Question 2 a. As a student of Public Finance, discuss the political and economic implications of government borrowing. [10] b. [5] i. What constitutes the debt burden? [10] Question 3 ii. Carefully analyze the efficiency and equity implications of a debt burden for Lesotho.

1. Why fiscal administrations important in government?

Explain 2 alternative methods that you can think of to raise government finance other thanborrowing or incurring a budget deficit.

The two main categories of government revenue are: a. Income from Public Secior Bodies and Dividends. b.Revenue Receipts and Capital Receipts c. Tax Revenue and Income from loans d. Direct Taxes and Indirect Taxes A "Vote on Account" as stated by Brandy occurs? a. If the budget has not yet been approved by parliament prior to the start of the budget year, and a temporary authorization is made. b. When the Auditor General vote for the approval of a budget that was prepared, and paid by the government according to stipulated regulations and guidelines. c. When the Accountant General vote for the payments of budgeted sums from the government's main bank account to the respective ministries and departments d. When Parliamentarians vote for the approval of the national budget. Which of the following general appropriation rules are incorrect? 1. Transfer between budget items are generally stated in the financial regulations. 2. Budget may not include authorization for forward commitments…