Dibrugarh University Question Papers: Public Finance' 2017

Dibrugarh University - B.com 5th Sem
Public Finance Question Papers
2017 (November)
Commerce (General/Speciality)
Course: 501
Full Marks: 80
Full Marks: 32
Time: 3 hours

1.        (a) Write True or False:                                         1x4=4

(i) Public Finance is a study of income and expenditure of a Government.             True

(ii) Financial administration focuses on the procedure which ensures the lawful use of private funds.      False

(iii) Taxation is the major source of public revenue.          True

(iv) Public expenditure is the expenditure incurred by public authorities.       True

(b) Fill in the blanks:             1x4=4

(i)Public Expenditure stability is the basic condition for economic stability.

(ii) Zero-base budgeting technique was first used in America in the year 1969 (Texas).

(iii) Taxes are paid by an individual though they may be levied upon individuals, property or commodities.

(iv) A. C. Pigou developed the theory of ‘Ability to Pay’.

2.       Write short notes on:                                             4x4=16

(a)    Keynes’s theory of public finance.

(b)   Functions of the Finance Ministry.

(c)    Tax and non-tax revenue.

(d)   Scope of public expenditure.

 3.       (a) Discuss the importance of public finance in modern times. Also distinguish between public finance and private finance.                8+6=14

Or

(b) Critically explain the ‘principle of maximum social advantage’.

 4.       (a) What do you understand by ‘financial administration’? Briefly analyze the principles of financial administration.  3+11=14

Or

(b) What is ‘budgetary control’? Discuss the techniques of budgetary control.                    2+12=14

 5.       (a) What is ‘public revenue’? Discuss the effects of public revenue on the following: 2+(4+4+4)=14

(i) Revenue (Direct and Indirect)

(ii) Tax Distribution

(iii) Present and future generation

Or

(b) What do you mean by ‘cannons of taxation’? State and explain Adam Smiths’s cannons of taxation.   2+12=14

 

6.       (a) “The concept of public expenditure plays a very important role in public finance.” Discuss this statement. Also distinguish between  public expenditure and private expenditure.           10+4=14

Or

(b) Briefly explain the following:                               7+7=14

(a) Public Expenditure and Economic Stability.

(b) Public Expenditure and Economic Growth.

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Also Read:

1. Public Finance Notes

2. Public Finance Question Papers (Dibrugarh University)

3. Public Finance Solved Question Papers (Dibrugarh University)

4. Public Finance MCQs

5. Public Finance Important Questions for Upcoming Exam

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(Old Course)

Full Marks: 80

Pass Marks: 32

1.       Answer the following questions:                      1x8=8

(a)    What do you mean by ‘finance’?

Ans: Finance is defined as the management of money and includes activities like investing, borrowing, lending, budgeting, saving, and forecasting by the government.

(b)   Who developed the theory ‘principal of maximum social advantage’?

Ans: Hugh Dalton

(c)    What is the full form of CAG?

Ans: Comptroller and Auditor General of India

(d)   What is ZBB?

Ans: Zero Base Budgeting is a new technique for the preparation of budgets. It involves fresh evaluation of every item of expenditure as if it were a new item. It is reconsideration of each item of expenditure from the very beginning.

(e)   Mention any one distinction between ‘tax’ and ‘fees’.

Ans: Tax is a compulsory payment to the government, whereas fees are a voluntary payment to the government.

(f)     What is ‘indirect tax’?

Ans: Indirect taxes are those which are imposed on all the goods and services, and not on incomes and profits. Such taxes are collected by the sellers or service provider from their customers. Since consumers are not paying taxes directly to the government, that is why it is called indirect taxes. Example of indirect taxes: Goods and services tax.

(g)    Mention any one similarity between Public Expenditure and Private Expenditure.

Ans: Both the individual and government try to obtain maximum satisfaction out of the expenditure.

(h)   What is ‘deficit financing’?

Ans: Deficit Financing: Deficit means an excess of public expenditure over public revenue. This excess may be met by borrowings from the market, borrowings from abroad, by the central bank creating currency. In case of borrowing from abroad, there cannot be compulsion for the lenders, but in case of internal borrowings there may be compulsion.

2.       Write short notes on (any four):                       4x4=16

(a)    Public Finance – as a positive science.

(b)   Performance Budget.

(c)    Taxable Capacity.

(d)   Scope of Public Expenditure.

(e)   Finance Commission (Recent).

 

3.       (a) What is ‘public finance’? Discuss the role of public finance as a tool of economic and social welfare.   2+10=12

Or

(b) Explain the theory of ‘principle of maximum social advantage’ with the help of diagram. State its practical problems.

 

4.       (a) What is ‘financial administration’? What are the guiding principles for the operation of financial administration? Discuss about four ingredients of financial administration.         2+3+6=11

Or

(b) Discuss about the main features of ‘zero-based budgeting’. Also mention about the various steps involved in zero-based budgeting.      6+5=11

 

5.       (a) Describe various sources of Public Revenue. What in your opinion can be the best classification of the sources of Public Revenue?           8+3=11

Or

(b) “Tax is an important tool in the development of a country like India.” Discuss.      11

 

6.       (a) Discuss about the various aims and objectives of Public Expenditure as classified by Prof. Dalton. Also distinguish between Public Expenditure and Private Expenditure.                   6+5=11

Or

(b) Discuss the effects of public expenditure on production and distribution.                      6+5=11

 

7.       (a) Write a note on growth of internal and external public debt in India.          5 ½ +5 ½ =11

Or

(b) Explain the following:                              5 ½ +5 ½ =11

(i) Municipal Corporation.

(ii) Gram Panchayat.