Module 5

Question 1

Types of Government Expenditures

Answer 1

Current Expenditure
Capital Expenditure
Transfer Payments
Exhausted Expenditure

Question 2

It is a recurring expense. Such type of expenses are used in the terms of providing goods and services. It includes wage, salaries, and so on. It is also called regular expenditure

Answer 2

Current Expenditures

Question 3

It is the expenditures in the assets such as in the purchase of items that last for the long period. For example, building hospital, constructing roads, etc.

Answer 3

Capital Expenditure

Question 4

is a payment done for no goods and services. It includes the thing like pensions, allowances, benefits, lottery payments

Answer 4

Transfer Payments

Question 5

Importance of Government Expenditure

Answer 5

1. To maintain law and order
2. To invest on social and economic overheads

Question 6

is the main function of government. Without this, government are misplaced with their activities. To maintain this, government needs a huge amount of budget every year

Answer 6

To maintain law and order

Question 7

for economic progress, firstly, there must be the development of socio-economic infrastructure like road, electricity, transportation, school, hospital, etc. It is possible with the public expenditure because to develop such infrastructures, here be huge

Answer 7

To invest on social and economic overheads

Question 8

such type of expenditure is related to day to day activities. It constitutes the expenditure made on the following government organization:

Answer 8

Regular or Administrative Expenditure

Question 9

It includes expenditure of Council of Ministers, Various Ministers, District Administrative Office Police Force, Jail Administration, etc.

Answer 9

General Administration

Question 10

it consists of expenditure made on a collection of land revenue, custom office, inland tax department etc.

Answer 10

Revenue Administration

Question 11

for the development of agricultural sector such as irrigation and power, seed farms, fertilizer factories,nwarehouses, etc. the government has to incur a lot of expenditure. To establish a larger industry, it requires a huge amount of capital. This is possible through government
expenditure.

Answer 11

Development of agricultural and industrial sector

Question 12

natural resources e the essential for the economic development of a country which needs a huge amount of capital. This is not
possible by e private sector. So, public expenditure helps to explore and utilize the natural resources for the development of a country.

Answer 12

Utilization of natural resources

Question 13

government expenditures provides subsides, free education and healthcare
facilities to the poor people. So government expenditure is used a powerful fiscal instrument to bring about an equitable distribution of income and wealth.

Answer 13

redistribution of income

Question 14

the government needs to allocate its budget to carry out administrative service
of different agencies, department, ministries, and concerned offices. The government provides various types of services to
its citizens.

Answer 14

provide administrative services

Question 15

• it consists the expenditure of the National Planning Commission, Center Bureau of Statistics and Department of Metric Measurement, etc.

Answer 15

ECONOMIC ADMINISTRATION AND PLANNING

Question 16

it comprise the
expenditure of Court and Juridical commission.

Answer 16

juridical administration

Question 17

it consists the expenditure on defense through national security organizations. The cost of the Nepal Army also comes under regular expenditure heading.

Answer 17

defense

Question 18

it includes the expenditure on
agriculture, irrigation, land reform, forest, industry, mining,
communication, transport, electricity, etc.

Answer 18

economic service

Question 19

it include the expenditure on education, drinking water, health local development and caher social services.

Answer 19

social service

Question 20

it includes expenditure on payment of principle and interest on loan borrowed from a different organization, like public organization, international organization, etc.

Answer 20

loan repayment and interest

Question 21

it includes the expenditure on travelling expenses of dignitaries and government delegation, hospitality,
pension, allowance, etc.

Answer 21

miscellaneous

Question 22

it is related to the expenditure on development activities of the government. It consists of the following heads:

Answer 22

development or capital expenditure

Question 23

government expenditure exceeds government revenue.

Answer 23

fiscal deficit

Question 24

government revenue exceeds government expenditure

Answer 24

fiscal surplus

Question 25

This policy is to revive economic
growth, usually during a recession. Higher spending leads to increased demand for goods and services in the economy.

Answer 25

expansionary fiscal policy

Question 26

This policy aims to contract or
weaken economic growth. The government pursued this policy
during the late-expansion period when inflationary pressures were too high and the economy overheated. If not prevented, it could lead to hyperinflation, threatening economic stability.

Answer 26

contractionary fiscal policy

Question 27

is when a rising government deficit reduces private investment. The net effect on the economy depends on which one has a more significant effect on aggregate demand?

Answer 27

crowding-out effect

Question 28

appropriations spent for the purchase of goods and services,
the benefits of which extend beyond the fiscal year and which add to the assets of government, including investments in the capital stock of government-owned or controlled corporations
and their subsidiaries.

Answer 28

capital outlays of the national government

Question 29

refer to the disbursement of
funds for the construction of various basic public works of the country, such as roads, ports, airports, water supply, irrigation, and other capital investments, the benefits of which extend to the general public. e national budget, infrastructure

Answer 29

infrastructure expenditure

Question 30

to the national government investments in the authorized capital stock of government-owned or controlled corporations.

Answer 30

equity contributions to government corporations

Question 31

cost of borrowed funds which
form part and parcel of the cost of the items financed. by the
loan.

Answer 31

interest payments

Question 32

categorizes government expenditures into
10 sectors according to their function, purpose, and
contribution to society. The sub-sectors are considered under two basic types: sectors that benefit society in general, and sectors that directly benefit individual persons.

Answer 32

COFOG

Question 33

are those which require productive resources (land, labor, and capital) to be diverted from private use by individuals and corporations so they can be used by the government

Answer 33

exhausted expenditures

Question 34

is based on various functions of the government. This is has been
used in Nepalese budget document. It is classifies into two categories.

Answer 34

functional classification of expenditure

Question 35

Function of Classfication

Answer 35

1. General Administration
2. Development or capital expenditure
   3.

Question 36

-it consists the expenditure of the National Planning Commission, Center Bureau of Statistics and Department of Metric Measurement, etc

Answer 36

economic administration and planning

Question 37

it includes expenditure on
payment of principle and interest on loan Borrowed from a different organization, like public organization, international
organization, etc

Answer 37

loan repayment and interest