What is the primary objective of Pakistan’s annual budget?
a) To set economic growth targets
b) To allocate resources for government expenditure
c) To determine tax policies
d) To control inflation
In which month does the Government of Pakistan usually present its annual federal budget?
a) February
b) May
c) June
d) July
What is the term used for the revenue generated by the government through taxes in Pakistan’s budget?
a) Expenditure
b) Income
c) Revenue
d) Deficit
What is the fiscal deficit in Pakistan’s budget?
a) Total government expenditure
b) Total government revenue
c) The difference between government expenditure and revenue
d) The amount spent on defense
Which of the following is a major source of government revenue in Pakistan’s budget?
a) Foreign aid
b) Taxation
c) Privately owned enterprises
d) Export tariffs
What is the major component of Pakistan’s budgetary expenditure?
a) Public health
b) Defense
c) Infrastructure development
d) Social welfare programs
How does Pakistan primarily finance its budget deficit?
a) Foreign investment
b) Domestic loans and borrowing
c) Tax revenue
d) Selling government assets
What is the primary goal of Pakistan’s fiscal policy?
a) To regulate inflation
b) To increase foreign reserves
c) To ensure public debt remains sustainable
d) To achieve economic growth and development
In the context of Pakistan’s budget, what is the meaning of “public debt”?
a) The debt of private sector corporations
b) Money owed by the government to external and internal creditors
c) Debt arising from foreign trade
d) Loans taken for infrastructure projects
Which of the following is one of the challenges faced by Pakistan in managing its fiscal policy?
a) High foreign investment
b) Tax evasion
c) Decline in public expenditure
d) Excessive foreign trade
What is the role of the Federal Board of Revenue (FBR) in Pakistan’s fiscal policy?
a) To determine government expenditure
b) To regulate foreign trade policies
c) To collect taxes and enforce tax policies
d) To manage the country’s foreign reserves
What is the main tax collection method used by the Government of Pakistan in its budget?
a) Direct taxation
b) Indirect taxation
c) Sales tax only
d) Corporate taxation
Which of the following represents the largest portion of Pakistan’s budgetary expenditure?
a) Education
b) Infrastructure development
c) Defense
d) Health services
What is the purpose of the “Public Debt Management” in Pakistan’s fiscal policy?
a) To reduce public spending
b) To ensure loans are paid on time
c) To attract foreign investors
d) To increase private sector investments
How does Pakistan’s government attempt to reduce its fiscal deficit?
a) By increasing imports
b) By reducing government expenditures
c) By borrowing from private investors
d) By increasing foreign aid
What is a major source of Pakistan’s foreign exchange reserves, impacting the national budget?
a) Foreign tourism
b) Export earnings
c) Foreign direct investment
d) Remittances from overseas Pakistanis
What is the objective of the “monetary policy” in relation to fiscal policy in Pakistan?
a) To control government revenue
b) To regulate currency flow and interest rates
c) To allocate resources for public spending
d) To manage foreign reserves
Which of the following measures has Pakistan taken to address its fiscal deficit?
a) Raising income taxes
b) Reducing military expenditure
c) Introducing austerity measures
d) Increasing export tariffs
Which international institution does Pakistan often rely on for financial assistance related to its budgetary needs?
a) World Trade Organization (WTO)
b) World Bank
c) International Monetary Fund (IMF)
d) United Nations Development Programme (UNDP)
What is the impact of inflation on Pakistan’s budget?
a) Increased purchasing power for citizens
b) Decreased government revenue
c) Increased cost of imports
d) Enhanced domestic savings
What is the purpose of the “fiscal stimulus” in Pakistan’s budget policy?
a) To reduce government debt
b) To increase government revenue
c) To stimulate economic growth during a downturn
d) To reduce the unemployment rate
Which of the following is a major component of Pakistan’s public sector expenditure?
a) National defense
b) Export subsidies
c) Environmental protection
d) Sports and culture
Which financial instrument does the Pakistani government use to manage its debt?
a) Bonds and T-bills
b) Corporate tax breaks
c) Foreign grants
d) Public-Private Partnerships
What is a common feature of Pakistan’s fiscal policy regarding subsidies?
a) Subsidizing energy costs
b) Providing subsidies to foreign investors
c) Reducing subsidies for education
d) Increasing agricultural subsidies
How does Pakistan aim to address its tax revenue shortfall?
a) By increasing indirect taxes
b) By reducing corporate tax rates
c) By improving tax collection mechanisms
d) By reducing tax exemptions
What is one of the key fiscal reforms that Pakistan has introduced in its budget?
a) Introduction of GST on services
b) Reduction of import tariffs
c) Introduction of universal basic income
d) Introduction of digital tax systems
What percentage of Pakistan’s total tax collection comes from the sales tax?
a) 20%
b) 30%
c) 40%
d) 50%
Which of the following is part of Pakistan’s fiscal policy to control inflation?
a) Cutting taxes
b) Subsidizing food prices
c) Reducing government spending
d) Increasing public sector employment
What is Pakistan’s debt-to-GDP ratio a measure of?
a) Government spending on infrastructure
b) Government debt relative to the country’s economic output
c) Foreign aid dependency
d) The proportion of government revenue from taxes
How does Pakistan finance its fiscal deficit when domestic resources are insufficient?
a) By printing more money
b) By borrowing from international lenders
c) By reducing public sector salaries
d) By increasing exports
What is the key challenge facing Pakistan in managing its fiscal policy?
a) Declining population growth
b) Over-reliance on foreign aid
c) Large informal economy
d) Low government spending on defense
