Public Budget Principles and Process Practice Quiz (62 questions)

All questions and answers

1. How do the organic and material criteria differ when identifying public finance?

The organic criterion focuses on the actor’s mission, while the material criterion focuses on whether the activity uses command powers.
The organic criterion focuses on public-service tasks, while the material criterion focuses on whether funds pass through markets.
The organic criterion focuses on budgetary redistribution, while the material criterion focuses on the actor’s legal status.
The organic criterion focuses on the actor’s legal status, while the material criterion focuses on public funds and their use.

The organic criterion focuses on the actor’s legal status, while the material criterion focuses on public funds and their use.

Explanation

The organic criterion classifies activity by the legal status of the actor, whereas the material criterion looks at public funds and how they are used. A focus on command powers belongs to a different criterion.

2. A private organization exercises powers of command in managing funds, while a public organization carries out a financial activity as a private person would; how does the public-power-prerogatives criterion classify these activities?

It treats both activities as private because neither activity is defined by a public-service mission.
It may treat the private organization’s activity as public and the public organization’s activity as private.
It classifies each activity by the legal status of its organization rather than by its powers.
It treats both activities as public because each organization handles financial matters.

It may treat the private organization’s activity as public and the public organization’s activity as private.

Explanation

Under this criterion, the use of powers of command may make a private body’s financial activity public, while a public body acting like a private person may have private financial activity. Classification by organizational legal status describes the organic criterion instead.

3. A government collects resources through a budget and reallocates them within society outside the market circuit; what concept does this describe?

Private-market allocation of financial resources
Political financial intermediation
Organic identification of public finance
Administration of public persons’ financial activities

Political financial intermediation

Explanation

Political financial intermediation reallocates resources within society outside the market circuit, including through budgetary collection and redistribution. Organic identification instead classifies public finance by the legal status of the actor.

4. Which distinction correctly separates formal sources of law from real sources of law?

Formal sources are origins from which legal norms draw their substance, while real sources are techniques through which law is expressed.
Formal sources are written rules, while real sources are unwritten rules with the same legal function.
Formal sources clarify how rules apply, while real sources establish rules through constitutional and legislative acts.
Formal sources are techniques through which law is expressed, while real sources are origins from which legal norms draw their substance.

Formal sources are techniques through which law is expressed, while real sources are origins from which legal norms draw their substance.

Explanation

Formal sources are the techniques used to express law, whereas real sources are the underlying origins of legal norms’ substance. The reverse description is a common confusion between these two categories.

5. Under article 70(3) of Burundi’s Constitution, how may exemptions from public charges be established?

They may be granted by law, alongside the constitutional principle of equality before public charges.
They may be granted by administrative practice, alongside the constitutional principle of equality before public charges.
They may be granted by contract, alongside an exemption from solidarity in disaster-related charges.
They may be granted by regulation, alongside a constitutional presumption of unequal public charges.

They may be granted by law, alongside the constitutional principle of equality before public charges.

Explanation

Article 70(3) establishes equality before public charges and permits exemptions by law. Administrative practice may help interpret rules, but it is not the prescribed basis for establishing these exemptions.

6. A proposed tax rate is to be set in Burundi; which source must define that rate under article 164(5) of the Constitution?

A regulation must define the tax rate, while jurisprudence defines the tax base.
Legislation must define the tax rate, as well as the tax base for taxes and duties.
Administrative practice must define the tax rate, while contracts define the tax base.
Administrative doctrine must define the tax rate, while legislation defines the tax base.

Legislation must define the tax rate, as well as the tax base for taxes and duties.

Explanation

Article 164(5) reserves the definition of tax bases and the rates of taxes and duties to legislation, expressing tax legality. Administrative doctrine interprets or guides application rather than taking over this legislative role.

7. Which set consists of interpretative internal sources rather than normative internal sources of public finance law?

General principles, contracts, and laws
The Constitution, laws, and regulations
Administrative doctrine, jurisprudence, and administrative practice
The Constitution, jurisprudence, and regulations

Administrative doctrine, jurisprudence, and administrative practice

Explanation

Administrative doctrine, jurisprudence, and administrative practice are interpretative sources that clarify or guide the application of law. The Constitution, laws, regulations, general principles, and contracts belong to the normative category.

8. A government makes economic intervention a regular feature of State action rather than limiting itself to order and essential public services; which conception does this represent?

The classical conception focused on a neutral tax and a balanced budget
The organic conception based on the legal status of public actors
The non-interventionist conception rooted in economic liberalism
The interventionist conception of State financial power

The interventionist conception of State financial power

Explanation

The interventionist conception treats State action in the economy as a regular feature. The non-interventionist conception instead limits the State to maintaining order and providing essential public services.

9. Which combination best characterizes classical public finance?

A large budget, extensive economic-policy spending, a tax designed to steer markets, and planned deficits
A small budget, mainly social transfers, a tax coordinated with credit policy, and revenue exceeding expenditure
A large budget, mainly administrative spending, a neutral tax to expand demand, and balanced revenue and expenditure
A small budget, mainly administrative spending, a neutral tax to cover public expenses, and balanced revenue and expenditure

A small budget, mainly administrative spending, a neutral tax to cover public expenses, and balanced revenue and expenditure

Explanation

Classical public finance aims for a small budget dominated by administrative expenditure, a neutral tax to cover public expenses, and equality between revenue and expenditure. A large budget and taxes used to steer markets align more closely with interventionist approaches.

10. What authority does Article 14 of the 1789 Declaration of the Rights of Man and of the Citizen recognize for citizens regarding public contributions?

To set their rates, collect them directly, and allocate them among public agencies
To challenge their legality in court, but not to consent to their creation
To approve their use, but leave their necessity and characteristics to the executive
To establish their need, consent to them, monitor their use, and determine their characteristics

To establish their need, consent to them, monitor their use, and determine their characteristics

Explanation

Article 14 recognizes citizens’ right to assess the need for public contributions, consent to them, monitor their use, and determine their characteristics. The executive-approval option is incorrect because it omits citizens’ authority to consent and determine those characteristics.

11. A federated community receives most of its funding through subsidies from the central state and has little control over its own finances. What does this imply about federalism in that system?

Federalism is illusory because communities cannot participate in national legislation
Federalism is genuine because central subsidies give the community stable resources
Federalism is genuine because the community remains responsible for local public services
Federalism is illusory because dependence on central subsidies limits financial autonomy

Federalism is illusory because dependence on central subsidies limits financial autonomy

Explanation

Genuine federalism depends on real financial autonomy for federated communities; dependence on central subsidies makes it illusory. Stable funding does not by itself establish autonomy when the community relies on the central state.

12. What condition makes administrative decentralization financially real?

Decentralized services receive central funding while the state retains financial control
Decentralized services set administrative priorities while sharing a central budget
Decentralized services collect local revenues but rely on central approval for spending
Decentralized services have their own resources and genuine financial autonomy

Decentralized services have their own resources and genuine financial autonomy

Explanation

Administrative decentralization is real only when decentralized services possess their own resources and genuine financial autonomy. Local revenue collection alone is insufficient if financial control remains dependent on central approval.

13. During an economic downturn, what relationship should a government expect between economic conditions and its public finances?

Tax revenues may remain stable, while borrowing possibilities depend mainly on public spending plans
Tax revenues may weaken, while borrowing possibilities depend mainly on legal tax rules
Tax revenues may rise, while borrowing possibilities remain detached from economic conditions
Tax revenues may weaken, and borrowing possibilities depend on the current economic situation

Tax revenues may weaken, and borrowing possibilities depend on the current economic situation

Explanation

Tax revenues depend substantially on economic conditions, and borrowing possibilities are determined by the current economic situation. Legal tax rules matter, but they do not replace the economic conditions that shape borrowing capacity.

14. If inflation is rising, which public-spending response matches the stated fiscal mechanism?

Increase public spending to help combat inflation
Increase public spending to reduce the level of demand
Reduce public spending to stimulate economic activity
Reduce public spending to help combat inflation

Reduce public spending to help combat inflation

Explanation

Public spending may be reduced to combat inflation, while increasing it can stimulate economic activity. Increasing spending is therefore a plausible tool in a different economic context, but it does not match the stated response to inflation.

15. What best describes the relationship between a country’s tax system and its social and political structure?

The tax system is a set of abstract legal rules that operates separately from that structure
The tax system reflects political arrangements but remains separate from social organization
The tax system reflects economic conditions but remains separate from political arrangements
The tax system reflects that structure rather than being merely a set of abstract legal rules

The tax system reflects that structure rather than being merely a set of abstract legal rules

Explanation

Tax systems reflect countries’ social and political structures rather than existing as merely abstract legal rules. The legal-rules-only view overlooks how those broader structures shape taxation.

16. Which statement correctly distinguishes the subjects studied by public finance and private finance?

Public finance studies public funds, while private finance studies wealth available to individuals
Public finance studies state expenditures, while private finance studies household consumption
Public finance studies individual wealth, while private finance studies funds held by the state
Public finance studies public borrowing, while private finance studies private business profits

Public finance studies public funds, while private finance studies wealth available to individuals

Explanation

Public finance studies public funds, whereas private finance studies the wealth available to individuals. The other distinctions focus on narrower activities and do not capture the defining difference in subject matter.

17. A researcher compares how public funds and private capital move. Which governing forces distinguish the two?

Public finances are governed by capital-market supply and demand; private finance by state intervention and public authority
Public finances are governed by household preferences; private finance by central government allocation
Public finances are governed by state intervention and public authority; private finance by capital-market supply and demand
Public finances are governed by business competition; private finance by public budgeting and administrative rules

Public finances are governed by state intervention and public authority; private finance by capital-market supply and demand

Explanation

Public finances are governed by state intervention and public authority, while private finance and private fund movements are governed by supply and demand in capital markets. Reversing those governing forces confuses the public and private domains.

18. A public agency and a private firm are choosing projects. Which distinction best reflects their respective financial aims?

The agency pursues investor returns, while the firm is oriented toward social policy
The agency pursues the general interest, while the firm is oriented toward profit
The agency is oriented toward profit, while the firm pursues the general interest
The agency pursues market share, while the firm is oriented toward public service

The agency pursues the general interest, while the firm is oriented toward profit

Explanation

Public finance pursues the general interest, whereas private finance is oriented toward profit. The alternative assigning profit to the public agency and the general interest to the firm reverses this distinction.

19. What fundamentally distinguishes a tax from a voluntary contribution used to fund public purposes?

A tax is matched to an individual service, while a voluntary contribution funds general spending.
A tax is collected by agreement, while a voluntary contribution is imposed by public authority.
A tax is a loan that earns interest, while a voluntary contribution is a permanent payment.
A tax is compulsory, while a voluntary contribution depends on the contributor’s choice.

A tax is compulsory, while a voluntary contribution depends on the contributor’s choice.

Explanation

A tax is a compulsory levy intended primarily to fund public coffers, whereas a voluntary contribution is not imposed through compulsion. A loan may raise public resources, but it is distinguished by its voluntary character and loan-specific terms such as interest.

20. What makes taxation an expression of state sovereignty?

The state invites voluntary payments and collects them without exercising authority.
The state sets taxes as prices for particular services and collects them through providers.
The state establishes taxes unilaterally and collects them through compulsion.
The state negotiates each tax with taxpayers and collects it through agreement.

The state establishes taxes unilaterally and collects them through compulsion.

Explanation

Taxation expresses state sovereignty because the state establishes taxes unilaterally and uses its authority to collect them compulsorily. Negotiated voluntary payments lack this compulsory exercise of state authority.

21. How does modern tax neutrality differ from the classical liberal conception of tax neutrality?

Classical liberal theory seeks to fund public spending without economic influence, while modern neutrality accepts influence that does not distort production circuits.
Classical liberal theory accepts economic influence on production, while modern neutrality requires taxation to avoid funding public spending.
Classical liberal theory permits distortion of production circuits, while modern neutrality requires taxation to have no economic effects.
Classical liberal theory prioritizes social objectives, while modern neutrality treats revenue collection as unrelated to economic activity.

Classical liberal theory seeks to fund public spending without economic influence, while modern neutrality accepts influence that does not distort production circuits.

Explanation

Classical liberal theory treats funding public expenditure as the tax’s sole purpose and calls for absolute neutrality; modern neutrality permits economic influence if production circuits are not distorted. The claim that modern neutrality requires no economic effects confuses it with absolute neutrality.

22. When raising revenue conflicts with economic or social tax objectives, which objective should take precedence?

The financial objective, because public revenue has no substitute for funding the Treasury.
The economic objective, because tax revenue can be replaced by other Treasury funding instruments.
The economic and social objectives, because excessive taxation carries no risk to public revenue.
The social objective, because fiscal complexity generally increases the revenue available to the Treasury.

The financial objective, because public revenue has no substitute for funding the Treasury.

Explanation

The financial objective takes precedence because tax revenue has no substitute for funding the Treasury, while other instruments can serve economic and social policies. Treating economic objectives as primary overlooks this difference in available funding alternatives.

23. According to G. JEZE, what principle should guide the distribution of public charges?

Charges should reflect the amount of private wealth each taxpayer transfers voluntarily to the state.
Charges should reflect each taxpayer’s insurance risk rather than their ability to contribute.
Charges should reflect the value of the public services each taxpayer receives from the state.
Charges should reflect taxpayers’ capacity to contribute rather than the benefits they receive from the state.

Charges should reflect taxpayers’ capacity to contribute rather than the benefits they receive from the state.

Explanation

G. JEZE proposed distributing public charges according to taxpayers’ contributive capacities, not according to the benefits they receive. A benefits-based allocation is a different principle from the capacity-to-contribute approach.

24. Why is the theory that tax functions as an insurance premium rejected?

The state has functions beyond security and protects against disaster rather than indemnifying after it.
The state offers protection through voluntary agreements rather than public authority.
The state matches each taxpayer’s payment to the cost of a specific protective service.
The state provides security only after a loss and indemnifies taxpayers as an insurer would.

The state has functions beyond security and protects against disaster rather than indemnifying after it.

Explanation

The insurance-premium theory is rejected because the state does more than provide security, and its protection against disaster differs from an insurer’s indemnification after a loss. The indemnification claim reverses the distinction between state protection and insurance.

25. A tax applies to an asset without considering the owner’s marital status or family responsibilities. What kind of tax is it?

A consumption tax, because it applies whenever wealth is transferred for a service.
A synthetic tax, because it applies to a taxpayer’s total receipts.
A personal tax, because it applies to taxable matter owned by an individual.
A real tax, because it applies to taxable matter without accounting for personal circumstances.

A real tax, because it applies to taxable matter without accounting for personal circumstances.

Explanation

A real tax applies to taxable matter without regard to the taxpayer’s personal situation. A personal tax, by contrast, accounts for circumstances such as family responsibilities or marital status.

26. Which description best fits income under civil law?

Wealth consolidated in assets that remains stable, whether it produces income or not.
A transfer of wealth made to obtain a particular good or service.
A monetary sum arising periodically from a permanent source, such as capital or labor.
Any benefit received, including occasional gains and benefits provided in kind.

A monetary sum arising periodically from a permanent source, such as capital or labor.

Explanation

Civil-law income is a monetary sum arising periodically from a permanent source, such as capital, labor, or an ability to generate resources. Fiscal taxable income is broader and can include occasional income and benefits in kind.

27. An individual receives a one-time benefit in kind. Why can it still count as taxable income?

Fiscal autonomy allows tax law to include benefits in kind and occasional income.
Taxable income is limited to periodic returns from permanent sources.
Civil-law income includes every nonmonetary benefit from any source.
Capital includes every one-time benefit received by a taxpayer.

Fiscal autonomy allows tax law to include benefits in kind and occasional income.

Explanation

Fiscal autonomy allows tax law to define income differently from other branches of law, including benefits in kind and occasional or accidental income. Civil-law income, by contrast, is defined as a monetary sum arising periodically from a permanent source.

28. What is the base of a synthetic tax on overall expenditure?

The amount spent on each individual good or service, assessed at the point of purchase.
The periodic monetary income from permanent sources, assessed under civil-law rules.
The total amount of receipts, assessed using one of several possible techniques.
The value of stable assets held by the taxpayer, including assets that produce no income.

The total amount of receipts, assessed using one of several possible techniques.

Explanation

A synthetic tax on overall expenditure is based on the total amount of receipts and may be established using different techniques. A tax on individual purchases focuses on particular transactions rather than the stated aggregate receipts base.

29. What does the liquidation of a tax determine?

The person legally responsible for paying the tax, based on the identity of the taxpayer
The deadline for collecting the tax, based on the date the tax becomes due
The procedure for challenging the tax, based on the taxpayer’s written claim
The amount payable to the Treasury, based on the taxable matter’s valuation and the applicable rate

The amount payable to the Treasury, based on the taxable matter’s valuation and the applicable rate

Explanation

Tax liquidation calculates the amount due to the Treasury by applying the tariff to the evaluated taxable matter. Identifying who must pay concerns the taxpayer or liable person, not the calculation of the tax amount.

30. A tax authority estimates a property's value from its average rental value, an element attached to the taxable matter. Which valuation method is being used?

Lump-sum valuation, using an attached element to estimate its average value
Indicator-based valuation, using an external sign to estimate the taxable matter
Conventional fixed-rate valuation, using an agreement with the tax authority
Legal fixed-rate valuation, using figures established in advance by the legislature

Lump-sum valuation, using an attached element to estimate its average value

Explanation

Lump-sum valuation uses an element attached to the taxable matter to estimate its average value. Indicator-based valuation instead relies on an external sign, such as a feature that does not form part of the taxable matter.

31. Under the administrative criterion, what distinguishes a direct tax from an indirect tax?

A direct tax is borne by the legal taxpayer, while an indirect tax can be passed on by the legal payer
A direct tax is collected through a nominative tax roll, while an indirect tax is collected without one
A direct tax is calculated by a fixed tariff, while an indirect tax is calculated by an agreed estimate
A direct tax applies to stable taxable matter, while an indirect tax applies to intermittent events

A direct tax is collected through a nominative tax roll, while an indirect tax is collected without one

Explanation

The administrative criterion distinguishes taxes by how they are collected: direct taxes use a nominative tax roll, whereas indirect taxes do not. Whether the legal payer can pass on the tax is the economic criterion, not the administrative one.

32. A taxpayer and the tax authority agree on a tax base for a specified period. What kind of fixed-rate assessment does this describe?

A conventional fixed-rate assessment, based on an agreement with the tax authority
A legal fixed-rate assessment, based on data established in advance by the legislature
A lump-sum assessment, based on an attached element and its average value
An indicator-based assessment, based on a sign external to the taxable matter

A conventional fixed-rate assessment, based on an agreement with the tax authority

Explanation

A conventional fixed-rate assessment arises from an agreement between the taxpayer and the tax authority for a determined period. A legal fixed-rate assessment instead uses data established in advance by the legislature.

33. What is tax collection, or recovery, intended to accomplish?

To authorize the State’s annual revenues and expenditures through legislation
To calculate the tax due from the taxable matter and the applicable rate
To obtain payment of the tax debt through the required operations
To determine whether the tax was established under the correct procedure

To obtain payment of the tax debt through the required operations

Explanation

Tax recovery comprises the operations intended to obtain payment of the tax debt. Calculating the amount due is part of tax liquidation, rather than recovery.

34. An employer deducts tax from an employee’s income and sends that amount to the tax authority. How does withholding at source work in this situation?

The tax authority collects from the employee directly after the employer reports the income
The employer offsets the tax against a debt the State owes the employee
The tax authority waits until the employee’s tax debt becomes enforceable before collecting
The employer retains tax from the payment and remits it, acting as a person other than the taxpayer

The employer retains tax from the payment and remits it, acting as a person other than the taxpayer

Explanation

Withholding at source allows the tax authority to collect from someone other than the taxpayer, commonly the income payer, who deducts tax from the payment and remits it. Direct collection from the employee does not describe this withholding mechanism.

35. Which time limits distinguish a claim for tax from an action to recover an established tax debt?

The tax or additional tax may be claimed within three years of the declaration, while recovery is prescribed after ten years from when payment is due
The tax or additional tax may be claimed within ten years of the declaration, while recovery is prescribed after three years from when payment is due
The tax or additional tax may be claimed within ten years of when payment is due, while recovery is prescribed after three years from the declaration
The tax or additional tax may be claimed within three years of when payment is due, while recovery is prescribed after ten years from the declaration

The tax or additional tax may be claimed within three years of the declaration, while recovery is prescribed after ten years from when payment is due

Explanation

The tax or an additional amount may be claimed within three years from the declaration, while the action to recover the debt is prescribed after ten years from its due date. The other choices reverse or misassign the triggering dates and periods.

36. What may the tax authority do after a taxpayer fails to pay within fifteen days of receiving a reminder letter?

Begin judicial proceedings, seize the relevant property, and sell it at auction
Deduct the debt from any amount the State owes the taxpayer
Extend the reminder period automatically and suspend the debt’s enforceability
Cancel the tax debt and require the taxpayer to submit a new declaration

Begin judicial proceedings, seize the relevant property, and sell it at auction

Explanation

After the reminder allows fifteen days from receipt for payment, the authority may begin the judicial phase, seize the relevant property, and sell it at auction. Offsetting the debt against a State obligation is not the stated enforcement procedure.

37. What does tax litigation comprise?

The legal avenues for resolving disputes arising from the application of tax law
The administrative operations used to calculate the amount of tax payable
The procedures used to collect tax debts after they become due
The annual parliamentary process for authorizing State revenues and expenses

The legal avenues for resolving disputes arising from the application of tax law

Explanation

Tax litigation comprises the legal avenues for resolving disputes arising from the application of tax law. The calculation and collection of tax are administrative activities, not the definition of tax litigation.

38. A taxpayer disputes whether a tax was legally justified and correctly calculated, rather than how it is being collected. Which type of dispute is this?

A dispute over withholding, concerning deductions made from income payments
A dispute over budgeting, concerning the authorization of State expenditures
A dispute over recovery, concerning the execution of payment operations
A dispute over assessment, concerning the tax’s basis, amount, or assessment procedure

A dispute over assessment, concerning the tax’s basis, amount, or assessment procedure

Explanation

A dispute over assessment concerns the basis or amount of the tax, or the regularity of the assessment procedure. A recovery dispute concerns operations to execute payment, which is not the issue described.

39. Before bringing an assessment dispute before a judge, what must a taxpayer do?

Pay the full disputed amount and submit a claim to the court within ten years of the tax’s due date
Submit a written claim to the authority that established the tax within thirty calendar days of receiving the assessment notice
Submit a written claim to the collection authority within fifteen days of receiving a reminder letter
Request a budget review from Parliament within thirty working days of the tax declaration

Submit a written claim to the authority that established the tax within thirty calendar days of receiving the assessment notice

Explanation

Before going to court over an assessment, the taxpayer must submit a written claim to the authority that established the tax within thirty calendar days of receiving the assessment notice. The fifteen-day period relates to payment after a reminder, not to the prior claim.

40. While challenging an assessment, a taxpayer contests part of the tax but accepts the rest; the undisputed portion exceeds 30% of the contested amount. What payment rule applies?

The taxpayer must pay the undisputed portion because it exceeds 30% of the contested amount
The taxpayer must pay 30% of the contested amount because a challenge suspends the balance
The taxpayer must pay the entire assessment because a challenge is not permitted
The taxpayer may defer payment until the administrative claim and court appeal are decided

The taxpayer must pay the undisputed portion because it exceeds 30% of the contested amount

Explanation

Neither a prior claim nor a court appeal suspends payment, and the taxpayer must pay 30% of the contested amount or the undisputed portion if that amount is greater. Here, the undisputed portion exceeds 30%, so that portion is payable.

41. What does the annuality principle require for a public budget?

It must be revised whenever revenue estimates change.
It must be approved once for the full term of government.
It must be presented in a single law covering all public bodies.
It must be voted on and executed each year.

It must be voted on and executed each year.

Explanation

Annuality means that the budget is voted on and executed annually. Approval for a government’s full term would replace the yearly cycle with a multi-year one.

42. A multi-year public works program has been authorized, but construction will proceed over several years. Which budgetary instruments distinguish the authority to commit the program from funding payments as work proceeds?

Program authorizations set annual revenue limits, while payment credits determine the total project cost.
Payment credits permit commitments, while program authorizations fund payments as implementation proceeds.
Program authorizations permit commitments, while payment credits fund payments as implementation proceeds.
Payment credits authorize the full multi-year program, while program authorizations reimburse completed work.

Program authorizations permit commitments, while payment credits fund payments as implementation proceeds.

Explanation

Program authorizations allow Parliament to approve commitments for the entire multi-year program, while payment credits cover payments as the work or services are delivered. Reversing their functions confuses commitment authority with payment funding.

43. What does the universality principle require for public revenues and expenditures?

Expenditure is funded from a single tax while other revenues remain separate.
Each ministry retains its own revenues to pay for its authorized programs.
Revenues are pooled into one mass from which all expenditure is charged.
Each revenue source is assigned to a matching category of expenditure.

Revenues are pooled into one mass from which all expenditure is charged.

Explanation

Universality pools tax and other revenues into a single mass that finances all expenditure. Assigning each revenue source to a matching expenditure category is a different approach.

44. A budget records revenue after deducting collection costs and expenditure after subtracting reimbursements. Which budgetary rule does this violate?

The annuality principle, which requires yearly voting and execution.
The unity principle, which requires authorizations to appear in one law.
The rule of non-allocation, which requires all revenues to cover all expenditure.
The rule of non-compensation, which requires gross amounts to be recorded.

The rule of non-compensation, which requires gross amounts to be recorded.

Explanation

Non-compensation requires revenues and expenditures to be entered in the budget at their gross amounts, rather than offset against one another. Non-allocation concerns which revenues may cover expenditure, not how amounts are recorded.

45. A finance law presents accurate accounts without deliberate distortion, and its budget documents are consistent with other legal instruments. Which principle includes both requirements?

The sincerity principle, covering accuracy and consistency across documents.
The transparency principle, covering access to timely budget information.
The annuality principle, requiring yearly approval and execution.
The readability principle, organizing execution information into clear categories.

The sincerity principle, covering accuracy and consistency across documents.

Explanation

Sincerity entails accurate accounts without intent to distort the main balance and consistency between budget documents and other legal instruments. Transparency focuses on access to budget information rather than these two requirements.

46. Which practice most directly supports the transparency principle in public budgeting?

Voting on and executing the budget on an annual basis.
Organizing expenditure under titles, chapters, articles, programs, and actions.
Providing accessible, timely or continuous documentation and diverse information.
Ensuring accounts are accurate and consistent with other legal instruments.

Providing accessible, timely or continuous documentation and diverse information.

Explanation

Transparency requires accessible information about budget preparation and execution, supported by timely or continuous documentation and diverse information. Organizing expenditure into headings and levels primarily supports readability.

47. When preparing budget outlines, which set of factors must the Finance Minister take into account?

Exceptional measures, annual revenue totals, and final execution accounts.
Previous-year tax receipts, ministry requests, and payment-credit schedules.
Unavoidable expenditure, economic conditions, and plan forecasts.
Direct-tax sensitivity, legal consistency, and parliamentary authorizations.

Unavoidable expenditure, economic conditions, and plan forecasts.

Explanation

The Finance Minister must account for unavoidable expenditure, economic conditions, and plan forecasts when preparing budget outlines. Previous-year tax receipts alone are not the specified set of factors.

48. Using the automatic expenditure estimate, how should the 2025 budget be calculated from the 2024 budget?

Add both necessary adjustments and exceptional measures.
Subtract necessary adjustments and add exceptional measures.
Subtract both necessary adjustments and exceptional measures.
Add necessary adjustments and subtract exceptional measures.

Add necessary adjustments and subtract exceptional measures.

Explanation

The estimate is Budget2025=Budget2024+necessary adjustments−exceptional measures\text{Budget}_{2025}=\text{Budget}_{2024}+\text{necessary adjustments}-\text{exceptional measures}. Adding exceptional measures instead would reverse their role in the formula.

49. Why can revenue estimates not simply be based on the previous year's results?

Tax receipts depend on economic factors, with indirect taxes more sensitive than direct taxes.
Revenue estimates must use the latest known execution results, regardless of economic conditions.
Previous-year results exclude direct taxes, while indirect taxes are set by ministerial plans.
Tax receipts are fixed by prior-year spending, with direct taxes more sensitive than indirect taxes.

Tax receipts depend on economic factors, with indirect taxes more sensitive than direct taxes.

Explanation

Tax receipts depend on economic factors, so the previous year’s results cannot simply be carried forward; indirect taxes are more sensitive to economic conditions than direct taxes. The latest known execution results are relevant to the penultimate-year rule, but they do not eliminate the need to account for economic factors.

50. During budget discussions, what sequence of tasks does the Finance Minister undertake?

Prepare the revenue and expenditure statement, approve ministry requests, negotiate resources, then assess personal needs.
Negotiate sacrifices, finalize ministry drafts, evaluate resources, then publish the revenue and expenditure statement.
Combine ministerial drafts, negotiate sacrifices, publish execution results, then evaluate resources.
Evaluate resources, combine ministerial drafts with personal needs, prepare estimated revenue and expenditure, then negotiate sacrifices.

Evaluate resources, combine ministerial drafts with personal needs, prepare estimated revenue and expenditure, then negotiate sacrifices.

Explanation

The process involves evaluating resources, grouping ministerial draft budgets with the Finance Minister’s own needs, preparing an estimated revenue and expenditure statement, and negotiating sacrifices with other ministers. Publishing execution results is not part of the stated sequence.

51. What does the National Assembly's Finance Committee do when it reviews a finance bill?

It sets provisional budget allocations and authorizes the Treasury to make payments before the vote.
It may hear government members, consult other standing committees, and assess whether parliamentary amendments are admissible.
It conducts the plenary vote, then sends the adopted bill directly to the Council of Ministers.
It certifies the final accounts, audits public enterprises, and determines whether spending was efficient.

It may hear government members, consult other standing committees, and assess whether parliamentary amendments are admissible.

Explanation

The Finance Committee may hear government members, consult other standing committees, and assess the admissibility of amendments. Certifying final accounts is a control function of the Court of Accounts, not this committee's bill-review role.

52. After the National Assembly's Finance Committee has reviewed a finance bill, what is the next legislative sequence?

The bill goes to Congress for a reconsideration session, then returns to the Finance Committee for final certification.
The bill goes to the Senate for adoption before the National Assembly holds its plenary vote.
The bill goes to the National Assembly plenary for discussion and vote, then to the Senate for committee review and plenary adoption.
The bill is established by decree-law, then submitted to both chambers for a retrospective vote.

The bill goes to the National Assembly plenary for discussion and vote, then to the Senate for committee review and plenary adoption.

Explanation

After committee review, the bill proceeds to the National Assembly plenary for discussion and a vote, and then to the Senate for Finance Committee review and plenary adoption. The Senate does not act before the National Assembly's plenary consideration.

53. By what deadline must the finance law for the year be voted on?

No later than 15 days after the National Assembly's Finance Committee completes its review.
No later than the final day of the fiscal year.
No later than the end of the Congress session convened to reconsider the bill.
No later than 30 June.

No later than 30 June.

Explanation

The finance law for the year must be voted on no later than 30 June. The 15-day period relates to Congress's reconsideration process if the National Assembly has not ruled by that deadline.

54. If the National Assembly has not ruled on the finance bill by 30 June, what budgetary arrangement applies?

The Senate adopts the bill without further review or debate.
The Council of Ministers immediately establishes a new budget by decree-law.
The previous year's budget is resumed through provisional twelfths.
The previous year's budget remains suspended until Congress completes a vote.

The previous year's budget is resumed through provisional twelfths.

Explanation

When the National Assembly has not ruled by 30 June, the previous year's budget is resumed through provisional twelfths. A decree-law is used only if the bill remains unvoted after Congress has met to reconsider it.

55. What does a budget credit authorize?

The Treasury to hold a specified amount of cash for the administration's use.
An expenditure with a defined purpose and an authorized amount.
A public accountant to transfer funds between any spending categories.
An administrator to collect revenue without accounting supervision.

An expenditure with a defined purpose and an authorized amount.

Explanation

A budget credit is a legislative authorization for expenditure defined by both its purpose and its authorized amount. It grants spending authority, not a specified quantity of cash held by the Treasury.

56. A department still has a legal spending credit, but the Treasury has no cash available; what does this illustrate?

The credit is legal spending authority and is independent of the Treasury's available cash.
The credit guarantees that cash will be available as soon as an expense is committed.
The credit becomes invalid whenever public cash is insufficient to cover it.
The credit and available cash are equivalent measures of authorized expenditure.

The credit is legal spending authority and is independent of the Treasury's available cash.

Explanation

A credit is a legal authorization independent of available cash, so it can remain unspent when public cash is empty. The plausible confusion is treating a credit as cash itself, but the two describe different things.

57. A ministry wants to spend beyond its initial allocation; which statement correctly distinguishes the three types of credit?

Limiting credits may be exceeded with an accountant's approval, evaluative credits require new legislation, and provisional credits cannot increase.
Limiting credits cannot be exceeded without new legislative authorization, evaluative credits may be exceeded, and provisional credits may be increased.
Limiting credits may increase automatically, evaluative credits cannot be exceeded, and provisional credits require a parliamentary vote for any change.
Limiting and evaluative credits both require new legislative authorization to be exceeded, while provisional credits may increase.

Limiting credits cannot be exceeded without new legislative authorization, evaluative credits may be exceeded, and provisional credits may be increased.

Explanation

Limiting credits require new legislative authorization to be exceeded, evaluative credits may be exceeded, and provisional credits may be increased above their initial allocation. The alternative that subjects evaluative credits to new authorization confuses them with limiting credits.

58. A public project is authorized for commitment now, while funds for completed work are provided year by year; how are these credits classified?

Payment credits authorize the undertaking, while commitment credits fund payments as work is completed.
Commitment credits record available cash, while payment credits establish the project's legislative purpose.
Commitment credits authorize the undertaking, while payment credits fund payments as work is completed.
Payment credits authorize revenue collection, while commitment credits certify completed expenditure.

Commitment credits authorize the undertaking, while payment credits fund payments as work is completed.

Explanation

Commitment credits authorize the administration to undertake expenditure, while payment credits are granted each year to pay for work as it is completed. Reversing these roles mistakes permission to undertake a commitment for the yearly funding of payments.

59. Why is budget execution subject to control?

To prevent mismanagement or negligence, support regular administration, and check compliance with parliamentary authorizations.
To ensure that every public operation is reviewed exclusively by the Court of Accounts.
To replace parliamentary authorization with administrative discretion over spending.
To guarantee that all planned expenditure is completed within the fiscal year.

To prevent mismanagement or negligence, support regular administration, and check compliance with parliamentary authorizations.

Explanation

Control aims to prevent mismanagement or negligence, support regular administration, and verify compliance with the authorizations granted by Parliament. It checks those authorizations rather than replacing them with administrative discretion.

60. A public agent refuses to make a decision that falls within the agent's duties; what may a superior do under hierarchical control?

A superior may review the decision only after the Court of Accounts has issued a finding.
A superior may certify the agent's accounts but cannot intervene in the agent's decisions.
A superior may refer the matter to Parliament, which must make the decision itself.
A superior may impose a disciplinary sanction, overturn a subordinate's decision, or make the decision the subordinate improperly refuses to make.

A superior may impose a disciplinary sanction, overturn a subordinate's decision, or make the decision the subordinate improperly refuses to make.

Explanation

Hierarchical superiors may discipline agents, overturn subordinate decisions, or make decisions that a subordinate improperly refuses to make. This supervisory authority does not depend on a prior Court of Accounts finding.

61. Which set of activities describes the Court of Accounts' financial, regularity, and management controls?

It authorizes expenditure, commits funds, and makes payments as projects are completed.
It checks statement accuracy, reliability, and completeness; compliance with applicable standards; and economy, effectiveness, and efficiency.
It sets revenue forecasts, approves amendments, and determines the order of parliamentary votes.
It supervises public agents, imposes disciplinary sanctions, and replaces decisions they refuse to make.

It checks statement accuracy, reliability, and completeness; compliance with applicable standards; and economy, effectiveness, and efficiency.

Explanation

The Court of Accounts reviews the accuracy, reliability, and completeness of statements, compliance with applicable standards, and management in terms of economy, effectiveness, and efficiency. Supervising agents and imposing discipline are powers of hierarchical superiors, not these Court controls.

62. What does Parliament do through the settlement and budget-accountability law after budget execution?

It fixes final revenue and expenditure amounts, establishes final results, and makes necessary adjustments.
It audits the accuracy of financial statements and certifies the accounts of public bodies.
It informs Parliament during execution so that planned revenue and expenditure can be revised in advance.
It grants administrators authority to undertake expenditure and public accountants authority to pay.

It fixes final revenue and expenditure amounts, establishes final results, and makes necessary adjustments.

Explanation

Through the settlement and budget-accountability law, Parliament fixes final revenue and expenditure amounts, establishes final results, and makes necessary adjustments. Supplementary finance laws inform Parliament during execution, whereas the settlement law establishes results after execution.

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What does the organic criterion use to identify public finance?

The legal status of the actor.

Which author is associated with the public-power-prerogatives criterion?

M. Duverger.

What is political financial intermediation?

The reallocation of resources within society outside the market circuit.

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