FINANCIAL ADMINISTRATION IN THE MONETARY SECTOR (FINA 431) 3 RD TRIMESTER 2012
KENYA METHODIST UNIVERSITY
END OF 3'RD 'TRIMESTER 2012 (EVENING) EXAMINATIONS
SCHOOL: ORGANIZATION AND ECONOMICS
DEPARTMENT: ACCOUNTING & FINANCE
UNIT CODE: FINA 431
UNIT TITLE: FINANCIAL MANAGEMENT IN PUBLIC SECTOR
TIME: 2 HOURS
Instructions: Get suggestions ONE and any TWO other Questions.
Question A single
As a result of scarcity of resources with the government, the time must be used monetarily and proficiently. To this end therefore , selection of projects to attempt should be based on a cost advantage analysis plus the chosen programs should be exposed to the tests of real performance against their anticipated standards. It has led the planning programming cost management system becoming adopted inside the public sector.
Clarify the realistic of organizing and software budgeting program to a developing country just like Kenya.
Make clear THREE steps linked to planning and program budgeting system.
What problems do you think a system of budgeting will probably face in the implementation.
According to theories of accelerating public expenditure, there is a natural long-term tendency for point out expenditure to increase overtime. Emphasize reasons which were used by promoters of these ideas to explain this kind of increasing pattern of community expenditure.
According to the govt budget of 2008/2009, the government will not be capable of raise enough funds to satisfy its expenses. Highlight FIVE ways the minister intended for finance may possibly raise cash to meet the expected deficiency.
Incase of market failure, governments may intervene to take care of distortions created by failure and strive to improve the performance in the way that the market runs. Explain, citing relevant cases in...