Prepared by STT – SIR TARIQ TUNIO

Chapter

CONTITUTIONAL
PROVISIONS
CHAPTER SYNOPSIS
TOPIC ARTICLE
Federal Consolidated Fund and Public
78,79 & 81
Account of Federation
Federal Budget 80, 82 & 83
Grants/Expenditure While Federal Budget
85-86
is Pending
Supplementary/Excess Grants 84
Secretariats of Parliaments 87-88
Provincial Consolidated Fund/Public
118, 119 & 121
Account of Provinces
Provincial Budget 120, 122 & 123
Grants/Expenditure While Provincial Budget
125-126
is Pending
Supplementary/Excess Grants 124
Provisions relating to NA etc to Apply to PA 127
National Finance Commission (NFC) 160
Natural Gas & Hydro-electric Power 161
Prior Sanction of President to Bill affecting
162
Taxation wherein Provinces have Interest
Provincial Taxes in respect of Professions
163
etc
Grants out of Consolidated Fund 164
Exemption of Govt from Taxation 165-165A
Part I, 4th
Federal Legislative List
Schedule 1
ICAP Past Papers Questions
 Tariq Hussain Tunio

Chart# 1► Federal Consolidated Fund & Public Account of Federation

Amounts forming part of Federal Consolidated Fund

(1) All revenues (2) All loans raised by (3) All moneys received
received by the Federal the Federal by Federal Government
Government Government in repayment of loans

Custody, etc., of
Federal Consolidated
FEDERAL CONSOLIDATED FUND Fund and Public
Account:

The following shall be

regulated by an Act of
The expenditures to be charged upon the Federal Consolidated Fund Parliament or, until
provision in that
behalf is so made, by
The remuneration The administrative All debt charges for Any sums rules made by the
payable to: expenses, including which the Federal required to satisfy President:
remuneration to Government is any judgment,
▪ President & other officers and servants liable, including decree or award
expenditure of: interest, sinking against Pakistan
▪ the custody of the
relating to his fund charges, the by any court or Federal
office, ▪ Supreme Court, & repayment or tribunal Consolidated Fund,
▪ Judges of SCP & the Islamabad amortisation of
Islamabad High High Court, capital, and other
Court; ▪ Office of the Chief expenditure in
▪ the payment of
▪ Chief Election Election connection with the moneys into that
Commissioner, Commissioner raising of Fund,
▪ Chairman & and the Election loans,and the
Deputy Commission service and Any other sums
Chairman, ▪ Secretariats of redemption of debt declared by the ▪ the withdrawal of
▪ Speaker and Senate and on the security of Constitution or by moneys therefrom,
Deputy Speaker National the Federal Act of Majlis-e-
of National Assembly Consolidated Fund Shoora ▪ the custody of other
Assembly, ▪ department of the (Parliament) to be
▪ Auditor-General. Auditor-General, so charged moneys received by
or on behalf of the
Federal
Government,

Amounts to be Credited in the Public Account of the Federation ▪ their payment into,
and withdrawal
(1) All other moneys (2) All other moneys (3) All other moneys received from, the Public
received by or on behalf of received by or deposited by or deposited other court
the Fed. Govt. with the Supreme Court established under the Account of the
authority of the Federation Federation, and

▪ all matters
connected with or
PUBLIC ACCOUNT OF FEDERATION ancillary to the
matters aforesaid.
(Article 79)

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 Tariq Hussain Tunio

Chart# 2► Annual Budget Statement

FED. GOVT

presents annually regarding estimated ➢showing separately

before NA a ANNUAL BUDGET ✓sums required to
revenues &
statement called STATEMENT meet expenditure
expenditure of FG
described by
Constitution as
expenditure
Procedure charged upon FCF,
and ✓other
expenditure
proposed to be
made from FCF
Expenditure charged Other expenditure is ➢distinguishing
upon FCF may be submitted before NA in expenditure on
discussed in NA but the form of demands revenue account
not submitted to vote for grants from other
expenditure.

National Assembly
has the power to

assent to the refuse to assent to the assent to demand for

demand for grants demand for grants grants with reduction of
amount specified in it

For a period of 10 years Schedule of Authorized Specifying:

from 'commencing day'
Expenditure ▪ grants made or
or holding of 2nd general deemed to have
election of NA, whichever been made by the
is later, a demand is National Assembly
deemed to assented
is authenticate by the Prime ▪ several sums
without reduction unless required to meet
it is Minister by his signature
the expenditure
▪ refused or charged upon FCF
▪ assented to with ▪ but not exceeding
reduction of the the sum shown in
amount specified in Schedule authenticated by PM
is laid before NA but is not open the statement
it previously laid
▪ by majority votes of to discussion or vote
before the
the total members of National
NA. Assembly.

No expenditure from FCF shall be

deemed to be duly authorized
unless
▪ it is specified in the schedule so
authenticated and
▪ such schedule is laid before the
National Assembly

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 Tariq Hussain Tunio

Chart# 3► Grant/Expenditure While Budget Procedure is Pending

While completion of the procedure of voting for grant

(as prescribed Art. 82) and authentication of Schedule
of authorized expenditure (Art. 83) are PENDING

NATIONAL If National Assembly

ASSEMBLY stands dissolved

has power to make FEDERAL

grant in advance GOVERNMENT

in respect of estimated may authorize

expenditure expenditure from FCF

for a period not in respect of estimated

exceeding 4 months expenditure

for a period not

exceeding 4 months

Chart# 4► Supplementary/Excess Budget Statement

Amount authorized to be
expended for a particular
service for the current
financial year is insufficient
A need has arisen for
expenditure upon some new
service not included in
Annual Budget Statement for
current year
Any money has been spent on
any service during a financial
year in excess of the amount
granted for that service for
current year

FG has the power to authorize these expenditures from

FCF, whether charged on FCF or not

FG is required lay before NA a Supplementary Budget

Statement or an Excess Budget Statement setting
out the amount of that expenditure

The provisions of Articles 80 to 83 shall apply to

Supplementary Budget Statement/ Excess Budget
Statement as they apply to the Annual Budget
Statement

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Chart# 5► Supplementary/Excess Budget Statement
Expenditure of NA &
Senate is controlled by NA
or Senate
acting on the advice of its
Finance Committee (FC)
Composition of FC
▪ Speaker,
▪ Chairman,
▪ Finance Minister and
▪ other members elected
by NA or Senate.
Finance Committee may
make rules for
regulating its procedure
Tariq Hussain Tunio
PARLIAMENT
The Parliament may reg- Each House shall have a
ulate by law recruitment separate Secretariat
& conditions of service
of persons appointed to
Secretarial staff of Creation of posts
Senate & NA common to both Houses
is also permitted
Until this law is made, Speaker
or Chairman may make, with the
approval of the President, rules
regulating recruitment &
conditions of service of persons
appointed to the secretarial staff
of NA or Senate
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 Tariq Hussain Tunio

Chart# 6► Provincial Consolidated Fund & Public Account of Provinces

Amounts forming part of Provincial Consolidated Fund

(1) All revenues (2) All loans raised by (3) All moneys received
received by the the Provincial by Provincial Govt in
Provincial Government Government repayment of loans

Custody, etc., of
Provincial
PROVINCIAL CONSOLIDATED FUND Consolidated Fund
and Public Account:

The following shall be

regulated by an Act of
The expenditures to be charged upon the Provincial Consolidated Fund Provincial Assembly
or, until provision in
that behalf is so
The remuneration The administrative All debt charges for Any sums made, by rules made
payable to: expenses, including which the Federal required to satisfy by the Governor:
remuneration to Government is any judgment,
▪ the Governor and officers and servants liable, including decree or award
other expenditure of: interest, sinking against the
▪ the custody of the
relating to his fund charges, the Province by any Provincail
office, ▪ High Court and repayment or court or tribunal Consolidated Fund,
amortisation of
▪ the Judges of the capital, and other
High Court; and
▪ the Secretariat of
expenditure in
▪ the payment of
the Provincial moneys into that
connection with the
Assembly
▪ the Speaker and raising of loans, Fund,
Deputy Speaker and the service
of the Provincial and redemption of Any other sums
Assembly debt on the declared by the ▪ the withdrawal of
security of the Constitution or by moneys therefrom,
Provincial Act of Provincial
Consolidated Fund Assembly to be so ▪ the custody of other
charged
moneys received by
or on behalf of the
Provincial
Government,

Amounts to be Credited in the Public Account of the Province ▪ their payment into,
and withdrawal
(1) All other moneys (2) All other moneys (3) All other moneys received from, the Public
received by or on behalf of received by or deposited by or deposited other court
the Provincial. Govt. with the HC established under the Account of the
authority of the Province Province, and

▪ all matters
connected with or
PUBLIC ACCOUNT OF PROVINCE ancillary to the
matters aforesaid.
(Article 119)

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 Tariq Hussain Tunio

Chart# 7► Annual Budget Statement

PROVINCIAL. GOVT

presents annually regarding estimated ➢showing separately

before PA a ANNUAL BUDGET revenues & ✓sums required to
statement called STATEMENT meet expenditure
expenditure of PG
described by
Constitution as
expenditure
Procedure charged upon PCF,
and
✓other expenditure
proposed to be
made from PCF
Expenditure charged Other expenditure is ➢distinguishing
upon PCF may be submitted before PA in expenditure on
discussed in PA but the form of demands revenue account
not submitted to vote for grants from other
expenditure.

Provincial Assembly
has the power to

assent to the refuse to assent to the assent to demand for

demand for grants demand for grants grants with reduction of
amount specified in it

Schedule of Authorized Specifying:

Expenditure ▪ grants made or
deemed to have
been made by the
Provincial
is authenticate by the Chief Assembly
▪ several sums
Minister by his signature
required to meet
the expenditure
charged upon PCF
Schedule authenticated by CM ▪ but not exceeding
is laid before PA but is not open the sum shown in
to discussion or vote the statement
previously laid
before the
Provincial
Assembly.
No expenditure from PCF shall be
deemed to be duly authorized
unless
▪ it is specified in the schedule so
authenticated and
▪ such schedule is laid before the
Provincial Assembly

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 Tariq Hussain Tunio

Chart# 8► Grant/Expenditure While Budget Procedure is Pending

While completion of the procedure of voting for grant

(as prescribed Art. 122) and authentication of Schedule
of authorized expenditure (Art. 123) are PENDING

PROVINCIAL If PA stands
ASSEMBLY dissolved

has power to make PROVINCIAL

grant in advance GOVERNMENT

in respect of estimated may authorize

expenditure expenditure from PCF

for a period not in respect of estimated

exceeding 4 months expenditure

for a period not

exceeding 4 months

Chart# 9► Provincial Supplementary/Excess Budget Statement

Amount authorized to be
expended for a particular
service for the current
financial year is insufficient
A need has arisen for
expenditure upon some new
service not included in
Annual Budget Statement for
current year
Any money has been spent on
any service during a financial
year in excess of the amount
granted for that service for
current year

PG has the power to authorize these expenditures from

PCF, whether charged by Constitution on FCF or not

PG is required to lay before PA a Supplementary

Budget Statement or an Excess Budget Statement
setting out the amount of the expenditure

The provisions of Articles 120 to 122shall apply to

Supplementary Budget Statement/ Excess Budget
Statement as they apply to the Annual Budget Statement

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 Tariq Hussain Tunio

Chart# 10► National Finance Commission

The President is 6 months of

NATIONAL FINANCE after
required to within commencing day
constitute COMMISSION (NFC) that

At intervals of not
exceeding 5 years

Procedure Composition Duties Monitoring

Commission makes  Federal FM

recommendations  Provincial FMs Federal FM & Provincial FMs shall
▪ monitor the implementation of
 Other persons
the Award biannually and
appointed by ▪ lay their reports before both
President issues President after Houses of Parliament and the
'Order' consultation with Provincial Assemblies
Governors
specifying share of net
proceeds of taxes as
per recommendations Recommendations
of NFC, but share of with explanatory
province shall not be memorandum about
less than its share in action taken on it is
the previous Award
laid before both
houses of Parliament
Share of Provinces is to
be given to its 'Govt'
and is made part of
FCF. Distribution Exercise by Any other
Making of
of taxes b/w FG & PG of matter
grant-in-aid
Federation & borrowing relating to
President may make by by FG to PG
Provinces powers finance
Order grants-in-aid to
Provinces in need of conferred by referred to
assistance and such Constitution Commission
grants is charged upon by President
FCF.

Distributable Taxes
Before NFC Order,
President may make
amendments/modifica-
tions by Order in law
relating to distribution Income Tax, Sales Tax on Export duties on Duty of Other taxes
of revenues between except tax on Goods cotton & such Excise specified by
FG and PGs as he remunerations other duties specified by the
deems necessary or paid from FCF specified by the the President
expedient. President President

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 Tariq Hussain Tunio

Chart# 11► National Gas, Oil & Hydro-electric Power

NATURAL GAS OIL HYDRO-ELECTRIC POWER

Net proceeds of Net proceeds of Net profits earned by

▪ Federal excise duty on
natural gas levied at well-
head and collected by the
FG and
▪ royalty collected by FG,
▪ Federal excise duty on oil
levied at well-head and
collected by the FG
▪ F/Govt or any undertaking
established/ administered
by FG
▪ from the bulk generation of
power at a hydro-electric
station

shall be paid to:

 shall not form part of the  the Province
FCF and
 shall be paid to the
 in which the hydro-
Province in which the well- electric station is
head of oil is situated situated.

Chart# 12► Prior Sanction of President to Bills Affecting Taxation of Provincial Interest

whole or part of its net

BILL or
proceeds is assigned to
AMENDMENT any Province

it varies the meaning of

imposing/varying Tax "agricultural income" as
or Duty defined for the purpose of
income-tax law

Approval of the it affects the principles on

President which moneys are or may
be distributable to
Provinces as per any of
the provisions of the
Introduction into Constitution
National Assembly

Chart# 13► Imposition of Professional Tax by Provinces

PROVINCIAL ASSEMBLY

shall not exceed limits fixed

impose tax by Federal Act, if any

by an Act Such Act shall be regarded

as imposing a tax on income

on persons engaged in
professions, trades,
callings or employments
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 Tariq Hussain Tunio

Chart# 14► Exemption of Government from Taxation

FEDERAL GOVT PROVINCIAL GOVT GOVT CORPORATIONS

FG is not liable to PG is not liable to taxation Parliament has the power to

taxation under any Act under an Act of
Parliament or PA of any
of PA in respect of its
property or income other Province in respect
of its property or income
If trade/business is carried on
by or on behalf of PG outside
that Province the Provincial
Govt may be taxed under Act
of Parliament or PA of the
Province in which that
trade/business is carried on
in respect of any property
used in connection with that
trade/business or any
income arising from that
trade or business.
make a law to provide for the
levy and recovery of a tax on
the income of
(i) a corporation, company or
other body or institution
established by or under a
Federal law or a Provincial
law or an existing law
(ii) a corporation, company or
other body or institution
owned or controlled,
directly or indirectly, by the
Federal Government or a
Provincial Government,
 regardless of the ultimate
destination of such
income.

15.. FEDERAL LEGISLATIVE LIST (Part-I of Fourth Schedule to the Constitution)

Entry No. 43. Duties of customs, including export duties.

Entry No. 44. Duties of exercise, including duties on salt, but including duties on alcoholic
liquors, opium and other narcotics.
Entry No. 47 Taxes on income other than agricultural income;

Entry No. 48 Taxes on corporations.

Entry No. 49 Taxes on the sales and purchases of goods imported,exported, produced,
manufactured or consumed,except sales tax on services.
Entry No. 50 Taxes on the capital value of the assets, not including taxes on immovable
property.

Entry No. 51 Taxes on mineral oil, natural gas and minerals for use in generation of
nuclear energy.
Entry No. 52 Taxes and duties on the production capacity of any plant,machinery,
undertaking, establishment or installation in of the taxes and duties
specified in entries 44,47,48 and 49 or in lieu of any one or more of them.
Entry No. 53 Terminal taxes on goods or passengers carried by sea or air; taxes on their
fares and freights.

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