CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
A subsidy in the federal budget is intended primarily to:
A. Reduce the effective cost or support targeted sectors/consumers
B. Increase exchange-rate volatility
C. Replace the Constitution
D. Set the policy rate
Correct Answer: A
Subsidies provide financial support that lowers costs or sustains targeted activities.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
Budget Estimates (BE) generally refer to:
A. Planned allocations/receipts for the budget year
B. Only actual audited spending
C. Only external debt
D. Only tax arrears
Correct Answer: A
BE are forward-looking budget figures.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
Revised Estimates (RE) generally represent:
A. Updated estimates for an ongoing/previous budget year
B. Only provincial estimates
C. Foreign-exchange forecasts
D. Census projections
Correct Answer: A
RE update earlier budget estimates using newer information.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
A budgeted figure is best understood as:
A. A target/estimate for the fiscal year
B. An audited final outcome
C. A court order
D. A monetary-policy rate
Correct Answer: A
Budget estimates are planned figures and can differ from actual outcomes.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
Interest payments in Pakistan's budget are strongly linked to:
A. Public debt stock and interest rates
B. Only exports
C. Only remittances
D. Only population growth
Correct Answer: A
Debt stock and borrowing costs drive interest payments.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
Development expenditure is most directly associated with:
A. Long-term public projects and capital formation
B. Routine salaries only
C. Interest payments only
D. Foreign exchange dealing
Correct Answer: A
Development spending supports projects and public investment.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
A reduction in fiscal deficit-to-GDP ratio generally indicates:
A. Fiscal consolidation
B. Currency demonetisation
C. Trade embargo
D. Automatic recession
Correct Answer: A
A lower deficit ratio is generally associated with fiscal consolidation.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
Which budget concept best measures the government's position before interest costs?
A. Primary balance
B. Trade balance
C. Current account
D. Exchange rate
Correct Answer: A
The primary balance excludes interest costs.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
Bank borrowing in the federal budget can involve:
A. T-bills, PIBs and Sukuk
B. Only foreign grants
C. Only remittances
D. Only export proceeds
Correct Answer: A
Government securities such as T-bills, PIBs and Sukuk are financing instruments.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
The main purpose of a budget's financing plan is to explain:
A. How the deficit will be financed
B. How elections are conducted
C. How monetary policy is set
D. How provinces appoint officials
Correct Answer: A
Financing shows domestic/external borrowing and other means used to cover the deficit.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
Non-tax revenue may include:
A. Profits/dividends and regulatory receipts
B. Only income tax
C. Only customs duty
D. Only provincial sales tax
Correct Answer: A
Non-tax revenue includes dividends, profits, fees, levies and other receipts.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
Which is normally an indirect federal tax?
A. Income tax
B. Sales tax
C. Wealth declaration
D. Property rent
Correct Answer: B
Sales tax is an indirect tax.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
Which is normally classified as a direct tax?
A. Income tax
B. Sales tax
C. Customs duty
D. Federal excise duty
Correct Answer: A
Income tax is a direct tax; sales tax, customs and excise are indirect taxes.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
A fiscal deficit occurs when:
A. Exports exceed imports
B. Government expenditure exceeds revenue and non-debt receipts
C. Inflation falls
D. Reserves rise
Correct Answer: B
A fiscal deficit reflects a gap between public expenditure and available non-debt resources.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
Under the NFC framework, a major part of federal tax receipts is:
A. Transferred to provinces
B. Transferred to SBP reserves
C. Paid only to SOEs
D. Converted into foreign exchange
Correct Answer: A
The divisible pool is shared with provinces under the NFC Award.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
Which institution is primarily responsible for collecting federal taxes in Pakistan?
A. State Bank of Pakistan
B. Federal Board of Revenue
C. Planning Commission
D. NFC Secretariat
Correct Answer: B
The Federal Board of Revenue administers major federal taxes.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
A primary surplus means that government revenue exceeds expenditure excluding:
A. Defence spending
B. Interest payments
C. Provincial transfers
D. Development spending
Correct Answer: B
The primary balance excludes interest payments.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
In Pakistan's federal budget, PSDP primarily refers to:
A. Public Sector Development Programme
B. Provincial Social Debt Plan
C. Pakistan Sovereign Deposit Programme
D. Public Service Delivery Policy
Correct Answer: A
PSDP finances federal development projects and programmes.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
On what date is the FY 2026–27 Budget in Brief prefaced by the Finance Division?
A. 1 July 2026
B. 12 June 2026
C. 30 June 2026
D. 14 August 2026
Correct Answer: B
The official document is dated 12 June 2026.
CSS - PMS - CCE - PCS - Current Affairs (C.A)
Federal Budget 2026–27
Which document gives the official overview of Pakistan's FY 2026–27 federal budget?
A. Economic Survey only
B. Budget in Brief
C. SBP Annual Report
D. NFC White Paper
Correct Answer: B
Finance Division's Budget in Brief summarizes revenues, expenditure, deficit and financing.