindh
C) Balochistan
D) Punjab
Which body is responsible for recommending the terms of the NFC award?
A) The President of Pakistan
B) The National Assembly
C) The Finance Minister
D) The NFC Committee
Which NFC award introduced the concept of including the poverty index and backwardness in the distribution formula?
A) 5th NFC Award
B) 6th NFC Award
C) 7th NFC Award
D) 4th NFC Award
What percentage of the federal divisible pool is allocated to provinces under the 7th NFC Award?
A) 57.5%
B) 60%
C) 50%
D) 70%
The 7th NFC Award has increased the share of which province the most?
A) Sindh
B) Balochistan
C) Punjab
D) Khyber Pakhtunkhwa
Which province had a share of 9.09% in the federal divisible pool under the 7th NFC Award?
A) Khyber Pakhtunkhwa
B) Balochistan
C) Punjab
D) Sindh
What was the main reason for revising the NFC award in 2010?
A) To account for inflation
B) To reduce the federal government’s share
C) To ensure better resource distribution based on population and poverty
D) To increase federal control over provincial resources
Under the NFC award, which of the following taxes is primarily the responsibility of provincial governments to collect?
A) Sales tax
B) Income tax
C) Property tax
D) Federal excise duty
Which factor is used to calculate the provincial share in the 7th NFC Award’s resource distribution?
A) Gross national product
B) Provincial revenue generation capacity
C) Population, poverty, and backwardness
D) Educational standards of each province
Which of the following is a key objective of the NFC Award?
A) Ensuring equitable distribution of national wealth
B) Maximizing foreign investment
C) Reducing provincial autonomy
D) Strengthening the federal government
Which province’s share in the NFC award increased significantly due to its resource needs in the 7th NFC Award?
A) Khyber Pakhtunkhwa
B) Sindh
C) Punjab
D) Balochistan
What is one of the major challenges in implementing the NFC award?
A) Political consensus
B) Economic recession
C) Global sanctions
D) Cultural differences
Which government body has the authority to approve the NFC Award after it is recommended?
A) The President
B) The Senate
C) The National Assembly
D) The Prime Minister
The 6th NFC Award was finalized in which year?
A) 2000
B) 2009
C) 2006
D) 2012
Which province was given an additional share in the federal divisible pool due to its energy requirements under the 7th NFC Award?
A) Khyber Pakhtunkhwa
B) Punjab
C) Balochistan
D) Sindh
How is the issue of horizontal and vertical imbalances in resource distribution addressed in the NFC Award?
A) By giving more resources to the richest province
B) By ensuring equitable distribution based on population and poverty
C) By reducing the federal government’s control
D) By cutting taxes in poorer provinces
Which of the following provinces was allocated a larger share in the 7th NFC Award to address its higher poverty levels?
A) Sindh
B) Punjab
C) Khyber Pakhtunkhwa
D) Balochistan
What significant change occurred in the 7th NFC Award compared to the previous awards?
A) Increase in federal share
B) Introduction of the poverty and backwardness criteria
C) Reduction of provincial autonomy
D) Equal distribution among all provinces
What is the main challenge faced by Balochistan in terms of resource allocation under the NFC award?
A) Lack of tax revenue
B) Small population
C) Economic dependency on federal support
D) High literacy rate
Which body holds the power to revise the NFC Award distribution formula?
A) The Prime Minister’s Office
B) The National Assembly
C) The NFC Committee
D) The President
How does the NFC Award impact fiscal federalism in Pakistan?
A) It weakens the federal government’s authority
B) It helps to balance resources between federal and provincial governments
C) It concentrates resources within the federal government
D) It reduces the financial autonomy of provinces
Which of the following is not considered in the resource distribution under the NFC Award?
A) Population
B) Fiscal capacity
C) GDP contribution
D) Educational standards
How does the NFC Award contribute to political stability in Pakistan?
A) By increasing taxes across all provinces
B) By ensuring equitable financial distribution
C) By focusing on military spending
D) By reducing the authority of provincial governments
