CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
The budget's climate and disaster tagging is designed to:
A. Identify allocations related to climate/disaster objectives
B. Set the exchange rate
C. Calculate remittances
D. Determine election constituencies
Correct Answer: A
The Budget in Brief includes climate and disaster tagging of allocations.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
Privatization proceeds, when budgeted, are generally treated as:
A. A financing/resource item
B. Income tax
C. Workers' remittance
D. Trade deficit
Correct Answer: A
Privatization proceeds can form part of budget financing/resources.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
The federal deficit is financed through a combination of:
A. Domestic and external financing
B. Only remittances
C. Only exports
D. Only provincial taxes
Correct Answer: A
Budgets typically use domestic and external financing sources.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
Which policy mix can support fiscal consolidation?
A. Higher revenue mobilization and controlled expenditure
B. Lower taxes and higher spending without financing
C. Permanent monetization only
D. Ignoring debt service
Correct Answer: A
Consolidation requires improving the revenue-expenditure balance.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
A tax-to-GDP ratio broadly measures:
A. Tax collection relative to economic output
B. Exports relative to imports
C. Reserves relative to debt
D. Population relative to land
Correct Answer: A
It measures tax mobilization relative to GDP.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
Why can actual fiscal deficit differ from budget target?
A. Revenue and expenditure outcomes can deviate from assumptions
B. The definition of deficit changes daily
C. GDP is never measured
D. Budgets are not implemented
Correct Answer: A
Economic conditions and execution affect actual receipts and spending.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
Which source is most authoritative for Pakistan's federal budget MCQs?
A. Finance Division budget documents
B. Unverified social media post
C. Anonymous blog
D. Random messaging group
Correct Answer: A
Official Finance Division documents are primary sources.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
Which budget number should candidates update most carefully in current affairs preparation?
A. Year-specific targets and allocations
B. Definition of taxation
C. Meaning of GDP
D. Meaning of subsidy
Correct Answer: A
Targets and allocations change each fiscal year.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
An increase in nominal GDP, with the deficit unchanged in rupees, would generally:
A. Lower deficit-to-GDP ratio
B. Raise deficit-to-GDP ratio
C. Not affect the ratio
D. Make it equal to inflation
Correct Answer: A
A larger denominator lowers the ratio.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
Which statement about federal PSDP is correct?
A. It is a development allocation
B. It is the policy rate
C. It is a foreign reserve measure
D. It is a customs tariff
Correct Answer: A
PSDP is the federal development programme.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
Which expenditure is most likely classified as current rather than development?
A. Routine government operations
B. Construction of a new dam
C. New motorway project
D. New public university campus
Correct Answer: A
Routine operations are current expenditure.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
Provincial share under NFC reduces:
A. Net revenue available to the federal government
B. Gross exports
C. Workers' remittances
D. SBP policy rate
Correct Answer: A
Transfers to provinces are deducted from gross federal revenue to derive net federal revenue.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
Which is most likely to increase debt-servicing cost?
A. Higher interest rates
B. Higher tax compliance alone
C. Lower borrowing needs
D. Lower debt stock
Correct Answer: A
Higher rates raise the cost of new and floating-rate debt.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
A higher primary surplus can help:
A. Stabilize public debt dynamics
B. Automatically increase imports
C. Abolish inflation
D. Eliminate all taxes
Correct Answer: A
A sustained primary surplus can improve debt sustainability.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
Which item is a financing source rather than ordinary tax revenue?
A. Government securities borrowing
B. Income tax
C. Sales tax
D. Customs duty
Correct Answer: A
Borrowing finances the gap and is not tax revenue.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
Which ratio is most useful for comparing fiscal deficits across years with different economy sizes?
A. Fiscal deficit as % of GDP
B. Deficit in rupees only
C. Population only
D. Exchange rate only
Correct Answer: A
GDP ratios normalize the deficit by the size of the economy.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
If FBR collection exceeds its target with spending unchanged, the deficit will generally:
A. Narrow
B. Widen
C. Have no relationship
D. Turn into imports
Correct Answer: A
Higher tax receipts improve the fiscal balance.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
If expenditure rises while revenue is unchanged, the fiscal deficit will generally:
A. Widen
B. Narrow
C. Disappear automatically
D. Become a trade surplus
Correct Answer: A
Other things equal, higher expenditure widens the fiscal gap.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
Fiscal policy is mainly concerned with:
A. Government taxation and spending
B. Only bank reserve requirements
C. Only exchange-rate quotations
D. Only stock-market listing
Correct Answer: A
Fiscal policy operates through taxation, expenditure and borrowing.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
Which body prepares Pakistan's federal budget documents?
A. Finance Division
B. Election Commission
C. Supreme Court
D. Pakistan Bureau of Statistics alone
Correct Answer: A
The Finance Division prepares and publishes federal budget documents.