1) Public Sector covers which of the following areas?

Non-financial corporations sector

3) PFM architecture covers which of the following components?

4) PFM cycle doesn't cover which of the following process?

5) Which one of the following is not a primary objective of Public Financial Management (PFM)?

Maintaining aggregate fiscal discipline

Strategic allocation of resources

Ensure operational fiscal efficiency

6) Which one of the following is a fiscal policy?

Medium term expenditure framework

7) Which is the guiding law for public finance management?

National Natural Resources and Fiscal Commission Act, 2017

The Financial Procedure and Fiscal Accountability Act 2019

Intergovernmental Fiscal Commission Act, 2017

8) Local Government Operations Act, 2017 covers which of the following areas?

Accountability and responsibility

Note: Correct answer provided was F, which isn't an option

9) Which institution in Nepal is responsible for formulating and monitoring fiscal policy?

National Planning Commission

Financial Comptroller General Office

National Natural Resources and Fiscal Commission

10) Which institution is responsible for central budget execution recording and reporting?

Financial comptroller general office

District treasury controller office

National Natural Resources and Fiscal Commission

11) Which ministry is the main coordinating body responsible for PFM in Nepal at provincial level?

Provincial Planning Commission

Ministry of Planning and Economic Affairs (आर्थिक मामिला तथा योजना मन्त्रालय)

Office of the Chief Minister and Council of Minister

Ministry of Internal Affairs (आन्तरिकर मामिला मन्त्रालय)

12) Which of the following IT system handles budgeting?

13) Which of the following system/software is used by the local government?

Public demand for accountability

Increased political instability

Note: Correct answer provided was E, which isn't an option

15) Which one of the following is major tool for PFM assessment?

Local level institutional Self-assessment (LISA)

Public Expenditure and financial accountability (PEFA)

Tax Administration and Diagnostics Assessment Tool (TADAT)

16) What is the purpose of the Annual Appropriation Act?

To authorize government expenditures

Note: Correct answer provided was B, but A seems more accurate

17) What is the role of the National Natural Resources and Fiscal Commission in Nepal?

Monitoring government expenditure

Determining revenue sharing formulas

Distributing grants to Province and local level

18) How many dimensions are there in the PEFA assessment?

Transparency and comprehensiveness, Linking budgeting planning and policy, Control oversight and accountability (Para 6.2)

19) Which of the following acts as tool for implementing PFM reform

Development action plan (DAP)

Note: Correct answer provided was E, which isn't an option

20) How do PFM reforms contribute to strengthening governance?

By increasing government borrowing

By reducing transparency in financial management

By promoting accountability and efficiency in resource allocation

By expanding public expenditure without constraints

21) What aspect of PFM does the Financial Procedure and Fiscal Accountability Act regulate?

Budget formulation and execution

Revenue allocation mechanisms

Public Procurement Monitoring Office

Institute of Chartered Accountant of Nepal

23) What is the main purpose of PFM Reform Strategy?

To increase public sector wages

To strengthen the management of public finance

To reduce government spending

24) What is the main focus of efficient public service delivery?

Reducing public sector size

Ensuring effective resource utilization

Expanding government programs

Expenditure management mechanism

Cash and bank management tool

1. PFM’s integrated approach doesn’t encompass which of the following

Re-engenering PFM Reforms

Complete budget cycle components

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2. PFM is commonly conceived as a cycle of following number of phases.

Planning, Budgeting, Executing, Accounting, Monitoring, Auditing

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3. Which of the following doesn’t primarily fall under the phase of PFM Cycle.

Policy/Strategy/Plan Preparation

Inspection of Climatic Change

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4. Which of the following is not the key objective of PFM

Debt reduction of Public Entity.

Maintain aggregate fiscal discipline

Ensure strategic allocation of resources.

Ensure efficient service delivery.

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5. Which of the following is not the objective of PFM

Transparency and accountability in government operation

Strengthening internal control system

Assist in safeguarding and utilization of public property

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6. Which of the following is not the characteristics of Sound PFM

Linking budgeting, planning and policy

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PFM systems are composed of upstream, midstream, and downstream processes.

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8. Process of Budget Execution falls under which function/process of PFM system

It's essential to understand the upstream functions where the political leaders and top bureaucratic officials are involved in the decision-making process whereas the Midstream/downstream function involves the execution of the policies.

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9. Which one is the latest PEFA assessment done by Nepal and published on 30 April, 2024

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10. The Consolidated fund has been established for which level of the government.

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11. Which of the following body is responsible for just and equitable distribution of natural and fiscal resources among three tiers of government.

National Natural Resources and Fiscal Commission (NNRFC)

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12. Which of the following serves as a principal law for planning, budget, formulating, executing, accounting, reporting and auditing.

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13. Which of the following coordinating function doesn’t rest with FCGO.

Budget Preparation and Execution

The coordination functions for budget preparation and execution rests with MoF and NPC
whereas accounting, reporting, internal control & audit rest with the FCGO,

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14. Which is the main focal agency to drive provincial level plans, policies and programs

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1. What is the main objective of Public Financial Management (PFM)?

To increase government spending

To ensure performance, transparency, and accountability in the use of public money

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Public Economic and Financial Accountability

Public Expenditure and Financial Accountability

Public Efficiency and Financial Assessment

Public Evaluation and Fiscal Analysis

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4. What year was the first PEFA assessment conducted in Nepal?

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5. Which agency is the leading institution for PFM reform in Nepal?

Office of the Prime Minister

National Planning Commission

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6. The first phase of PFM reform strategy included how many development action plans?

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7. Which system is used in Nepal for optimizing cash management and tracking spending processes?

Treasury Single Account (TSA)

Revenue Management Information System (RMIS)

Integrated Financial Management Information System (IFMIS)

Financial Management Information System (FMIS)

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Resource Management Information System

Revenue Management Information System

Risk Management Information System

Regulatory Management Information System

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9. The second phase of PFM reform strategy covers which years?

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10. Which international standards are being progressively implemented for public sector accounting in Nepal?

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11. What is the primary goal of the PEFA framework?

To increase government revenue

To assess transparency and accountability of PFM performance

To decrease government expenditures

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12. What year was the PEFA Secretariat established in Nepal?

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13. Which system provides a comprehensive framework for PFM performance analysis with 94 dimensions?

Public Expenditure and Financial Accountability (PEFA) PEFA provides a framework for assessment of transparency and accountability of overall PFM performance of the government. It is a methodology for assessing public financial management performance which identifies 94 dimensions across 31 public financial management indicators in 7 broad areas of activity (pillars).

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14. What is the role of the Financial Comptroller General Office (FCGO) in Nepal's PFM system?

To manage the treasury and oversee budget execution

To develop financial regulations

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15. Which document outlined the detailed roadmap for Nepal’s interim IFMIS?

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16. How often are PEFA assessments conducted in Nepal?

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17. Which of the following is not a key operation of the IFMIS?

Budget preparation and execution

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18. What does CGAS stand for in Nepal's PFM system?

Central Government Accounting System

Comprehensive Government Accounting System

Computerized Government Accounting System

Common Government Accounting System

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19. Which agency is responsible for external audit in Nepal's public sector?

Office of the Auditor General (OAGN)

Financial Comptroller General Office

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20. What is the main purpose of the Treasury Single Account (TSA)?

To manage the government’s debt

To consolidate and optimize cash management

To oversee public procurement

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21. Which phase of the PFM Reform Strategy recognized the importance of an integrated approach?

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22. The Multi-Donor Trust Fund (MDTF) supports which project in Nepal?

Strengthening Public Financial Management (SPFM)

Revenue Management Information System (RMIS)

Integrated Financial Management Information System (IFMIS)

Nepal Public Sector Accounting Standards (NPSAS)

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23. The PFM Reform Steering Committee is chaired by whom?

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24. Which of the following is not a major PFM reform stakeholder institution at the federal level in Nepal?

Office of the Prime Minister

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25. What is the main focus of the Public Procurement Monitoring Office (PPMO)?

To oversee and regulate public procurement

To implement financial reporting standards

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26. What is one of the key achievements of the first phase of PFM reform strategy in Nepal?

Establishment of the National Planning Commission

Implementation of the Treasury Single Account (TSA)

Privatization of public enterprises

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27. What is the role of the National Natural Resource and Fiscal Commission in Nepal's PFM system?

To manage natural resources and fiscal policies

To oversee public procurement

To develop financial regulations

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28. Which of the following is a cash management optimization system in Nepal?

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Nepal Public Sector Accounting Standards

National Public Sector Audit Standards

Nepal Private Sector Accounting Standards

National Procurement Standards and Accounting System

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30. What is the primary purpose of the Integrated Financial Management Information System (IFMIS)?

To streamline tax collection processes

To manage public financial operations comprehensively

To enhance procurement efficiency

To reduce government expenditure

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31. Which organization supports the modernization of external audit in Nepal’s public sector?

Office of the Auditor General (OAGN)

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32. What does LMBIS stand for in the context of Nepal’s PFM?

Local Management Budget Information System

Line Ministry Budget Information System

Long-term Management Budget Information System

Legislative Ministry Budget Information System

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33. The IFMIS is envisioned to fully manage which of the following operations?

Cash forecasting and liquidity management

Human resource management

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1) Periodic plan includes which of the follow process:

Based on the Guidelines of NPC and the Ministry of Finance, the Budget Committee of the
central entity sends departmental ceilings and the Department sets each office's ceiling. The
ceiling follows a top-down approach while budget entry into the line ministry budget information
system (LMBIS) is a bottom-up approach.

3) Which is not correct for planning by LG, selection combination of following options:
1. LG consults with stakeholders
2. Project implementation schedule preparation
3. Refusal of conditions in the grant of Federation and province
4. Detachment with non-governmental sectors

5) Which of the following budget approaches has the highest autonomy to spend and responsibility for service delivery?

Note: Correct answer given was E, which isn't an option

6) Which of the items does financing captures

changes in cash, deposits, securities and equity held for liquidity purposes

7) Investment (share or loan) in Nepal Oil Corporation by government of Nepal is to be budgeted under

8) Interest and principal of public debt payment should be categorized as per the COFOG, select the appropriate combination: <br>
1. Interest and principal of public debt is classified into 701 general public service<br>
2. Interest and principal of public debt is classified into 704 economic affairs<br>
3. Interest expenses is categorized into 701 general public service and principal payment is not part of COFOG<br>
4. Interest and principal payment of public debt are not part of COFOG

Classification of Function of Government (COFOG), is a detailed classification of the government functions or socioeconomic objectives to achieve by spending budget. For instance 701 General Public Service, 702 Defense, 703 Public Security and Peace, 704 Economic Affairs, 705 Environmental Protection, 706 Housing and Community Facilities, 707 Health, 708 Recreational, Culture and Religion, 709 Education, 710 Social Security. COFOG is also used to distinguish between individual (IS) and collective (CS) goods and services. In Nepal, ministry and division changes often take place, which changes the administrative classification. But, COFOG ignores the organizational and administrative classification and gives the consistent trends in government spending over the time period.

9) Which of the following tools are known as rolling budget framework?

Medium Term Expenditure Framework

Mid Term Evaluation Framework

Medium Term Evaluation Function

10) What does unallocated/budget (Abanda) and Virement does in budget practice:
1. Reduce the budget reliability
2. increase the budget expenditure
Select the correct option

combination of various resources

12) Is it possible to proceed with any activity during the budget execution which is not in the LMBIS? Select the correct option

based on decision of office chief

virement or program amendment for certain activity

13) MoF often reduces the target of budget (revenue and expenditure) during mid term evaluation. Which one is correct?
1) Reduction of the budget is mandatory and valid by MoF
2) During the PEFA assessment, revised target is comparable with actual
3) M &E evaluates physical and financial progress
4) Each ministry shall send their M & E of program and budget to MoF

14) Which central entity is not directly involved for cash projection for federation?

15) Select options which are not correct in the case of public debt management of Nepal:
A) SNG are borrowing external (foreign) loan
B) Government debt to GDP ratio is far below from the debt sustainability perspective.
C) Bilateral external loan is less expensive than multilateral external loan
D) Public debt is a monetary policy tool rather than a fiscal policy tool.

16) Select the right choices:
A) GoN's Equalization grant is released by respective DTCO to the local level quarterly based on documents submitted by local levet
B) Complementary grant can be contributed up to 50% by GoN to SNG's infrastructure cost
C) Special grant can be transferred up to 50% by GoN to SNG's selected activity cost.
D) Conditional grant if not used within the fiscal year have to be refunded by the recipient within the FY.

17) Which one of the following is not a fiscal transfer?

18) Which one is correct option regarding following arguments?
1. Foreign aid aims to fulfill gap of the foreign currency and technology transfer
2. Budgetary support is better than project based foreign aid
3. Foreign aid is necessary evil for Nepal
4. DP has also responsibility for low disbursement in Nepal
5. In some project, counter part fund is not allocated which delays the project.
6. Blending financing is accepted by the foreign aid policy of Nepal.

19) Which one of the following is not a mode of disbursement in case of a foreign grant?

20) Increasing trend of recurrent expenditure along with fiscal discipline is one of major challenge in the budgetary process. Beside the statement select Incorrect option relating to budgetary process.
1. Frequent turnover and capacity of employees hampering budget process
2. Weak project management
3. Court intervention expedites the budget process

Who is responsible for issuing debt securities on behalf of the government?

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What system is used by the federal government for the expenditure side?

RD-RAS (Revenue Administration Support)

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What is the main objective of performance-based budgeting?

Focus on output and outcomes

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The act of thinking ahead and setting goals

The present socio-economic status of the country

A specific and detailed outline or strategy for achieving a particular goal or objective

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What needs to be considered during budget preparation?

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What is a risk related to construction in PPPs?

Material adverse government actions

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Strong monitoring and evaluation mechanism

System of identifying risk and developing strategy

Analysis of the situation including strength, weaknesses, opportunities and threats

Sufficient human, financial, technological resources

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