Pakistan Studies/Affairs MCQs
Topic Notes: Pakistan Studies/Affairs
MCQs and preparation resources for competitive exams, covering important concepts, past papers, and detailed explanations.
Plato
- Biography: Ancient Greek philosopher (427–347 BCE), student of Socrates and teacher of Aristotle, founder of the Academy in Athens.
- Important Ideas:
- Theory of Forms
- Philosopher-King
- Ideal State
1
What happens if the National Assembly does not pass the budget by June 30th?
Answer:
The government cannot legally spend any money starting July 1st
Budgetary authorization is strictly annual. If the Assembly fails to approve the Annual Budget Statement and the Finance Bill by the end of the fiscal year, the government loses the legal authority to withdraw money from the Consolidated Fund or collect taxes, leading to a 'government shutdown' scenario.
2
The 'Guddu' and 'Sukkur' barrages mentioned in irrigation studies are often funded for repairs through which budget head?
Answer:
Provincial ADP or Federal PSDP (if it's a mega project)
Large-scale infrastructure repairs or enhancements for dams and barrages are typically categorized as development projects and are funded through the development budgets of either the province or the federation.
3
Which federal ministry is the 'Planning Commission' part of?
Answer:
Ministry of Planning, Development and Special Initiatives
The Planning Commission is the financial and public policy development institution of the Government of Pakistan. It works under the Ministry of Planning to manage the PSDP and long-term economic visions like 'Vision 2025'.
4
What is 'Capital Expenditure' in the budget?
Answer:
Money spent on acquiring or maintaining fixed assets, such as land, buildings, and machinery
Capital expenditure is investment in assets that will provide benefits over a long period. In the budget, this is mostly reflected in the development projects under the PSDP.
5
The 'Fiscal Responsibility and Debt Limitation Act' (FRDL) was passed to:
Answer:
Legally limit the government's debt-to-GDP ratio and fiscal deficit
Passed in 2005, the FRDL Act aims to ensure that the government maintains a sustainable level of debt. It sets specific targets, such as keeping the public debt below 60% of GDP, although these targets are frequently missed.
6
In the budget, what are 'Grants-in-Aid'?
Answer:
Direct financial assistance given by the center to provinces or other entities that does not require repayment
Grants-in-aid are funds provided by the federal government to provinces, especially those with smaller revenue bases (like Balochistan), to help them meet their budgetary requirements or respond to emergencies.
7
What is 'Fiscal Consolidation'?
Answer:
Policies aimed at reducing government deficits and debt accumulation
Fiscal consolidation usually involves a combination of increasing tax revenues and cutting government spending (austerity) to improve the fiscal position of the country.
8
The 'Annual Development Programme' (ADP) is the provincial equivalent of:
Answer:
The Federal PSDP
Just as the Federal Government has the PSDP, each province has its own Annual Development Programme (ADP) for funding provincial projects like local roads, schools, and hospitals.
9
Which of the following is NOT part of the Divisible Pool?
Answer:
Gas Development Surcharge
While major taxes like Income and Sales tax are shared, certain items like the Gas Development Surcharge or Petroleum Levy are considered 'straight transfers' or non-tax revenue and are handled differently under the NFC.
10
What is the 'Withholding Tax' (WHT)?
Answer:
Income tax deducted at the source of payment
WHT is a common method of tax collection where the payer (like an employer or a bank) deducts the tax from the payment (like salary or interest) and remits it directly to the FBR on behalf of the recipient.