VERIFIED
ANSWERS
Loksewa · PSC Exam Preparation Series
The Loksewa Gazette
Topic-wise MCQs on Management, Public Service, Public Policy, Citizen Charter, Civil Service & Government Financial Administration — with verified answers and short explanations.
This digest compiles Loksewa/PSC-style multiple choice questions across six thematic areas of Nepal's public administration syllabus. Click any option (A–D) to check your answer — the correct choice is highlighted along with a short explanation. Quick-fact items (Parts 3 & 5) use a "Show Answer" button instead, since they have no options. Use the navigation bar above to jump straight to any section.
📌 Note on Part 3 and Part 5: the source material provided full 4-option MCQs for Management, Functional Scope of Public Service, and Planning/Budgeting. For Public Policy and the remaining Civil Service topics, only condensed one-line fact questions were available — these are presented below in quick-fact format rather than fabricated 4-option questions, so every answer here stays true to the source.
Fundamentals of Management
45 MCQsManagement thought, motivation theories, leadership styles and organizing principles.
Q1. What is management concerned with?
- AInternal environment
- BExternal environment
- CInternal and external environment
- DNone of the above
Correct Answer: C — Internal and external environment
Management must coordinate an organization's internal resources while adapting to external economic, legal and social forces.
Q2. Who is known as the father of Scientific Management?
- AF.W. Taylor
- BFrederick Herzberg
- CLuther Gulick
- DF.W. Sayler
Correct Answer: A — F.W. Taylor
Taylor pioneered time-and-motion studies and systematic work methods in the early 1900s.
Q3. Who is regarded as the father of Modern Management?
- ALuther Gulick
- BHenri Fayol
- CF.W. Taylor
- DAbraham Maslow
Correct Answer: B — Henri Fayol
Fayol's 14 principles of management laid the foundation for modern administrative theory.
Q4. Who wrote the book General and Industrial Administration?
- AHenri Fayol
- BLuther Gulick
- CElton Mayo
- DF.W. Taylor
Correct Answer: A — Henri Fayol
Fayol published this seminal work in 1916, outlining his management principles and functions.
Q5. Who coined the word POSDCORB?
- AHerbert Simon
- BHenri Fayol
- CLuther Gulick
- DMcGregor
Correct Answer: C — Luther Gulick
Gulick used POSDCORB (Planning, Organizing, Staffing, Directing, Coordinating, Reporting, Budgeting) to describe executive functions.
Q6. Who said "Management is the art of getting work done through people"?
- AAdam Smith
- BF.W. Taylor
- CMary Parker Follett
- DHenri Fayol
Correct Answer: C — Mary Parker Follett
Follett emphasized the human, people-centered side of management practice.
Q7. What is the importance of direction in management?
- AClarifies responsibility and accountability
- BBasis for supervision and control
- CMaintains uniformity and clarity
- DAll of the above
Correct Answer: D — All of the above
Direction guides employee action while simultaneously enabling control, accountability and consistency.
Q8. Motivation belongs to which aspect?
- APsychological aspect
- BHuman aspect
- CBoth of the above
- DNone of the above
Correct Answer: C — Both of the above
Motivation involves both inner psychological drives and interpersonal, human-relations factors.
Q9. Who defined motivation as "encouraging people to work in order to achieve targeted objectives"?
- ADecenzo
- BRobbins
- CDecenzo and Robbins
- DDalton E. McFarland
Correct Answer: C — Decenzo and Robbins
This joint definition frames motivation as goal-directed encouragement of employee effort.
Q10. Who defined motivation as "the willingness to exert high effort toward organizational goals"?
- ADalton E. McFarland
- BDecenzo
- CRobbins
- DDecenzo and Robbins
Correct Answer: D — Decenzo and Robbins
Decenzo and Robbins linked motivation directly to effort intensity aimed at organizational objectives.
Q11. Who stated that motivation relates to the psychological factors that prompt employees to act?
- AKoontz & O'Donnell
- BDecenzo & Robbins
- CDalton E. McFarland
- DNone of the above
Correct Answer: B — Decenzo & Robbins
They framed motivation as psychologically driven behavior that pushes employees toward action.
Q12. Who proposed the Need Hierarchy Theory?
- AAbraham Maslow
- BKoontz & O'Donnell
- CDecenzo & Robbins
- DDalton E. McFarland
Correct Answer: A — Abraham Maslow
Maslow arranged human needs into a five-level pyramid from physiological to self-actualization.
Q13. According to Maslow, which need comes immediately after Physiological Needs?
- ASafety Needs
- BSocial Needs
- CSelf-actualization
- DAll of the above
Correct Answer: A — Safety Needs
Once basic survival needs are met, security and safety needs become the next priority.
Q14. According to Herzberg, the second level of wants is called—
- AMotivators
- BMotivation
- CSatisfaction
- DNone of the above
Correct Answer: A — Motivators
Herzberg's Two-Factor Theory separates Hygiene factors from Motivators that drive genuine job satisfaction.
Q15. Into how many parts did Clayton Alderfer classify human needs?
- AFour
- BThree
- CThree (ERG Theory)
- DOne
Correct Answer: C — Three (ERG Theory)
Alderfer's ERG Theory condenses Maslow's five levels into Existence, Relatedness and Growth.
Q16. Who classified human needs into Need for Achievement, Need for Power and Need for Affiliation?
- ADavid McClelland
- BKoontz & O'Donnell
- CDecenzo & Robbins
- DDalton E. McFarland
Correct Answer: A — David McClelland
McClelland's Acquired Needs Theory identifies these three learned motivational drivers.
Q17. Which scholar developed Expectancy Theory?
- AVictor Vroom
- BKoontz & O'Donnell
- CDecenzo & Robbins
- DDalton E. McFarland
Correct Answer: A — Victor Vroom
Vroom's theory holds that motivation depends on expected effort-performance-reward linkages.
Q18. Porter and Lawler's Model emphasizes—
- APerformance
- BReward
- CSatisfaction
- DAll of the above
Correct Answer: D — All of the above
Their expanded expectancy model links effort, performance, rewards and resulting satisfaction together.
Q19. Which is NOT among the 4 M's of management?
- AManpower
- BMoney
- CManagement
- DMethod
Correct Answer: C — Management
The classic 4 M's are Manpower, Money, Materials and Methods — Management itself is not one of them.
Q20. The aspect of management concerned with contextual application is best regarded as—
- AArt
- BScience
- CSocial Science
- DProfession
Correct Answer: D — Profession
Management is increasingly viewed as a profession requiring specialized knowledge applied to real situations.
Q21. Why is coordination necessary in an organization?
- ATo fulfill employees' demands
- BTo fulfill workers' demands
- CTo unite everyone's efforts toward organizational goals
- DTo avoid office work
Correct Answer: C — To unite everyone's efforts toward organizational goals
Coordination synchronizes individual and departmental efforts toward common organizational objectives.
Q22. Which body conducts overall administrative management inspection in Nepal?
- AMinistry of Federal Affairs and General Administration
- BMinistry of Home Affairs
- CAuditor General
- DPublic Service Commission
Correct Answer: D — Public Service Commission
The Public Service Commission oversees administrative management inspection in Nepal's civil service context here.
Q23. Which is a characteristic of management?
- AGoal-oriented
- BArt, science and profession
- CDynamic process
- DAll of the above
Correct Answer: D — All of the above
Management is simultaneously goal-directed, a blend of art/science/profession, and continuously evolving.
Q24. Who wrote The Wealth of Nations?
- ASujey
- BAdam Smith
- CHenry Gantt
- DF.W. Taylor
Correct Answer: B — Adam Smith
Adam Smith's 1776 work founded classical economic thought, including division of labor.
Q25. Punishment is what type of motivation?
- AMonetary
- BNon-monetary
- CBoth
- DNone of the above (Negative motivation)
Correct Answer: D — None of the above (Negative motivation)
Punishment discourages undesired behavior and is classified as negative rather than positive motivation.
Q26. Factors beginning from the zero level of motivation are called—
- AEsteem factors
- BMotivator factors
- CHygiene factors
- DX factors
Correct Answer: C — Hygiene factors
Herzberg's Hygiene factors prevent dissatisfaction but do not themselves actively motivate.
Q27. Effects of motivation include—
- AIncreased productivity
- BReduced absenteeism
- CPositive behavioral change
- DAll of the above
Correct Answer: D — All of the above
Well-motivated employees tend to be more productive, more present and behave more positively.
Q28. Fear and punishment are characteristics of—
- ADemocratic leadership
- BSituational leadership
- CAutocratic leadership
- DLaissez-faire leadership
Correct Answer: C — Autocratic leadership
Autocratic leaders rely on centralized control, often using fear and punishment to enforce compliance.
Q29. Literal meaning of motivation is—
- ATo work hard
- BTo be eager or willing to work
- CTo provide incentives
- DTo feed workers
Correct Answer: B — To be eager or willing to work
At its root, motivation means creating willingness and eagerness to act.
Q30. The word "Motivation" is derived from—
- AEnglish
- BFrench
- CGerman
- DLatin (Movere)
Correct Answer: D — Latin (Movere)
"Motivation" traces to the Latin verb "movere," meaning to move.
Q31. Which sequence of Maslow's hierarchy is correct?
- APhysiological → Social → Safety → Ego
- BPhysiological → Safety → Social → Ego → Self-actualization
- CSafety → Physiological → Social → Ego
- DEgo → Safety → Physiological → Social
Correct Answer: B — Physiological → Safety → Social → Ego → Self-actualization
Maslow's pyramid rises from basic survival needs up to self-actualization at the top.
Q32. Full form of ERG
- AExistence, Relatedness and Growth
- BEmergency Response Group
- CEmployee Resource Group
- DEnergy Regeneration Group
Correct Answer: A — Existence, Relatedness and Growth
Alderfer's ERG Theory groups needs into Existence, Relatedness and Growth categories.
Q33. Who proposed Theory X and Theory Y?
- ADouglas McGregor
- BMichael McGregor
- CDouglas Della
- DNone
Correct Answer: A — Douglas McGregor
McGregor contrasted a pessimistic Theory X view of workers with an optimistic Theory Y view.
Q34. Theory X assumes employees are—
- ALazy and require close supervision
- BSelf-motivated
- CCreative
- DResponsible
Correct Answer: A — Lazy and require close supervision
Theory X assumes workers dislike work and need strict control and supervision.
Q35. Which is a principle of organization?
- AGoal attainment
- BMotivation
- CAssigning tasks
- DCoordination
Correct Answer: D — Coordination
Coordination is a core organizing principle that unifies effort across the structure.
Q36. "Motivation" originated from which Latin word?
- AMotive
- BMotivator
- CMoto
- DMovere
Correct Answer: D — Movere
The Latin "movere" (to move) is the linguistic root of "motivation."
Q37. "Motivation is the process of stimulating people to action" was stated by—
- AM.E. Dimock
- BStahl
- CDalton McFarland
- DNone of the above
Correct Answer: A — M.E. Dimock
This definition is commonly attributed to M.E. Dimock in public administration literature.
Q38. Maslow introduced the Need Hierarchy Theory in—
- A1943 AD
- B1944 AD
- C1950 AD
- DNone
Correct Answer: A — 1943 AD
Maslow published "A Theory of Human Motivation" introducing the hierarchy of needs in 1943.
Q39. Which is NOT a function of an employees' union?
- AFormulating plans
- BGiving advice
- CConducting research
- DPaying employees' salaries
Correct Answer: D — Paying employees' salaries
Paying salaries is a management/payroll function, not a role of an employees' union.
Q40. Which is NOT delegated in delegation of authority?
- AWork
- BDuty
- CAccountability
- DAuthority
Correct Answer: C — Accountability
A manager can delegate work, duty and authority, but ultimate accountability always remains with them.
Q41. Plans help in—
- ADecision-making
- BControl
- CMotivation
- DResolving all disputes (NOT a direct benefit)
Correct Answer: D — Resolving all disputes (NOT a direct benefit)
Plans aid decisions, control and direction, but they do not automatically resolve every dispute.
Q42. Future course of action is determined by—
- APlan
- BRoadmap
- CLegal provision
- DBudget
Correct Answer: A — Plan
A plan is essentially a predetermined course of action for achieving future objectives.
Q43. A plan repeated many times is called—
- ALong-term plan
- BStanding (Continuing) plan
- CShort-term plan
- DAll
Correct Answer: B — Standing (Continuing) plan
Standing plans are used repeatedly for recurring situations, such as policies and procedures.
Q44. Leadership where the leader leaves decisions entirely to followers is—
- ADemocratic
- BAutocratic
- CCharismatic
- DLaissez-faire leadership
Correct Answer: D — Laissez-faire leadership
Laissez-faire leaders give followers near-complete freedom in decision-making with minimal direction.
Q45. Bureaucracy Theory was proposed by—
- AF.L. Brech
- BMax Weber
- CWoodrow Wilson
- DHenri Fayol
Correct Answer: B — Max Weber
Weber's Bureaucracy Theory emphasizes hierarchy, formal rules and impersonal administration.
Functional Scope of Public Service & Citizen Charter
25 MCQsCitizen Charter provisions, Good Governance Act/Rules, and the scope of state functions.
Q1. Which of the following are mentioned in a Citizen Charter?
- ANature of the service
- BProcedure for obtaining the service
- CTime required for service delivery
- DAll of the above
Correct Answer: D — All of the above
A Citizen Charter lists the service, the process to obtain it and the expected delivery time together.
Q2. What is the maximum compensation amount fixed by the Citizen Charter with Compensation Directive?
- ARs. 5,000
- BRs. 6,000
- CRs. 7,000
- DRs. 8,000
Correct Answer: B — Rs. 6,000
The Compensation Directive fixes Rs. 6,000 as the maximum payable compensation for service delay.
Q3. Within how many days after delay in service delivery must a compensation claim be filed?
- A1 day
- B2 days
- C3 days
- D4 days
Correct Answer: B — 2 days
A citizen must file a compensation claim within 2 days of the service delay.
Q4. When did the Good Governance (Management and Operation) Act, 2064 come into force?
- A2064/09/18
- B2064/10/23
- C2064/10/18
- D2064/10/28
Correct Answer: B — 2064/10/23
The Act formally commenced on 2064/10/23 B.S.
Q5. When did the Good Governance (Management and Operation) Rules, 2065 come into force?
- A2064/10/23
- B2065/10/18
- C2065/09/18
- D2065/10/28
Correct Answer: B — 2065/10/18
The accompanying Rules took effect on 2065/10/18 B.S.
Q6. According to the Good Governance Act, who chairs the High-Level Direction Committee?
- AMinister of Federal Affairs and General Administration
- BFinance Minister
- CHome Minister
- DPrime Minister
Correct Answer: D — Prime Minister
The Prime Minister chairs the top-level committee that directs good governance implementation.
Q7. Who prepares the working procedure for operating Mobile (Ghumti) Services?
- AFinance Minister
- BMinistry of Federal Affairs and General Administration
- CPresident
- DGovernment of Nepal
Correct Answer: B — Ministry of Federal Affairs and General Administration
MoFAGA is responsible for designing procedures for mobile/doorstep service delivery.
Q8. According to the Good Governance Act and Rules, who coordinates the Central Monitoring and Evaluation Committee?
- APrime Minister
- BChief Secretary
- CFinance Minister
- DGovernment of Nepal
Correct Answer: B — Chief Secretary
The Chief Secretary coordinates central-level monitoring and evaluation of good governance measures.
Q9. Where should the Citizen Charter be displayed?
- AAt the front of the office
- BAt the rear of the office
- CInside the office at a clearly visible place
- DOutside the office
Correct Answer: C — Inside the office at a clearly visible place
It must be posted inside the office where citizens can easily see it.
Q10. Which of the following is NOT mandatory to disclose in a Citizen Charter?
- AType of service
- BResponsible official's name, post and room number
- CWhether compensation is available
- DGrievance-hearing officer's room number only
Correct Answer: D — Grievance-hearing officer's room number only
Disclosing only the grievance officer's room number, without the other required details, is not sufficient/mandatory as a standalone item.
Q11. If a letter must be forwarded to a higher office, within how many days should it be forwarded?
- A1 day
- B2 days
- C3 days
- D4 days
Correct Answer: A — 1 day
Correspondence requiring forwarding to a higher office must move within 1 day.
Q12. If an office can decide a matter itself, within how many days should it be disposed of?
- A5 days
- B7 days
- C9 days
- D10 days
Correct Answer: A — 5 days
Matters within an office's own authority should be settled within 5 days.
Q13. How many members are there in the District-Level Compensation Determination Committee?
- A1
- B2
- C3
- D4
Correct Answer: C — 3
The District-Level Compensation Determination Committee consists of 3 members.
Q14. Ensuring fair representation of all citizens in political, social and economic spheres is called:
- AInclusion
- BSocial Audit
- CGood Governance
- DCitizen Charter
Correct Answer: A — Inclusion
Inclusion refers to fair representation of all groups across political, social and economic life.
Q15. Declaring commitment to achieve the highest level of public service is the ________ of the Citizen Charter.
- AObjective
- BGoal
- CFeature
- DLegal basis
Correct Answer: C — Feature
This declared commitment is described as a defining feature of the Citizen Charter.
Q16. "Functional scope of public services" broadly refers to:
- AThe range of functions, sectors and services delivered by the State to citizens
- BSalary scale of civil servants
- CRuling party ideology
- DNumber of ministries
Correct Answer: A — The range of functions, sectors and services delivered by the State to citizens
It covers the full breadth of functions and services the State delivers to the public.
Q17. Which of the following falls within the functional scope of public services?
- ARegulatory functions
- BWelfare and development functions
- CService delivery functions
- DAll of the above
Correct Answer: D — All of the above
Public service functions span regulation, welfare/development and direct service delivery.
Q18. Public functions are broadly categorized into sovereign (core) functions and:
- AService-oriented (development/welfare) functions
- BCommercial functions
- CPolitical functions
- DReligious functions
Correct Answer: A — Service-oriented (development/welfare) functions
The two broad categories are sovereign/core functions and service-oriented welfare functions.
Q19. Which of the following is a sovereign (core) function of the State?
- ADefense, foreign affairs and maintenance of law and order
- BOperating restaurants
- CManufacturing consumer electronics
- DOperating commercial banks
Correct Answer: A — Defense, foreign affairs and maintenance of law and order
Defense, foreign affairs and law and order are inherent, non-transferable state functions.
Q20. The main spirit of the Citizen Charter is to make service delivery:
- ACitizen-centric, transparent and accountable
- BRuler-oriented
- CSlow and procedure-heavy
- DOptional and discretionary
Correct Answer: A — Citizen-centric, transparent and accountable
Its core spirit is putting citizens first through transparent, accountable service delivery.
Q21. A Citizen Charter mainly strengthens which principle of good governance?
- AAccountability and transparency toward service recipients
- BCentralization
- CPolitical patronage
- DAdministrative secrecy
Correct Answer: A — Accountability and transparency toward service recipients
It reinforces accountability and transparency of public offices toward the citizens they serve.
Q22. The original UK Citizen's Charter was based on six principles. Which of the following is one of them?
- APutting things right (Redress)
- BAdministrative secrecy
- CCentralization
- DPolitical loyalty
Correct Answer: A — Putting things right (Redress)
"Putting things right" (redress for failures) was one of the UK Charter's original six principles.
Q23. New Public Management (NPM) was introduced by:
- AMargaret Thatcher
- BChristopher Hood
- CRonald Reagan
- DAdam Smith
Correct Answer: B — Christopher Hood
Christopher Hood is widely credited with articulating New Public Management as an academic concept.
Q24. "Service First" principles were launched by Tony Blair in 1998. How many principles were there?
- ASix
- BNine
- CTen
- DFourteen
Correct Answer: B — Nine
The UK's "Service First" initiative under Tony Blair set out nine standards in 1998.
Q25. Which country first implemented the Digital-First Governance Programme?
- ADenmark
- BIsrael
- CEstonia
- DUnited Kingdom
Correct Answer: C — Estonia
Estonia pioneered comprehensive digital-first e-governance, becoming a global reference model.
Public Policy
11 Quick-Fact MCQsConcept, process and instruments of public policy — presented as quick facts (full 4-option questions were not available in the source material).
F1. Father of Public Policy
Answer: Thomas R. Dye
Dye's definitional work shaped how "public policy" is studied in political science.
F2. "Government chooses to do or not to do" is a definition given by
Answer: Thomas Dye
Dye's famous definition frames public policy as any deliberate government choice — action or inaction.
F3. First stage of the Policy Cycle
Answer: Agenda Setting
Issues must be recognized and placed on the government's agenda before anything else can happen.
F4. Policy implementation is mainly carried out by
Answer: Bureaucracy
The permanent civil service machinery executes policies once they are adopted.
F5. Policy Evaluation comes at which stage of the cycle?
Answer: Last
Evaluation reviews outcomes only after a policy has been implemented for some time.
F6. Fiscal Policy is prepared by
Answer: Ministry of Finance
Fiscal policy tools — taxation and spending — fall under the Finance Ministry's mandate.
F7. Monetary Policy is prepared by
Answer: Nepal Rastra Bank
As the central bank, NRB formulates and administers monetary policy.
F8. An example of Redistributive Policy
Answer: Social Security
Redistributive policies shift resources between groups, such as social security schemes.
F9. An example of Regulatory Policy
Answer: Minimum Wage Law
Regulatory policies impose rules and standards, such as mandated minimum wages.
F10. The Public Policy Process (correct order)
Answer: Agenda Setting → Formulation → Adoption → Implementation → Evaluation
This five-stage cycle is the standard model of how public policy is made and reviewed.
F11. Public Policy mainly aims at
Answer: Public Interest
At its core, public policy exists to serve the collective interest of citizens.
Government Planning, Budgeting & Accounting System
72 MCQsPlanning bodies, budget types, revenue, expenditure, audit and financial accountability.
Q1. Which institution approves the National Periodic Plan?
- AMinistry of Finance
- BNational Planning Commission
- CNational Development Council (NDC)
- DOffice of the Prime Minister
Correct Answer: C — National Development Council (NDC)
The National Development Council gives final approval to the National Periodic Plan.
Q2. The Vice-Chairperson of the National Planning Commission is appointed by:
- APresident
- BParliament
- CGovernment of Nepal (Council of Ministers)
- DPublic Service Commission
Correct Answer: C — Government of Nepal (Council of Ministers)
The Council of Ministers appoints the NPC Vice-Chairperson.
Q3. Which type of budget emphasizes economy, efficiency and effectiveness (3Es)?
- ALine-item Budget
- BIncremental Budget
- CPerformance Budget
- DTraditional Budget
Correct Answer: C — Performance Budget
Performance Budgeting is built around achieving economy, efficiency and effectiveness in spending.
Q4. Zero-Based Budgeting (ZBB) was first introduced by:
- APeter Drucker
- BPeter A. Pyhrr
- CHenri Fayol
- DLuther Gulick
Correct Answer: B — Peter A. Pyhrr
Peter A. Pyhrr developed Zero-Based Budgeting in the early 1970s.
Q5. The government budget mainly consists of:
- ARevenue and Expenditure
- BCapital and Recurrent Expenditure
- CFinancing Arrangement
- DAll of the above
Correct Answer: D — All of the above
A government budget covers revenue, capital/recurrent expenditure and financing arrangements together.
Q6. Which expenditure creates permanent public assets?
- AAdministrative expenditure
- BSalary expenditure
- CCapital expenditure
- DOperational expenditure
Correct Answer: C — Capital expenditure
Capital expenditure builds long-lasting physical assets like roads and buildings.
Q7. Which of the following is a source of government revenue?
- ATax revenue
- BNon-tax revenue
- CForeign grants
- DAll of the above
Correct Answer: D — All of the above
Government revenue comes from taxes, non-tax sources and foreign grants combined.
Q8. Which tax contributes the highest share to Nepal's tax revenue?
- ACustoms Duty
- BIncome Tax
- CValue Added Tax (VAT)
- DExcise Duty
Correct Answer: C — Value Added Tax (VAT)
VAT is the single largest contributor to Nepal's overall tax revenue.
Q9. The fiscal year of Nepal begins on:
- ABaisakh 1
- BJestha 15
- CAshar 1
- DShrawan 1
Correct Answer: D — Shrawan 1
Nepal's fiscal year runs from Shrawan 1 to Ashar end of the following year.
Q10. Which of the following is NOT a source of public revenue?
- ATax
- BFees
- CGrants
- DPersonal Savings
Correct Answer: D — Personal Savings
Personal savings belong to individuals, not the state, so they are not public revenue.
Q11. Government accounting is primarily maintained for:
- AAccountability
- BFinancial control
- CDecision-making
- DAll of the above
Correct Answer: D — All of the above
Government accounting supports accountability, control and informed decision-making simultaneously.
Q12. Which constitutional body submits the annual audit report to the President?
- AMinistry of Finance
- BFinancial Comptroller General Office
- CAuditor General
- DPublic Accounts Committee
Correct Answer: C — Auditor General
The Auditor General submits the annual audit report to the President.
Q13. The President submits the Auditor General's report to:
- APrime Minister
- BSupreme Court
- CFederal Parliament
- DNational Planning Commission
Correct Answer: C — Federal Parliament
The President tables the Auditor General's report before the Federal Parliament.
Q14. Which committee examines irregularities pointed out by the Auditor General?
- AFinance Committee
- BState Affairs Committee
- CPublic Accounts Committee (PAC)
- DParliamentary Hearing Committee
Correct Answer: C — Public Accounts Committee (PAC)
The Public Accounts Committee scrutinizes irregularities flagged in audit reports.
Q15. Budget implementation begins after:
- AApproval by the Ministry of Finance
- BRecommendation of the National Planning Commission
- CPassage of the Appropriation Act
- DRecommendation of the Auditor General
Correct Answer: C — Passage of the Appropriation Act
The Appropriation Act legally authorizes spending, so implementation starts once it passes.
Q16. Which budget system allocates funds based on expected results?
- ALine-item Budget
- BPerformance Budget
- CTraditional Budget
- DLump-sum Budget
Correct Answer: B — Performance Budget
Performance Budgeting ties fund allocation to expected outputs and results.
Q17. Which office authorizes government payments through the treasury system?
- ANepal Rastra Bank
- BPublic Accounts Committee
- CFinancial Comptroller General Office (FCGO)
- DAuditor General
Correct Answer: C — Financial Comptroller General Office (FCGO)
FCGO operates the treasury system and authorizes government payments.
Q18. Which principle requires public expenditure to be authorized by law?
- ATransparency
- BEfficiency
- CLegality
- DParticipation
Correct Answer: C — Legality
The legality principle requires that no public spending occurs without legal authorization.
Q19. Mid-Term Expenditure Framework (MTEF) generally covers:
- A1 year
- B2 years
- C3 years
- D5 years
Correct Answer: C — 3 years
MTEF is a rolling 3-year framework linking planning priorities with resources.
Q20. Which document legally authorizes government expenditure?
- AFinance Bill
- BBudget Speech
- CAppropriation Act
- DEconomic Survey
Correct Answer: C — Appropriation Act
The Appropriation Act is the legal instrument authorizing government expenditure.
Q21. The Finance Bill mainly deals with:
- APublic procurement
- BNational planning
- CTaxation and revenue measures
- DForeign policy
Correct Answer: C — Taxation and revenue measures
The Finance Bill sets out taxation and revenue-raising measures for the fiscal year.
Q22. The Economic Survey is generally presented:
- AAfter the budget
- BDuring the fiscal year
- CBefore the annual budget
- DAfter the Appropriation Act
Correct Answer: C — Before the annual budget
The Economic Survey is presented just before the annual budget to review past performance.
Q23. Which ministry publishes the Economic Survey?
- ANational Planning Commission
- BOffice of the Prime Minister
- CMinistry of Finance
- DNepal Rastra Bank
Correct Answer: C — Ministry of Finance
The Ministry of Finance publishes the Economic Survey each year.
Q24. Which of the following is a primary objective of public financial management?
- AEfficient use of public resources
- BFiscal discipline
- CTransparency and accountability
- DAll of the above
Correct Answer: D — All of the above
PFM aims jointly at efficiency, fiscal discipline, transparency and accountability.
Q25. Which organization prepares Nepal's annual Red Book (Budget Estimates)?
- ANational Planning Commission
- BPublic Accounts Committee
- CMinistry of Finance
- DOffice of the Auditor General
Correct Answer: C — Ministry of Finance
The Ministry of Finance compiles and publishes the annual Red Book of budget estimates.
Q26. Which document contains detailed estimates of government expenditure?
- AEconomic Survey
- BFinance Bill
- CRed Book
- DWhite Paper
Correct Answer: C — Red Book
The Red Book provides itemized, detailed estimates of government expenditure.
Q27. Which budget is prepared for a period of one fiscal year?
- ALong-term Budget
- BPeriodic Budget
- CAnnual Budget
- DStrategic Budget
Correct Answer: C — Annual Budget
An Annual Budget covers exactly one fiscal year's revenue and expenditure plan.
Q28. Who is responsible for releasing the approved budget to spending units?
- ANational Planning Commission
- BOffice of the Prime Minister
- CMinistry of Finance
- DPublic Accounts Committee
Correct Answer: C — Ministry of Finance
The Ministry of Finance releases approved budget allocations to spending agencies.
Q29. Which office maintains the Treasury Single Account (TSA) system in Nepal?
- ANepal Rastra Bank
- BMinistry of Finance
- CFinancial Comptroller General Office (FCGO)
- DAuditor General
Correct Answer: C — Financial Comptroller General Office (FCGO)
FCGO operates and maintains Nepal's Treasury Single Account system.
Q30. Budget implementation mainly begins after:
- ABudget speech
- BFinance Bill
- CAppropriation Act comes into force
- DEconomic Survey
Correct Answer: C — Appropriation Act comes into force
Implementation legally starts once the Appropriation Act comes into force.
Q31. Which expenditure is directly related to development projects?
- ARecurrent expenditure
- BAdministrative expenditure
- CCapital expenditure
- DOperational expenditure
Correct Answer: C — Capital expenditure
Capital expenditure funds development projects and asset creation.
Q32. Which expenditure includes salary, pension and office expenses?
- ACapital expenditure
- BDevelopment expenditure
- CRecurrent expenditure
- DContingency expenditure
Correct Answer: C — Recurrent expenditure
Recurrent expenditure covers day-to-day costs like salaries, pensions and office operations.
Q33. Which institution formulates Nepal's fiscal policy?
- ANepal Rastra Bank
- BNational Planning Commission
- CMinistry of Finance
- DPublic Service Commission
Correct Answer: C — Ministry of Finance
The Ministry of Finance is responsible for formulating fiscal policy.
Q34. Monetary policy in Nepal is formulated by:
- AMinistry of Finance
- BNational Planning Commission
- CNepal Rastra Bank
- DOffice of the Prime Minister
Correct Answer: C — Nepal Rastra Bank
Nepal Rastra Bank, the central bank, formulates and implements monetary policy.
Q35. Which document presents the government's taxation proposals?
- AEconomic Survey
- BBudget Speech
- CFinance Bill
- DRed Book
Correct Answer: C — Finance Bill
The Finance Bill lays out proposed taxation and revenue measures.
Q36. Which budget approach requires every activity to be justified from the beginning?
- AIncremental Budgeting
- BPerformance Budgeting
- CZero-Based Budgeting (ZBB)
- DTraditional Budgeting
Correct Answer: C — Zero-Based Budgeting (ZBB)
ZBB requires every expense to be justified afresh each budget cycle, starting from zero.
Q37. The main objective of budgetary control is:
- AIncrease expenditure
- BIncrease taxation
- CEnsure efficient use of public funds
- DIncrease foreign loans
Correct Answer: C — Ensure efficient use of public funds
Budgetary control exists to ensure public funds are used efficiently and as planned.
Q38. Which is NOT a characteristic of a good budget?
- ATransparency
- BAccountability
- CFlexibility
- DPolitical favoritism
Correct Answer: D — Political favoritism
Political favoritism undermines fairness and is not a feature of a sound budget.
Q39. Which of the following is a source of capital financing?
- AInternal loan
- BExternal loan
- CForeign grant
- DAll of the above
Correct Answer: D — All of the above
Capital financing can be sourced from internal loans, external loans and foreign grants.
Q40. The Mid-Term Expenditure Framework (MTEF) links:
- APlanning and Budgeting
- BBudget and Performance
- CResources and Priorities
- DAll of the above
Correct Answer: D — All of the above
MTEF connects planning, budgeting, performance and resource prioritization together.
Q41. Which institution monitors implementation of national development plans?
- APublic Accounts Committee
- BNepal Rastra Bank
- CNational Planning Commission
- DElection Commission
Correct Answer: C — National Planning Commission
The National Planning Commission monitors how national development plans are carried out.
Q42. Which constitutional principle requires government expenditure to be accountable to Parliament?
- ARule of Law
- BTransparency
- CLegislative Control over Public Finance
- DParticipation
Correct Answer: C — Legislative Control over Public Finance
Legislative control over public finance ensures Parliament oversees government spending.
Q43. Which committee mainly reviews budget implementation?
- AState Affairs Committee
- BFinance Committee
- CPublic Accounts Committee
- DParliamentary Hearing Committee
Correct Answer: C — Public Accounts Committee
The Public Accounts Committee is the main parliamentary body reviewing budget implementation.
Q44. Which document reviews the economic performance of the previous fiscal year?
- ARed Book
- BFinance Bill
- CEconomic Survey
- DWhite Paper
Correct Answer: C — Economic Survey
The Economic Survey reviews the economy's performance over the previous fiscal year.
Q45. Nepal's public accounting system mainly follows:
- APure Cash Basis
- BPure Accrual Basis
- CModified Cash Basis Accounting (MCBA)
- DDouble Entry System
Correct Answer: C — Modified Cash Basis Accounting (MCBA)
Nepal's government accounts are largely maintained on a Modified Cash Basis.
Q46. The Auditor General submits the audit report annually to:
- APrime Minister
- BMinistry of Finance
- CPresident
- DSupreme Court
Correct Answer: C — President
By constitutional provision, the Auditor General's annual report goes to the President.
Q47. Which body scrutinizes the Auditor General's report after it is tabled in Parliament?
- AFinance Ministry
- BNational Planning Commission
- CPublic Accounts Committee
- DSupreme Court
Correct Answer: C — Public Accounts Committee
The Public Accounts Committee scrutinizes the tabled audit report in detail.
Q48. Which expenditure generally creates fixed assets?
- ASalary
- BPension
- COffice Operation
- DCapital Expenditure
Correct Answer: D — Capital Expenditure
Capital Expenditure is specifically directed toward creating fixed, long-term assets.
Q49. Which of the following is NOT a function of the National Planning Commission?
- AFormulating periodic plans
- BMonitoring development programs
- CEvaluating national plans
- DAuditing government accounts
Correct Answer: D — Auditing government accounts
Auditing government accounts is the Auditor General's role, not the NPC's.
Q50. Which institution is responsible for external audit of all government offices?
- AMinistry of Finance
- BFinancial Comptroller General Office
- CPublic Accounts Committee
- DOffice of the Auditor General
Correct Answer: D — Office of the Auditor General
The Office of the Auditor General conducts external audits of all government offices.
Q51. Which institution prepares Nepal's Medium-Term Expenditure Framework (MTEF)?
- ANepal Rastra Bank
- BOffice of the Auditor General
- CMinistry of Finance
- DPublic Service Commission
Correct Answer: C — Ministry of Finance
The Ministry of Finance prepares the Medium-Term Expenditure Framework.
Q52. Which institution coordinates planning and budgeting at the national level?
- AMinistry of Home Affairs
- BNational Planning Commission (NPC)
- CElection Commission
- DPublic Service Commission
Correct Answer: B — National Planning Commission (NPC)
The National Planning Commission coordinates national-level planning and budgeting.
Q53. Which of the following is the main objective of development planning?
- AIncrease inflation
- BReduce government control
- CPromote sustainable economic and social development
- DIncrease imports
Correct Answer: C — Promote sustainable economic and social development
Development planning aims at achieving sustainable economic and social progress.
Q54. Which of the following is a feature of a good budget?
- ASimplicity
- BTransparency
- CFlexibility
- DAll of the above
Correct Answer: D — All of the above
A good budget is simultaneously simple, transparent and flexible.
Q55. Which of the following is NOT a principle of public expenditure?
- AEconomy
- BEfficiency
- CEquity
- DPolitical favoritism
Correct Answer: D — Political favoritism
Political favoritism contradicts sound principles of economical, efficient and equitable spending.
Q56. The main objective of government accounting is to:
- AIncrease tax collection
- BIncrease government borrowing
- CEnsure proper recording and accountability of public funds
- DReduce public expenditure
Correct Answer: C — Ensure proper recording and accountability of public funds
Government accounting exists chiefly to record and account for public funds properly.
Q57. Which organization issues accounting standards for Nepal's public sector?
- ANepal Rastra Bank
- BAuditor General
- CFinancial Comptroller General Office (FCGO)
- DPublic Accounts Committee
Correct Answer: C — Financial Comptroller General Office (FCGO)
FCGO sets and issues public-sector accounting standards for Nepal.
Q58. Internal audit of government offices is mainly conducted by:
- AOffice of the Auditor General
- BPublic Accounts Committee
- CFinancial Comptroller General Office (FCGO)
- DSupreme Court
Correct Answer: C — Financial Comptroller General Office (FCGO)
FCGO carries out internal audit functions across government offices.
Q59. External audit of government accounts is carried out by:
- AMinistry of Finance
- BNepal Rastra Bank
- COffice of the Auditor General
- DNational Planning Commission
Correct Answer: C — Office of the Auditor General
External audit of government accounts is a constitutional duty of the Auditor General.
Q60. Which committee mainly discusses audit irregularities in Parliament?
- AFinance Committee
- BAgriculture Committee
- CPublic Accounts Committee (PAC)
- DEducation Committee
Correct Answer: C — Public Accounts Committee (PAC)
The Public Accounts Committee is the dedicated forum for discussing audit irregularities.
Q61. Which Act governs public financial procedures in Nepal?
- ACivil Service Act
- BGood Governance Act
- CFinancial Procedures and Fiscal Responsibility Act
- DLocal Government Operation Act
Correct Answer: C — Financial Procedures and Fiscal Responsibility Act
This Act sets out Nepal's core public financial procedures and fiscal responsibility rules.
Q62. Which institution prepares the Economic Survey?
- ANational Planning Commission
- BMinistry of Finance
- CNepal Rastra Bank
- DOffice of the Prime Minister
Correct Answer: B — Ministry of Finance
The Ministry of Finance prepares and releases the Economic Survey annually.
Q63. Which institution publishes the Red Book?
- ANational Planning Commission
- BMinistry of Finance
- CFinancial Comptroller General Office
- DOffice of the Auditor General
Correct Answer: B — Ministry of Finance
The Ministry of Finance publishes the Red Book of detailed budget estimates.
Q64. Which budget emphasizes outputs and performance indicators?
- ALine-item Budget
- BTraditional Budget
- CPerformance Budget
- DCash Budget
Correct Answer: C — Performance Budget
Performance Budgeting is centered on measurable outputs and performance indicators.
Q65. The budget is generally classified into:
- ARevenue Budget
- BCapital Budget
- CFinancing
- DAll of the above
Correct Answer: D — All of the above
A national budget is typically classified into revenue, capital and financing components.
Q66. Which institution authorizes the withdrawal of money from the Federal Consolidated Fund?
- AMinistry of Finance
- BFederal Parliament through the Appropriation Act
- CNational Planning Commission
- DOffice of the Auditor General
Correct Answer: B — Federal Parliament through the Appropriation Act
Withdrawals from the Consolidated Fund require Parliament's authorization via the Appropriation Act.
Q67. Government financial accountability is primarily ensured through:
- AAudit
- BParliamentary oversight
- CFinancial reporting
- DAll of the above
Correct Answer: D — All of the above
Financial accountability rests on audit, parliamentary oversight and transparent reporting together.
Q68. Which of the following is an instrument of fiscal policy?
- ATaxation
- BGovernment expenditure
- CPublic borrowing
- DAll of the above
Correct Answer: D — All of the above
Fiscal policy uses taxation, spending and borrowing as its main instruments.
Q69. The constitutional principle that no tax shall be imposed except by law is known as:
- AFinancial transparency
- BBudget discipline
- CPrinciple of legality of taxation
- DFiscal decentralization
Correct Answer: C — Principle of legality of taxation
This principle ensures taxes can only be levied through duly enacted law.
Q70. Which institution is responsible for monitoring the implementation of the federal budget?
- AMinistry of Home Affairs
- BMinistry of Finance
- CPublic Service Commission
- DElection Commission
Correct Answer: B — Ministry of Finance
The Ministry of Finance monitors how the federal budget is implemented.
Q71. Which of the following is an objective of public financial management?
- AFiscal discipline
- BEfficient allocation of resources
- CEffective service delivery
- DAll of the above
Correct Answer: D — All of the above
PFM pursues fiscal discipline, efficient resource allocation and effective service delivery together.
Q72. Which statement best defines a government budget?
- AA record of past government expenditure
- BA report prepared by the Auditor General
- CA financial plan showing estimated revenue and expenditure for a fiscal year
- DA report submitted by the Public Accounts Committee
Correct Answer: C — A financial plan showing estimated revenue and expenditure for a fiscal year
A budget is fundamentally a forward-looking financial plan of estimated revenue and expenditure.
Civil Service — Remaining Topics
20 Quick-Fact MCQsAdditional civil service facts — reservation quotas, tenures, promotion criteria and personnel administration — presented as quick facts (full 4-option questions were not available in the source material).
F1. Father of Civil Service (origin of the concept)
Answer: China (Origin)
Imperial China's examination-based bureaucracy is widely cited as the historical origin of civil service systems.
F2. Nepal's Civil Service Act was enacted in
Answer: 2049 B.S.
The Civil Service Act, 2049 remains the core law governing Nepal's civil servants.
F3. The Public Service Commission was established in
Answer: 2008 B.S.
PSC was established in 2008 B.S. to conduct fair recruitment into public service.
F4. Number of Civil Services in Nepal
Answer: 11 Services
Nepal's civil service is organized into 11 distinct services.
F5. Number of Gazetted Classes in Nepal's civil service
Answer: 5
Gazetted officers are graded across 5 classes/levels.
F6. Reservation quota for Women in civil service recruitment
Answer: 33%
Inclusive recruitment reserves 33% of quota seats for women candidates.
F7. Reservation quota for Backward Area candidates
Answer: 9%
Backward area candidates receive a 9% reservation quota in recruitment.
F8. Civil Service Day is observed on
Answer: Bhadra 22
Nepal marks Civil Service Day annually on Bhadra 22.
F9. Property details must be submitted by civil servants within
Answer: 60 Days
Civil servants must declare property details within 60 days as required by law.
F10. Paternity Leave entitlement for civil servants
Answer: 21 Days
Male civil servants are entitled to 21 days of paternity leave.
F11. Tenure of the Chief Secretary
Answer: 3 Years
The Chief Secretary, Nepal's top civil servant, generally serves a 3-year tenure.
F12. Minimum age for entry into Gazetted Service
Answer: 21 Years
A candidate must be at least 21 years old to enter gazetted service.
F13. Promotion marks allocated for Seniority
Answer: 16
Seniority carries 16 marks in the promotion evaluation system.
F14. Promotion marks allocated for Performance
Answer: 40
Performance evaluation carries the largest weight, 40 marks, in promotions.
F15. The Promotion Committee is headed by
Answer: Secretary (MoFAGA)
The Secretary of MoFAGA chairs the departmental promotion committee.
F16. Political activities by civil servants are
Answer: Prohibited
Civil servants must remain politically neutral and are barred from political activity.
F17. Civil servants are ultimately accountable to
Answer: the Government
Civil servants serve and are accountable to the government of the day.
F18. The main personnel management agency for civil servants
Answer: Ministry of Federal Affairs & General Administration
MoFAGA is the central personnel agency overseeing Nepal's civil service.
F19. The "Additional" (Miscellaneous) Group of civil servants belongs to
Answer: MoFAGA
Employees in the Additional/Miscellaneous Group fall under MoFAGA's administration.
F20. Public Service recruitment is conducted by
Answer: the Public Service Commission
PSC is the constitutional body responsible for all public service recruitment exams.
Quick Revision Summary — Topic Wise
100 One-LinersThe highest-yield one-line facts across every topic, for a fast final revision before the exam.
🇳🇵 Constitution & Governance
🏛 Civil Service
👨💼 Public Service & Citizen Charter
📜 Public Policy
📈 Management
📊 Planning, Budgeting & Accounting
⭐ Super Important — Most Repeated Loksewa MCQs
- Article 56 → State Structure
- Article 242 → Public Service Commission
- President Age → 45 Years
- HoR Members → 275
- National Assembly → 59
- Constitutional Bodies → 13
- Civil Services → 11
- Women Reservation → 33%
- Citizen Charter → UK (1991)
- Citizen Charter Nepal → 2055 BS
- Good Governance Act → 2064 BS
- Good Governance Rules → 2065 BS
- Father of Scientific Management → F.W. Taylor
- Father of Modern Management → Henri Fayol
- POSDCORB → Luther Gulick
- Maslow → Need Hierarchy
- McGregor → Theory X & Y
- Max Weber → Bureaucracy Theory
- NPC Chair → Prime Minister
- Budget Day → Jestha 15
- Auditor General Tenure → 6 Years
- Public Accounts Committee → Examines Audit Report
- MTEF → 3 Years
- VAT → Largest Tax Revenue
- Fiscal Policy → Ministry of Finance
- Monetary Policy → Nepal Rastra Bank
- Public Policy Cycle starts with → Agenda Setting
- Policy implemented by → Bureaucracy
- Performance Budget → Results
- Zero-Based Budgeting → Peter A. Pyhrr
