Public Finance: Budget and Expenditure Planning
18 Questions
0 Views
3.6 Stars

Public Finance: Budget and Expenditure Planning

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.

Created by
@AvailableInspiration

Questions and Answers

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?

<p>Budget preparation</p> Signup and view all the answers

What are the different means of control of public expenditure?

<p>Budgetary, legislative, executive, audit, and parliamentary control</p> Signup and view all the answers

What is the purpose of controlling public expenditure?

<p>To ensure efficient utilization of public funds</p> Signup and view all the answers

What is the purpose of a budget in the context of public expenditure?

<p>To provide spending authorities with knowledge of public fund usage</p> Signup and view all the answers

Which theory of public expenditure is associated with Adam Smith's 'laissez-faire' philosophy?

<p>Classical Theory of Minimum Expenditure</p> Signup and view all the answers

What is the primary goal of Lindahl's Benefit Model of Voluntary Exchange?

<p>To determine the optimal tax share for each citizen</p> Signup and view all the answers

What is the main advantage of a well-planned budget in the context of public expenditure?

<p>It ensures responsible allocation of public funds</p> Signup and view all the answers

Which theory of public expenditure focuses on optimizing public expenditure for maximum social welfare?

<p>Musgrave's Optimum Budget Theory of Public Expenditure</p> Signup and view all the answers

What is the main purpose of joint cost allocation in the context of public goods provision?

<p>To allocate the costs of public goods provision among beneficiaries</p> Signup and view all the answers

What is the primary focus of planning and implementing public expenditure according to the canon?

<p>Achieving maximum social advantage</p> Signup and view all the answers

What is a key objective of public expenditure according to the canon?

<p>Achieving price stability and economic growth</p> Signup and view all the answers

What is the consequence of not following the canon of economy?

<p>Wastage of funds and misallocation of resources</p> Signup and view all the answers

What is the purpose of undertaking a cost-benefit analysis according to the canon?

<p>To select the most beneficial investment project</p> Signup and view all the answers

What is the key principle behind the canon of economy?

<p>Most proper utilization of resources</p> Signup and view all the answers

What are some common reasons for wasteful expenditure according to the canon?

<p>Faulty planning, corrupt practices, and time lag</p> Signup and view all the answers

More Quizzes Like This

Types of Budget in Public Finance
3 questions
Private Finance and State Budget
30 questions
Public Budgeting and Financial Management
119 questions
Use Quizgecko on...
Browser
Browser