Hbc2205:Financial Management In Public Sector Question Paper
Hbc2205:Financial Management In Public Sector
Course:Bachelor Of Commerce
Institution: Meru University Of Science And Technology question papers
Exam Year:2011
QUESTION ONE (25 MARKS)
a. In the context of government finance, define a budget and highlight the principles of a good budget. (7 Marks) b. Explain the functions of a public budget and its Components (6 Marks) c. Various attempts have been made in the public sector to achieve a more stable longterm planning and budgeting with more emphasis on flexibility, in contrast to the traditional annual increment budgeting approach. i. Explain the deficiencies of the traditional approach to planning and budgeting (4 Marks) ii. Give an illustration of how planning programming budgeting system (PPBS) could be drawn up in reflect of one sector of public authority activity (5 Marks) iii. Highlight some of the problems which have made it difficult in practice to fully implement planning programming budgeting system (PPBS) in Kenya. (3Marks)
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QUESTION TWO (15 MARKS)
a. Explain clearly, the role played by the following offices/institutions in the control and management of government finance in Kenya. i. The Treasury (5 Marks) ii. Controller of the Budget (3 Marks) iii. Auditor General (3 Marks) iv. The Parliament (4 Marks)
QUESTSION THREE (20 MARKS)
a. Highlight and explain, clearly the component, the uses and nature of the following funds, in the context of government finance. i. The consolidated fund (3 Marks) ii. Equalization fund (3 Marks) iii. Contingency fund (3 Marks) iv. Revenue fund (3 Marks) b. Distinguish between a. Domestic public debt and external public debt. (4 Marks) b. Short term public debt and long term public debt (4 Marks)
QUESTION FOUR (10 MARKS)
a. The following are extracts from a local daily release i. In May 2011, residents of Nyasiongo and Daraja mbili in Kisii made demonstrations, blocking main tarmac road, protesting against increased insecurity in the area. ii. In June 2011, residents of Kiambu Town, mainly women demonstrated against rampant brewing and drinking of illicit alcohol that has made many men die and unproductive. iii. In July 2011, residents of Mombasa held demonstrations, against rampant increases of garbage in Mombasa Town/city streets and roads. iv. September 2011, teachers (KNUT) down tools against government delay in employing more teachers on permanent terms.
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v. October 2011, residents of Samburu held demonstrations after a boy looking after cattle was injured upon stepping on life bomb that exploded immediately. Kenya armed forces wage war against Al-shabab, a terrorist organization that was attacking trade ships and tourists destined to Kenya. vi. November 2011, Medics threaten to down their tools to protest against poor pay and poor working conditions in public hospitals and dispensaries.
From the above counts of public events, explain and highlight,
i. Why economies and populations need the public sector. (6 Marks) ii. The problems of increasing huge public debt in Kenya (4 Marks)
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