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Cfm 307 Public Sector Finance Question Paper

Cfm 307 Public Sector Finance

Course:Bachelor Of Commerce

Institution: Kca University question papers

Exam Year:2011

1
UNIVERSITY EXAMINATIONS: 2010/2011
THIRD YEAR EXAMINATION FOR THE DEGREE OF BACHELOR OF
COMMERCE
CFM 307 PUBLIC SECTOR FINANCE
DATE: DECEMBER2011 TIME: 2 HOURS
INSTRUCTIONS: Answer Question One and Any Other Two Questions
QUESTION ONE
(a) Explain the factors behind the rapid increase in Public Expenditure. (10 Marks)
(b) Highlight the key principles of public expenditure. (8 Marks)
(c) Explain the role of planning, co-ordination, communication, motivation, control and
evaluation in the budgetary process. (10 Marks)
(d) Distinguish using examples between productive and unproductive debts. (2 Marks)
QUESTION TWO
(a) Many developing countries have been facing budget deficit problems. Highlight the
problems associated with deficit financing and the precautions to be put in place in the use of
deficit financing. (10 Marks)
(b) Identify three key sources of finances to the government and explain how they can be
improved to increase government revenues. (10 Marks)
QUESTION THREE
Over a long period of time, most developing countries have persistently had to borrow thereby
increasing the public debt. Explain what has led to overreliance on external debt and the measures
that should be put in place to alleviate the problem. (20 Marks)
2
QUESTION FOUR
(a) The Public Sector Audit and restructuring has become key in the management of public
finances towards the achievement of the millennium development goals. Explain the main
objectives of the public sector restructuring. (10 Marks)
(b) Government expenditures if not well managed may lead to inflation in a country. Explain the
consequences of inflation and how this can be controlled. (10 Marks)
QUESTION FIVE
Kenya has persistently spent more than the revenues collected. Explain the measures the
government should take to increase revenue collections and to match revenues and expenditures to
avoid deficits. (20 Marks)

Cfm 307 Public Sector Finance Question Paper

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