Get premium membership and access revision papers, questions with answers as well as video lessons.

Cfm 307: Public Sector Finance Question Paper

Cfm 307: Public Sector Finance

Course:Bachelor Of Commerce

Institution: Kca University question papers

Exam Year:2009

1
UNIVERSITY EXAMINATIONS: 2008/2009
THIRD YEAR STAGE II EXAMINATION FOR THE DEGREE OF
BACHELOR OF COMMERCE
CFM 307: PUBLIC SECTOR FINANCE
DATE: APRIL 2009 TIME: 2 HOURS
INSTRUCTIONS: Answer question ONE and any other TWO questions
QUESTION ONE
(a) Countries like Kenya have to borrow externally even if it does not have deficit balance. Discuss.
(8 Marks)
(b) Government purchases of goods and services for its present use and the creation of future benefits,
as well as expenditures involving the purchase of goods and services is of immense importance.
Analyze the above statement, based on economist’s justification for government expenditure.
(8 Marks)
(c) Enumerate exhaustively the various options available for paying off a public debt (8 Marks)
(d) Write brief notes on commitment accounting. (6 Marks)
QUESTION TWO
(a) Budget is an economic, planning, political and social document. It is a financial workplan
covering specific period of time outlining resources, activities and expenditures. Give your views,
as to why budgets are instruments. (8 Marks)
(b) Give reasons to justify a doubling of government spending from previous budget allocations, on
the general welfare of its citizens. (6 Marks)
(c) For any economy to develop the government has to impose various types of taxes. Discuss.
(6 Marks)
2
QUESTION THREE
(a) Public expenditure entails the use of revenues collected on worthy courses. Discuss the effects of
public expenditure. (6 Marks)
(b) Public borrowing amounts to a national debt. Give an account of the different types of public debt.
(6 Marks)
(c) Support the statement that ‘tax is a necessary evil’. (8 Marks)
QUESTION FOUR
(a) Most developing countries experience government failures in carrying out activities concerned
with running of a state for the purpose of producing value for its citizens. Enumerate the reasons
behind such scenarios. (6 Marks)
(b)
(i) Define fiscal policy (1 Mark)
(ii) Explain the role played by fiscal policy in a developing economy (8 Marks)
(c) According to PPBS, decisions should be on explicit criteria, at national interest. List and explain
the guidelines of PPBS. (5 Marks)

Cfm 307: Public Sector Finance Question Paper

More Question Papers

Popular Exams