Dibrugarh University Question Papers: Public Finance (November' 2016)

Dibrugarh University - B.com 5th Sem
Public Finance Question Papers
2016 (November)
Commerce (General/Speciality)
Course: 501
Full Marks: 80
Full Marks: 32
Time: 3 hours

1. Answer the following questions:      1x8=8

a)      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.

b)      Name the economist who named principles of public finance as ‘Principle of Maximum Social Advantage’.

Ans: Professor Hugh Dalton

c)       What do you mean by ‘budget’?

Ans: The budget is a document containing a preliminary approval plan of public revenue and expenditure.

d)      Write the full form of CAGI.

Ans: Comptroller and Auditor General of India

e)      Mention one canon of taxation.

Ans: Canon of Equality

f)       Mention one demerit of indirect tax.

Ans: Too many taxes

g)      Mention any one difference between public expenditure and private expenditure.

Ans: Elasticity exists in case of private expenditure, whereas electricity does not exist in case of public 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:                 4x4=16

a)      Scope of Public Finance.

b)      Performance Budget.

c)       Non-tax Revenue.

d)      Canons of Public Expenditure.

3. (a) Explain the Keynes theory of public finance.       14

Or

(b) “The best system of public finance is that which secures the maximum social advantage.” Discuss this statement. 14

4. (a) What do you mean by ‘Financial Administration’? Discuss briefly the various instruments of Financial Administration.          3+11=14

Or

(b) What is ‘Zero-based Budgeting’? What are its features? Discuss the various steps involved in Zero-based Budgeting.    3+4+7=14

5. (a) What is ‘Public Revenue’? What are its various sources? How does it help in the economic development of a country?   3+6+5=14

Or

(b) Define “Taxation”. Discuss the main characteristics of a good tax system.      3+11=14

6. (a) Discuss the effects of public expenditure on production and distribution.       7+7=14

Or

(b) “Public Expenditure has a tendency to grow very fast in modern time.” Briefly discuss the factors responsible for the rapid growth of public expenditure.             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 questions:         1x8=8

a)      Write the name of a merit good.       Ans: Education, health care etc example of demerit goods: smoking, drugs, wine

b)      Which of the following is not a source of revenue of Central Government?

Ø  Income Tax.

Ø  Corporation Tax.

Ø  Land Revenue.

Ø  Import Duty.

c)       What do you mean by 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.

d)      “Direct tax is one which is actually paid by the person on whom it is imposed.” Who defined it?

Ans: Prof. Dalton

e)      Mention two main causes of tax evasion.

Ans: High rate of tax, Huge profit making

f)       What is the exemption limit of income tax (personal) as per Union Budget, 2015 – 16?

Ans: 2,50,000

g)      Mention a tax levied by Municipal Corporation.

Ans: Water cess

h)      Write a special feature of federal finance.

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

a)      Role of Public Finance.

b)      Characteristics of Zero-based Budgeting.

c)       Difference between Public and Private goods.

d)      Differences between Tax and Non-tax revenue.

e)      Gram Panchayat.

3. (a) Explain the rationale of public finance in the present-day scenario.    12

Or

(b) Critically explain the ‘Principle of Maximum Social Advantage’.          12

4. (a) State and explain Adam Smith’s Canon of Taxation.    11

Or

(b) Define taxable capacity. Discuss the factors which affect the taxable capacity.      3+8=11

5. (a) what are the factors responsible for the growth of public expenditure in a developing economy? Discuss.                   11

Or

(b) Explain the effects of public expenditure on production and distribution.          11

6. (a) Discuss the techniques of budgetary control.           11

Or

(b) Critically examine the Central-State financial relation in India.      11

7. (a) Discuss the recommendations of Fourteenth Finance Commission of India.    11

Or

(b) Discuss the reasons behind the increasing burden of external debt in present-day India.   11

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