In Pakistan, the National Finance Commission is primarily concerned with recommending the distribution of:
Correct answer: B. Financial resources between the federation and provinces
- A. Seats in the National Assembly
- B. Financial resources between the federation and provinces
- C. Foreign exchange reserves among commercial banks
- D. Licences among private tax consultants
Explanation
Under Article 160 of Pakistan's Constitution, the National Finance Commission deals with the distribution of certain federal tax proceeds and related financial matters between the federation and the provinces. It is not an electoral or banking regulatory body.
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About Public Finance
Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.
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