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System of Financial Control and Budgeting FPSC

The document outlines the System of Financial Control and Budgeting, defining financial control and budgeting while detailing their objectives, components, and types. It describes the budgeting process stages and key institutions involved, along with the legal framework governing these processes. Additionally, it includes important multiple-choice questions related to financial control and budgeting for test preparation.

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Farhan
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1K views3 pages

System of Financial Control and Budgeting FPSC

The document outlines the System of Financial Control and Budgeting, defining financial control and budgeting while detailing their objectives, components, and types. It describes the budgeting process stages and key institutions involved, along with the legal framework governing these processes. Additionally, it includes important multiple-choice questions related to financial control and budgeting for test preparation.

Uploaded by

Farhan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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System of Financial Control and Budgeting

System of Financial Control and Budgeting

1. Definition

Financial Control: A process that ensures financial activities follow approved budgets and policies.

Budgeting: The process of preparing a financial plan for a fiscal year.

2. Objectives of Financial Control

- Efficient use of public money

- Prevention of waste and fraud

- Accountability and transparency

- Ensure spending as per plan

- Maintain fiscal discipline

3. Components of Financial Control System

- Budgeting: Planning income and expenditure

- Accounting: Recording transactions

- Auditing: Checking records

- Reporting: Presenting financial data

- Internal Control: Preventing fraud

- Expenditure Control: Monitoring spending

- Cash Management: Managing cash flows

4. Types of Budgets

- Line-Item Budget

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System of Financial Control and Budgeting

- Performance Budget

- Zero-Based Budget

- Program Budget

5. Budgeting Process Stages

- Preparation

- Approval

- Execution

- Audit

6. Key Institutions

- Ministry of Finance

- Auditor General of Pakistan

- Public Accounts Committee (PAC)

- Controller General of Accounts (CGA)

- Federal Board of Revenue (FBR)

7. Legal Framework

- Constitution Articles (78-84)

- General Financial Rules

- Budget Manual

- Treasury Rules

- Audit Code

8. Important MCQs (with answers)

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System of Financial Control and Budgeting

1. Main objective of financial control: Fiscal Discipline

2. Auditor of govt expenditure: Auditor General of Pakistan

3. Performance budget focuses on: Results

4. Zero-Based Budgeting means: Justifies all expenses from zero

5. CGA reports to: Ministry of Finance

6. PAC stands for: Public Accounts Committee

7. Treasury rules are part of: Financial Control

8. Budget articles in Constitution: 78 to 84

9. Final authority of budget: Parliament

10. Fiscal year in Pakistan: 1st July

Prepared for FPSC Test Preparation - 2025

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