Administration of law and order and justice. Public expenditure has, thus, an important rule in reducing economic inequalities in the community. Also we have statrted coaching for various competitive exams like RBB, SSC, UGC - NET, State Level Competitive Exams. No tax or expenditure can be made without the permission of the executive. (b) What are the principles of public expenditure? For the grade E 45 points The importance/significance/role of public expenditure may be studied under the following heads: Public expenditure plays a crucial role in the economic development and planning. It generates more revenue to the government. Ans: Role/Significance/Importance of Public Expenditure. On the other hand public finance deals with income, expenditure and borrowings of the government. Sample finance interview questions with practical answer guidelines. Income Tax(on income of the individual as well as joint Hindu families), Corporation Tax (on income of the companies both domestic and foreign companies operating in India ), Interest Tax (on the gross interest income of the financial institutions like Bank), Expenditure Tax(expenditure incurred in luxury hotels and restaurants), Wealth Tax(total wealth of individuals and Hindu undivided families), Central excusive Duty. Businesses are all controlled by the government to a given level and sometimes the government intervenes in the economy. It generates less revenue as compared to others. Something will not be allowed the plea that it was done in the past. tends to widen the gap of inequalities. 3. Tax rates are uniform for all categories of companies. When the volume of expenditure is small with a slighter increase in it, the additional utility is very high. Click here to download free kasneb cpa materials,pastpapers and mock questions.Notes and revision kits available in pdf format.Download questions & answers Finance is a wide field covering insurance, retail banking, investment banking and other financial services. Ans: The best system of public finance is that which secures the maximum social advantage. For that we provide Free cpa Practice Exam 2020 real test. We provide complete coaching for Commerece and Arts stream from Class 12 to Master Degree level. These agencies can be grouped as: Financial Department of Financial Ministry. Download. At CIPFA we give our students a unique opportunity to hone your exam skills by using our LIVE exam system with practice tests of exam standard questions. Questions may progress to the next section (Advanced), depending on age and experience. Successful studying is impossible without the qualified assistance that you can get on our site. Grants and Gifts: Gifts are Voluntary contributions by individuals or institutions to the government. Control over Public Expenditure. Budget deficit Budget deficit= total expenditure-total receipts. Maintenance of army and provision for defence goods. Every Government is bound to spend the money granted by the parliament for no purpose other than it was sanctioned by the legislature or parliament. is called public revenue or public income. Formerly, the activities of the state were limited, i.e. The best way to be good at interviews is to practice, so we recommend reading the most common questions and answers below to be sure you’re prepared for anything! Ans: Gone are the days when any kind of state intervention in the socio-economic affairs of a country was considered as a positive hindrance in the smooth working of the economy. One of the important principles of public finance is the so – called Principle of Maximum Social Advantage explained by Professor Hugh Dalton. America and United Kingdom have public revenue that is several times higher than that of our country. In the quiz below you will get to test out what you know about different types of taxes and regulations implemented by governments when it comes to business regulation and why they have been put in place. Questions on General Economics and Indian Economy. Ans: A government needs income for the performance of a variety of functions and meeting its expenditure. Just like an individual seeks to maximize his satisfaction or welfare by the use of his resources, the state ought to maximize social advantage or benefit from the resources at its command. ANSWER: c. Effective revenue deficit Effective revenue deficit= revenue deficit-grants for creation of capital assets. And is influenced by the Central sales tax the tax or expenditure be! Credit will be undertaken only when it will have justification tax which is stupendous task test, cheat in! 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