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Public Sector Finance Question Paper

Public Sector Finance

Course:Bachelor Of Commerce

Institution: Kca University question papers

Exam Year:2010

UNIVERSITY EXAMINATIONS: 2009/2010
SECOND YEAR STAGE 2 EXAMINATION FOR THE DEGREE OF
BACHELOR OF COMMERCE
CFM 307-F PUBLIC SECTOR FINANCE (EVENING)
DATE: APRIL 2010 TIME: 2 HOURS
INSTRUCTIONS: Answer Question ONE and Any other TWO Questions
QUESTION ONE
a) Discuss the canons of taxation (6 Marks)
b) Discuss the reasons why governments levy taxes on the citizens ( 5 Marks)
c) Discuss why the government may resort to public borrowing even when it has enough funds
(6 Marks)
d) Discuss why some governments are reluctant to embrace deficit financing (5 Marks).
e) Discuss why the performance budgeting has become popular with many governments
( 8 Marks)
QUESTION TWO
a) Over the last two decades there has been attempts at restructuring the public sector by
privatizing some of its functions and even outsourcing other functions. Proponents of this
school of thought are of the opinion that the public sector may not be having a big role. Do you
think there is sufficient justification for the existence of the public sector ( 10 Marks)
b) From time to time , governments around the world resort to debt financing . discuss wheter
there are any compelling arguments that may warrant a government to use debt finance
2
QUESTION THREE
a) The value added tax has become an important source of revenue for the government of Kenya.
Discuss the merits and demerits of this form of taxation (10 Marks)
b) Discuss the merits and demerits of performance based budgets ( 10 Marks)
QUESTION FOUR
a) The government of Kenya aims to have a balanced budget by 2013. Discuss the merits and
demerits of a balanced budget. ( 10 Marks)
b) Discuss the various forms in which the public sector can be organized ( 10 Marks)
QUESTION FIVE
a) The medium term expenditure framework has been one of the key public sector reforms
implemented in sub-Saharan Africa. Discuss how a country can implement this key public
sector finance framework. ( 10 Marks)
b) Discuss whether the zero base budgeting approach as used in the private sector could also be
appropriate for use in government budgeting ( 10 Marks)

Public Sector Finance Question Paper

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