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Hbc 2224: Finance Management In The Public Sector Question Paper

Hbc 2224: Finance Management In The Public Sector

Course:Bachelor Of Commerce

Institution: Meru University Of Science And Technology question papers

Exam Year:2012

University Examinations 2012/2013

THIRD YEAR, SECOND SEMESTER EXAMINATIONS FOR THE DEGREE OF
BACHELOR OF COMMERCE

HBC 2224: FINANCE MANAGEMENT IN THE PUBLIC SECTOR

AUGUST 2012 TIME: 2 HOURS

INSTRUCTIONS: Answer ALL the Questions

QUESTION ONE (25 MARKS)

In his budget on 14/6/2012, the Kenyan Minister for Finance presented to Parliament a Shs. 1.4 trillion budget aimed at improving and providing better services to the citizens/people of Kenya.
(a) Explain the functions of a public budget. (5Marks)
(b) Clearly and in details highlight the principles of a good public budget . (5Marks)
(c) Compare the merits and demerits of zero based budgeting approach to the
traditional/incremental approach to budgeting of public finances. (8Marks)
(d) Highlight with examples the key challenges facing public authorities in preparing and implementing budgetary programmes/policies in Africa. (5Marks)
(e) Highlight merits of Government Issue of Bonds and Treasury bills for budgetary support.What are the demerits? (2marks)

QUESTION TWO (15 MARKS)

(a) Distinguish clearly and in details the difference between financial management in the public sector and in the private sector. (4Marks)
(b) Highlight clearly why the need for the Public Sector and its importance to National Development and Growth. (3Marks)
(c) Explain the meaning of the following funds set up by government:
(i) Trust Funds (ii) Sinking Funds (iii) Revolving Funds
(iv) Capital Project Funds (2Marks each)

QUESTION THREE (15 MARKS)

In the recent past, the government of Kenya has been seeking and devising ways and means of financing the budget.
(a) Highlight the various sources of government Revenue clearly and with examples.(4Marks)
(b) Explain the difference between non discretionary expenditure and discretionary expenditures. (2Marks)
(c) Distinguish between
(i) Taxes and user charges. (2Marks)
(ii)Direct taxes and indirect taxes (2Marks)
(d) Clearly explain the difference between domestic public debt and external public debt.
(2Marks)
(e) Highlight the risks associated with a huge public debt to a country. (3Marks)

QUESTION FOUR (15 MARKS)

Explain the roles of the following institutions and offices in the management and control public finances in Kenya.
(a) Kenya Revenue Authority (2Marks)
(b) Central Bank of Kenya (2Marks)
(c) Treasury (2Marks)
(d) Commission of Revenue Allocation (2Marks)
(e) Controller of the Budget (2Marks)
(f) Auditor General (2Marks)
(g) The Parliament. (3Marks)

Hbc 2224: Finance Management In The Public Sector Question Paper

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