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Public Finance (Bfi 302) Question Paper

Public Finance (Bfi 302)

Course:Bachelor Of Commerce

Institution: Pwani University question papers

Exam Year:2011

PWANI UNIVERSITY COLLEGE
A CONSTITUENT COLLEGE OF KENYATTA UNIVERSITY

UNIVERSITY EXAMINATIONS 2010/2011 ACADEMIC YEAR

3RD YEAR 2ND SEMESTER EXAMINATION FOR THE DEGREE OF
BACHELOR OF COMMERCE

COURSE CODE/TITLE: BFI 302 : PUBLIC FINANCE

END OF SEMESTER II DURATION 3HRS

DAY/TIME MONDAY: 8.00 - 11.00 AM DATE: 04/04/2011 -MW

INSTRUCTIONS

Answer COMPULSORY question ONE and any TWO questions

QUESTION ONE

As finance minister, your role is to present to parliament the Government budget fr approval and thereafter enforcement. This year's budget is Ksh.950 billion. your revenue targets based on last years targets will be ksh.600 billion. out of the budget, ksh 700 billion will be recurrent expenditure while ksh 250 billion will be development expenditure. you expect to receive ksh. 100 billion in grant in development aid from multilateral partners/institutions leaving an expected deficit of ksh.200 billion.

Required:

a) Discuss the possible sources of public revenue you expect to provide the ksh. 600 billion. (18mks)

b) Discuss public debt, measures you may employ to finance the expected deficit and the most appropriate of those measures and the reasons for public debt. (12mks)

QUESTION TWO

a) outline the main sections/divisions of public finance. (5mks)
b) Discuss the main functions of Government. (4mks)
c) Discuss tax and its main purpose. (10mks)
d) discuss the Tax Powers and rights to revenue (1mk)

QUESTION THREE

a) Discuss optimum or good tax system. (1mk)
b) Outline the objectives that a good tax system seeks to achieve. (3mks)
c) Discuss the principles or cannons of Taxation. (9mks)
d) Discuss impact of tax, Base of tax and rate of tax and the merit and demerit of direct and indirect tax. (7mks)

QUESTION FOUR

Discuss the effects of taxation on production and distribution. (20mks)

Public Finance (Bfi 302) Question Paper

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