18 Questions
What is the ultimate goal of allocating public expenditure in different lines of state activity?
To reach the highest possible indifference surface
What is the main difficulty in constructing a community indifference surface?
People cannot reveal their preference pattern
What does control of public expenditure imply?
Justification of expenditure in terms of societal welfare
What is the primary stage of expenditure control?
Budget preparation
What are the different means of control of public expenditure?
Budgetary, legislative, executive, audit, and parliamentary control
What is the purpose of controlling public expenditure?
To ensure efficient utilization of public funds
What is the purpose of a budget in the context of public expenditure?
To provide spending authorities with knowledge of public fund usage
Which theory of public expenditure is associated with Adam Smith's 'laissez-faire' philosophy?
Classical Theory of Minimum Expenditure
What is the primary goal of Lindahl's Benefit Model of Voluntary Exchange?
To determine the optimal tax share for each citizen
What is the main advantage of a well-planned budget in the context of public expenditure?
It ensures responsible allocation of public funds
Which theory of public expenditure focuses on optimizing public expenditure for maximum social welfare?
Musgrave's Optimum Budget Theory of Public Expenditure
What is the main purpose of joint cost allocation in the context of public goods provision?
To allocate the costs of public goods provision among beneficiaries
What is the primary focus of planning and implementing public expenditure according to the canon?
Achieving maximum social advantage
What is a key objective of public expenditure according to the canon?
Achieving price stability and economic growth
What is the consequence of not following the canon of economy?
Wastage of funds and misallocation of resources
What is the purpose of undertaking a cost-benefit analysis according to the canon?
To select the most beneficial investment project
What is the key principle behind the canon of economy?
Most proper utilization of resources
What are some common reasons for wasteful expenditure according to the canon?
Faulty planning, corrupt practices, and time lag
Learn about the importance of budget planning in public finance, including the canon of certainty and fiscal discipline. Test your knowledge of expenditure planning and management of public funds.
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