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Showing 41–50 of 50 MCQs
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41
Which province has consistently opposed the 'Revenue Collection' criterion in the NFC?
Correct Option
Option B
Explanation
Balochistan and sometimes KP oppose the revenue collection criterion because they have largely agrarian or informal economies that don't generate much formal tax, arguing that this criterion unfairly rewards provinces with large industrial ports like Sindh.
42
What is the 'Divisible Pool' share of 'Export Duties' on cotton?
Correct Option
Option B
Explanation
Article 160(2)(c) specifically mentions export duties on cotton as part of the taxes that shall be shared between the Federation and the Provinces through the NFC.
43
The 1996 NFC Award was controversial because it introduced the 'Divisible Pool' concept for almost all taxes. Who was the President who oversaw it?
Correct Option
Option B
Explanation
The 1996 NFC Award was finalized under the caretaker government and President Farooq Leghari. It was significant for including almost all federal taxes in the pool, but was criticized for reducing the provincial percentage at the time.
44
Which of these is a 'Non-Tax Revenue' and NOT shared via the NFC divisible pool?
Correct Option
Option B
Explanation
SBP profits are considered federal non-tax revenue. The federal government keeps these profits to help manage its own fiscal deficit, and they are not part of the divisible pool shared with provinces.
45
The 7th NFC Award was signed in which city?
Correct Option
Option C
Explanation
In a symbolic gesture to highlight the importance of Balochistan and the 'Gwadar' port to Pakistan's future, the 7th NFC Award was signed in Gwadar in December 2009 by all five Finance Ministers and the Prime Minister.
46
What happens if a province overspends its NFC allocation?
Correct Option
Option B
Explanation
Provinces must manage their budgets within the NFC transfers and their own-source revenue (like property tax and sales tax on services). Overspending requires borrowing, which is regulated by the federal government and the State Bank.
47
Which criterion in the NFC helps to mitigate the 'Urban-Rural' divide?
Correct Option
Option B
Explanation
The 'Poverty and Backwardness' criterion is specifically designed to channel more funds to rural and underdeveloped regions that lack the industrial base to generate their own tax revenue.
48
The term 'Divisible Pool' includes 'Taxes on the capital value of assets.' This excludes which type of assets?
Correct Option
Option B
Explanation
The Federal Government can collect taxes on the capital value of assets, but Article 160(2)(b) specifically excludes 'taxes on immovable property' (land and buildings), which are a provincial subject for taxation.
49
Who was the Federal Finance Minister who played a key role in the consensus of the 2010 7th NFC Award?
Correct Option
Option B
Explanation
Shaukat Tarin was the Federal Finance Minister in 2009-2010. He is widely credited with using his negotiation skills to convince Punjab to reduce its share and ensure all provinces signed the historic multi-criteria award.
50
The NFC Award is an example of which type of federalism?
Correct Option
Option B
Explanation
Fiscal federalism deals with the division of governmental functions and financial relations between layers of government. The NFC is the cornerstone of fiscal federalism in Pakistan, ensuring that the federating units have the resources to function.
