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Quiz PAD370 Noraini Bt Abd Soud

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NAME : NORAINI BT ABD SOUD
STUDENT ID: 2015517381
DATE:17 MAY 2020
PAD 370 / EPJJ
QUIZ ONLINE / MAY 2020
ANWER ALL QUESTIONS BRIEFLY. EACH ANSWER MUST HAVE AT LEAST A MINIMUM OF 30
WORDS.
1. EXPLAIN ANY ONE SIGNIFICANCE OF PUBLIC FINANCIAL ADMINISTRATION.
Based on Hoover Commission, 1949 Financial administration which involves the machinery
and methods by which the funds for the support of public services are raised, spent and
accounted for is at the very core of modern government.
2. IDENTIFY ANY ONE COMPONENT OF PUBLIC FINANCE.
One of the component of Public Finance are Tax Administration and is a compulsory charge
imposed by the state or public authority in respect of which no specific service to the
individual is rendered in return.
3. DIFFERENTIATE CHARGED EXPENDITURE (ARTICLE 98 OF THE FEDERAL CONSTITUTION)
WITH SUPPLY EXPENDITURE (ARTICLE 100 OF THE FEDERAL CONSTITUTION).
Charged Expenditure :
i. Consist of Charged Expenditure which underlined under Article 98 of
Federal Constitution
ii. Approval from parliament is not required
iii. Charged from Consolidated Revenue Fund
iv. Allocation for Ruler’s allowance, Attorney General, Auditor General,Judges of the High
Court, expenditure for commission, pension, retirement allowance, gratuities & rewards and
interest on loans
Supply Expenditure :
i. Specified under Article 100 of Federal Constitution)
ii. Not charged from Consolidated Fund
iii. Parliament Approval is required in the form of an Appropriation bill.
iv. When approved, becomes an Act.
v. Expenditure for daily operations of Government Agency. Eg. Payment of salaries for civil
servants, overhead expenditures, stationery items.
4. IDENTIFY ANY ONE PURPOSE OF GOVERNMENT BUDGETING.
One of the purpose of Government Budgeting are to implement Government Policy which is
The goals of the government are realize through implementation of government policy. The
Budget will priorities the nation policy . Most nation will spend a significant portion of their
budget defence, health and education.
5. EXPLAIN THE THREE MAIN ACCOUNTS IN THE FEDERAL CONSOLIDATED FUND.
Section 7 of the Financial Procedure Act 1957 [Act 61], provides that the Consolidated Fund is
divided into the Consolidated Revenue Account, the Consolidated Loan Account and the Consolidated
Trust Account. Consolidated Revenue Account mainly accounts all financial transactions covering the
sources and applications of financial resources as appropriated by the Parliament for a respective
financial year. Consolidate Loan Account reports on Federal Government borrowings whereas
Consolidated Trust Account specifically accounts for trust related receipts and payment transactions.
6. IDENTIFY ANY ONE MAIN ELEMENT OF THE PROGRAM AND PERFORMANCE BUDGETING
SYSTEM (PPBS).
The Element of the Program and Performance Budgeting System are Developing
Performance Indicator and it is to Evaluate financial & physical performance , Select the units
of measurement, reflect the output – quantity/quality and lastly for Comparison between
actual output & targeted output
7. EXPLAIN WHY PARLIAMENTS APPROVAL IS NEEDED FOR THE SPENDING OF THE BUDGET?
This is the most important step in the budget process where the budget prepared by the
executive must get the approval of parliament. In a parliamentary democracy, it is the executive
that prepares the budget- the legislature has no hand in formulation of the budget. Normally the
budget is introduced into the lower house of parliament in the form of a budget speech, by the
minister of finance. The annual estimates of the federal government are presented in parliament
as the Supply Bill by the Minister of Finance who in his Budget Speech highlights fiscal and
financial strategies and policies for the ensuing year. New revenue measures are announced and
the Finance Bill introduced to provide for new taxes or modifications to existing tax structures.
The estimates of each Ministry are then debated and taken through the various stages in the
House of Representatives, after which the Minister will move that the Supply Bill be passed.Once
the bill is passed by both houses of Parliament and in the case of Malaysia, by the YDPA, it then
becomes an Act. (Supply Act).
8. HIGHLIGHT ONE MAIN OBJECTIVE OF THE OUTCOME BASED BUDGETING .
One of the main objective of The Outcome Based Budgeting are to provide structural
mechanism to translate policy and concept of NTP to outcome and results and Empower CO to
manage resources under their control
9. IDENTIFY ANY ONE MAIN CHARACTERISTIC OF A GOOD TAXATION SYSTEM.
One of the characteristic of good taxation system are certainty ,and it is necessary that the tax
laws are clear and the taxpayer is therefore able to predict, with reasonable certainty what his
tax liability is likely to be.
10. DIFFERENTIATE BETWEEN OPERATING AND DEVELOPMENT EXPENDITURE.
Operating Expenditure can be classified by sector into economic , social, security, general
administration, charged and transfer ( grant, loan, repayment). It is also can be classified by function
divided into vote head which further classified into supply vote and charged vote and the further
classified by programmes/activities .For the Development expenditure classification by section
divided into economic,social,security,general administration and contingency reserve
fund.Classification by function divided into development vote head which further classified into
projects.
EACH QUESTION 5 MARKS.
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