CHP#2 Flashcards
Q:1 FEDERAL CONSOLIDATED FUND?
1:ALL REVENUES RECEIVED/ LOANS RAISED BY THE FEDERAL GOVERNMENT
AND
2:AMOUNT RECEIVED IN REPAYMENT OF LOAN
SHALL BE CREDITED TO THE FEDERAL CONSOLIDATED FUND
PUBLIC ACCOUNT
ALL OTHER MONEYS
1: RECEIVED BY THE FEDERAL GOVERNMENT OR
2: DEPOSITED WITH THE SUPREME COURT /ANY OTHER COURT
SHALL BE CREDITED TO THE PUBLIC ACCOUNT OF THE FEDERATION
CUSTODY OF FEDERAL CONSOLIDATED FUND AND PUBLIC ACCOUNT?
THE CUSTODY OF FEDERAL CONSOLIDATED FUND AND PUBLIC ACCOUNT OF THE FEDERATION
THE PAYMENT AND WITHDRAWAL FROM THE FUNDS
ALL OTHER CONNECTED MATTERS
SHALL BE REGULATED BY ACT OF MAJLISE-E-SHOORA (PARLIAMENT )
OR RULES MADE BY PRESIDENT
ANNUAL BUDGETSTATEMENT?
1: In each financial year, the Federal Government shall lay before the National Assembly a statement of the estimated receipts and expenditures of the Government. It will be called as Annual Budget Statement.
The Annual Budget Statement shall show separately.
(a) amounts required to meet expenses charged by Constitution on Federal Consolidated Fund;
(b) amounts required to meet other expenses proposed to be made from Federal Consolidated Fund; and shall distinguish between revenue expenses and other expenses.
Expenditure charged upon Federal Consolidated Fund [81]?
The following expenditures shall be charged upon the Federal Consolidated Fund:-
(a) the remuneration of President and other expenses of his office, and the remuneration of-
(i) the Judges of the Supreme Court and the Islamabad High Court;
(ii) the Chief Election Commissioner;
(iii) the Chairman and the Deputy Chairman;
(iv) the Speaker and the Deputy Speaker of the National Assembly:
(v) the Auditor-General;
(b) The admin expenses including 1:the remuneration of officers and 2:servants of Supreme Court, the 3:Islamabad High Court,
4: the department of the Auditor-General,
5:the Office of the Chief Election Commissioner
and the
6:Secretariats of the Senate and the National Assembly.
(c) Debt charges of the Federal Government, including interest, the repayment of capital, and other expenses raising loans, and redemption of debt on the security of Federal Consolidated Fund;
(d) amount paid for any judgment/order against Pakistan by any court or tribunal; and
(e) any other amount declared by the Constitution or by Act of Majlis-e- Shoora (Parliament).
Procedure relating to Annual Budget Statement [82]
(1)
Expenses charged on Federal Consolidated Fund in Annual Budget Statement shall be discussed in National Assembly. A voting will not be required.
(2) Other expenses in Annual Budget Statement shall be submitted to National Assembly for raising grant.”
Assembly may or may not agree to demand. It may also reduce the demand.
(3)The demand can only be made with recommendation of Federal Government.
Authentication of schedule of authorised expenditure [83]
(1)The Prime Minister shall sign a schedule specifying-
(a) the grants made by the National Assembly (under Article 82), and (b) amounts required for expenses charged on the Federal Consolidated Fund. It shall not exceed the amount mentioned in statement previously laid before the National Assembly.
(2)The authenticated schedule (as above) shall be laid before National Assembly. It shall not be open for discussion or vote.
(3) An expense from Federal Consolidated Fund shall be considered as authorized when above procedure is followed.
Supplementary and excess grants [84]
If in a financial year it is found-
(a) that authorized expense for a service is insufficient, or expense for a new service is required which is not included in the Annual Budget Statement; or
(b) that amount spent on any service exceeds the amount granted;
the Federal Government can authorize expenditure from the Federal Consolidated Fund. For this, Federal Government shall lay before National Assembly a Supplementary or Excess Budget Statement.
Votes on account [85]
The National Assembly can make grant in advance of estimated expenditure for a part of financial year, not more
than 4 months,
if the authentication of schedule is pending (in accordance with the provisions of Article 83).
Secretariats of Majlis-e-Shoora (Parliament) [87]
(1) Each House shall have a separate Secretariat:
However posts common to both Houses can be awarded.
(2) Majlis-e-Shoora (Parliament) may regulate recruitment of persons appointed to the Secretarial staff of both Houses .
(3) The Speaker or the Chairman may, with the approval of the President, make rules regulating the recruitment of persons appointed to the secretarial staff of both Houses.
Finance Committees [88]
(1) The expenditure of the National Assembly and Senate shall be controlled by the National Assembly
Senate acting on the advice of its Finance Committee.
(2) The Finance Committee shall consist of the Speaker or the Chairman, the Minister of Finance and other
members elected by the National Assembly or the Senate.
(3) The Finance Committee may make rules for regulating its procedure.
DISTRIBUTION OF REVENUES BETWEEN FEDERATION AND PROVINCES
National Finance Commission [160]
Constitution of NFC Who may be member of NFC ?
The President shall, at intervals not exceeding 5 years, constitute a National Finance Commission consisting of:
1.the Minister of Finance of the Federal Government,
2.the Ministers of Finance of the Provincial Governments, and
3.such persons as appointed by President after consultation with Governors of the Provinces.
Duties of NFC?
It shall be the duty of the National Finance Commission to make recommendations to President regarding
(a) the distribution of tax receipts between the Federation and the Provinces (as in clause (3));
(b) the making of grants-in-aid by the Federal Government to the Provincial Governments;
(c) the exercise by the Federal Government and the Provincial Governments of the borrowing power; and
(d) any other finance matter referred by the President.
Taxes raised by Parliament ?
The taxes (referred to in paragraph (a) of clause (2)) raised under authority of Majlis-e-Shoora (Parliament) are as follows:
(1) taxes on income, including corporation tax, but not including taxes on income consisting of remuneration paid out of the Federal Consolidated Fund;
(2)taxes on sales and purchases of goods imported, exported, manufactured or consumed;
(3) export duties on cotton, and such other export duties as specified by the President;
(4) such duties as specified by the President; and
(5) such other taxes as specified by the President.
(3A) The share of the Provinces in each Award (recommendation) of National Finance Commission
shall not be Iess than the share in the previous Award.
(3B) The Federal Finance Minister and Provincial Finance Ministers shall monitor the implementation of the Award biannaully and lay their reports before both Houses of Majlis-e-Shoora (Parliament) and Provincial Assemblies
Order by President?
On the basis of recommendation of the National Finance Commission, the President shall, specify:
1.the share of the tax receipts which is to be allocated to each Province and
2.that share shall be paid to the Government of the Province concerned,
3.share shall not form part of the Federal Consolidated Fund.
and,
5.The recommendations of the National Finance Commission shall be laid before both Houses and the provincial Assemblies.
- Before any order regarding share of tax receipts (under clause (4)) the President may, make such
amendments in the law relating to the distribution of revenues between the Federal Government and the Provincial Governments as he considers necessary.
7.The President may, by order, make grants-in-aid to the Provinces in need of assistance and such grants shall be charged upon the Federal Consolidated Fund.
