Pakistan Institute of Public Summer Exam-2023

Finance Accountants [12.May.2023] [09:30 am – 12:15 pm]

Additional time – 15 min for Paper Reading

Public Finance
CGA | PMAD | PRAD
Marks-80 Subjective Duration: 02 Hours 30 Minutes
[Instructions]
 Ensure that the question paper delivered to you is the same, in which you intend to appear.
 Read the instructions given on the title page of Answer Script.
 Books are not allowed
 Start each question from fresh page.

Attempt all questions

Q.1. (a) Define Public Good and discuss its characteristics. Why is there a free-rider problem with 06
public goods?
(b) What is meant by Government Budget? Briefly explain the difference between Surplus 04
and Deficit Budget.

Q.2. (a) Enlist the development and non-development expenditures of Government. 05

(b) On what grounds Wagner’s hypothesis regarding the growth of Public Expenditures is 05
criticized?

Q.3. Explain the importance of Public Debt for a developing economy. 10

Q.4. (a) Differentiate the term Private Finance and Public Finance. 04

(b) Explain the limitations of Fiscal Policy. 06

Q.5. Explain the following:

(i) Advantages of Zero-Based Budgeting 05
(ii) Difference between Revenue Budget and Capital Budget 05

Q.6. (a) Briefly explain the effect of Taxation on Distribution of Income. 04

(b) Briefly explain three advantages and three disadvantages of Progressive Tax. 06

Q.7. (a) Distinguish between the following: 06

(i) Proportional and Lumpsum tax
(ii) Specific and Advalorem Tax

(b) Briefly explain the canon of Elasticity and canon of Surplus of Public Expenditures. 04

Contd….
 2

Q.8. (a) Differentiate Redeemable and Irredeemable Debt. 04

(b) Briefly explain main functions of National Finance Commission of Pakistan. 06

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