Which statement accurately describes the borrowing authority of local self-government institutions?

State of Local Govt MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Subject
State of Local Govtpolitical-science-mcqs › state-of-local-govt
Published
13 Jun 2022
Last updated
28 May 2026

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Explanation

Local self-government bodies do not have the independent authority to raise loans; they must obtain approval from the state government before borrowing funds. They cannot issue loans on their own, nor do they require central government permission for this purpose.

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