Dibrugarh University B.Com Fifth Sem: PUBLIC FINANCE Question Papers (Nov' 2018)

Dibrugarh University - B.com 5th Sem
Public Finance Question Papers
2018 (November)
Commerce (General/Speciality)
Course: 501
Full Marks: 80
Full Marks: 32
Time: 3 hours

1. (a) Fill in the blanks:     1x4=4

1)         Public finance deals with income, expenditure and borrowings of the government institutions.

2)         The finance ministry possesses the expert knowledge in finance matters.

3)         Every tax is an additional burden on the tax-payer (people).

4)         Public expenditure is more important than private expenditure.

(b) Answer the following questions directly:         1x4=4

1)      What is public finance?

Ans: Public finance is a study of income and expenditure or receipt and payment of government. It deals the income raised through revenue and expenditure spend on the activities of the community and the terms ‘finance’ is money resource i.e. coins.

2)      Mention one objective of budget.

Ans: Estimation of public expenditure

3)      What do you mean by public revenue?

Ans: A government needs income for the performance of a variety of functions and meeting its expenditure. Thus, the income of the government through all sources like taxes, borrowings, fees, and donations etc. is called public revenue or public income.

4)      What is private expenditure?

Ans: Expenditure incurred by an individual to satisfy his personal want such as health, food, education etc is called private expenditure.

2. Write short notes on:            4x4=16

a)         Private finance.

b)         Performance Budget.

c)          Tax Revenue.

d)         Significance of Public Expenditure.

3. (a) Discuss about the scope of public finance. State about its relations with Economics, Political Science and Statistics 5+3+3+3=14

Or

(b) Explain the theory of ‘principle of maximum social advantage’ with the help of diagram. State its practical problems. 10+4=14

4. (a) What is Financial Administration? Briefly analyze the various instruments of financial administration.         4+10=14

Or

(b) What do you mean by zero-base budgeting? What are its features? Discuss the main benefits of zero-base budgeting. 3+4+7=14

5. (a) Discuss about the various sources of public revenue. How is public revenue important in economic development? 8+6=14

Or

(b) Distinguish between Progressive and Proportional Taxation. Discuss the merits and demerits of each of them. 6+4+4=140

6. (a) Discuss about the various aims and objectives of public expenditure as classified by Prof. Dalton. Mention about the effects of public expenditure on production and distribution.                     6+4+4=14

Or

(b) Discuss about the various ways in which public expenditure can achieve economic development in the developing countries.            14

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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

Time: 3 hours

1. Answer the following as directed:             1x8=8

a)      What is private finance?

Ans: By private finance, we mean the study of the income, debt and expenditure of an individual or a private company or business venture.

b)      Which is the best system of public finance?

Ans: The best system of public finance is that which secures the maximum social advantage.

c)       What is budget?

Ans: A budget is an annual financial statement showing item wise estimates of expected revenue and anticipated expenditure during a fiscal year.

d)      In zero-base budgeting, every year is taken as a new year. (Write True or False)

Ans:  True

e)      What is public revenue?

Ans: A government needs income for the performance of a variety of functions and meeting its expenditure. Thus, the income of the government through all sources like taxes, borrowings, fees, and donations etc. is called public revenue or public income.

f)       Mention one distinction between tax and fees.

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

g)      Public expenditure is more important than private expenditure. (Fill in the blank)

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)         Scope of public finance.

b)         Elements of budget.

c)          Tax and non-tax revenue.

d)         Internal public debt.

e)         Functions of Gram Panchayat.

3. (a) Define public finance. Discuss the role of public finance as a tool of economic and social welfare.  3+9=12

Or

(b) “The best system of public finance is that which secures the maximum social advantage.” Discuss the statement.     12

4. (a) What are the main instruments of financial administration? Discuss each of them in brief.  11

Or

(b) What are the pre-conditions of zero-base budgeting? Discuss the merits and demerits of zero-base budgeting. 3+4+4=11

5. (a) Explain the following:   5.5+5.5 =11

1)         Adam Smith’s classification of public revenue.

2)         Prof. Dalton’s classification of public revenue.

Or

(b) Discuss about the features of tax system of our country. Also write a brief note on Adam Smith’s canon of equality. 7+4=11

6. (a) Mention the similarities between Public Expenditure and Private Expenditure. Also explain the ability to pay theory of Prof. Pigou.  4+7=11

Or

(b) What are the principles of public expenditure? Which of these do you prefer?       8+3=11

7. (a) Write a note on Union and State Financial Relations.       11

Or

(b) What are the main sources of revenue of Municipal Corporation? What are the welfare activities where these revenues are spent? Discuss.   5+6=11