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PUB1504: Public Resource Management I
OCT/NOV Examination 2026 Preparation Guide
Covering Past Papers: 2023 – 2025
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
Public Administration and Management — UNISA
Exam Revision Guide
PUB1504
Module Code:
Public Resource Management I
Module Name:
Oct/Nov 2023, Oct/Nov 2024, Oct/Nov 2025
Papers Covered:
Oct/Nov 2026
Exam Target:
100 marks per paper
Total Marks:
2 Hours
Duration:
This guide covers all examinable topics from three years of past papers.
Focus on understanding the principles, not just memorising answers.
⋆ Exam Revision Notes | PUB1504 | 2023–2026
,PUB1504 | Exam Revision Guide Public Resource Management I
PAPER 1 — OCTOBER/NOVEMBER 2025 EXAMINATION
PUB1504: Public Resource Management I | 100 Marks | 2 Hours
2025 — Section A: Compulsory Short Questions [40 marks]
Question 1 (a) [5 marks]
Question: Define the concept of public resources and distinguish between financial and
non-financial public resources. Provide ONE example of each. [5]
Answer:
[KEY CONCEPT]
Public resources are all assets, funds, personnel, infrastructure, information, and
authority that the state controls in order to deliver services and achieve public policy
goals on behalf of citizens.
• Financial public resources: Money and monetary instruments that government raises
through taxation, borrowing, grants, or other revenue sources and allocates through a
budget. These are the most visible and directly manageable type.
Example: Revenue collected through Value Added Tax (VAT) at 15% and appropriated in
the national budget for education spending.
• Non-financial public resources: Tangible and intangible assets other than money that
government uses to render services, including land, buildings, equipment, human capital,
and intellectual property.
Example: A state hospital building owned by the Department of Health; or the skilled
personnel (nurses, doctors) employed in the public health system.
[EXAM TIP]
Always give an example from the South African public sector context — examiners
reward local relevance. Mention specific legislation like the PFMA (Public Finance
Management Act 1 of 1999) when discussing financial resources, as it is the primary
statute governing their management.
Page 2 of 41 ⋆
,PUB1504 | Exam Revision Guide Public Resource Management I
Question 1 (b) [5 marks]
Question: Explain the concept of fiscal policy and outline TWO instruments govern-
ment uses to implement it. [5]
Answer:
Fiscal policy is the deliberate use of government revenue (taxation) and expenditure deci-
sions to influence the overall performance of the economy, manage aggregate demand, and
achieve macroeconomic goals such as full employment, price stability, and economic growth.
Two instruments of fiscal policy:
1. Taxation (Revenue instrument): Government adjusts tax rates or the tax base to ei-
ther stimulate or cool down economic activity. Lowering personal income tax leaves more
disposable income with households, which boosts consumer spending. Increasing corporate
tax yields additional revenue to fund social services.
2. Government expenditure (Spending instrument): By increasing spending on infras-
tructure, social grants, or public employment programmes, government injects money into
the economy and creates a multiplier effect. Cutting expenditure, conversely, reduces the
fiscal deficit but may slow growth in the short run.
[EXAMPLE]
During South Africa’s post-COVID economic recovery (2020–2022), the National Trea-
sury expanded expenditure through the Social Relief of Distress (SRD) grant — a
direct application of expansionary fiscal policy.
Question 1 (c) [5 marks]
Question: What is the budget cycle? List and briefly describe its FOUR main stages.
[5]
Answer:
Page 3 of 41 ⋆
,PUB1504 | Exam Revision Guide Public Resource Management I
[KEY CONCEPT]
The budget cycle (also called the budget process) is the continuous, recurring series of
activities through which government plans, approves, executes, and evaluates the use of
public funds across a financial year.
The four stages:
1. Budget preparation (Planning stage): Line departments identify their resource needs
and prepare budget submissions. The National Treasury issues budget circulars setting
ceilings and guidelines. Ministers negotiate allocations with Treasury.
2. Budget approval (Legislative stage): The executive presents the budget to Parlia-
ment. The Appropriation Bill is debated by portfolio committees, amended if necessary,
and passed as the Appropriation Act, giving legal authority to spend.
3. Budget implementation/execution: Departments draw on their allocated funds to
deliver programmes and services. Internal control systems, supply chain management pro-
cesses, and accounting officers ensure spending remains within approved limits.
4. Budget evaluation (Auditing and oversight): At year-end, the Auditor-General au-
dits departmental financial statements. Parliament’s Standing Committee on Public Ac-
counts (SCOPA) scrutinises findings, and departments account for their performance.
Question 1 (d) [5 marks]
Question: Identify and briefly explain THREE sources of public revenue in South
Africa. [5]
Answer:
• Tax revenue: The primary source. SARS administers direct taxes (personal income tax,
corporate income tax, capital gains tax) and indirect taxes (VAT, customs and excise du-
ties, fuel levies). In 2024/25 personal income tax alone contributed about 38% of total
revenue.
• Non-tax revenue: Fees, fines, licences, and interest received from loans. Examples in-
clude vehicle licence fees, court fines, interest earned on cash holdings, and dividends from
state-owned entities.
• Borrowing (Loan revenue): When expenditure exceeds revenue, government borrows
Page 4 of 41 ⋆
,PUB1504 | Exam Revision Guide Public Resource Management I
through issuing government bonds (domestic) or taking foreign loans. This creates pub-
lic debt, which must be managed carefully to avoid a debt spiral. In 2024, South Africa’s
gross loan debt stood at over 70% of GDP.
Question 1 (e) [5 marks]
Question: Distinguish between internal audit and external audit in the public sector,
with specific reference to South Africa. [5]
Answer:
Table 1: Internal vs External Audit in the South African Public Sector
Internal Audit External Audit
Aspect
An independent appraisal func- An independent examination
Definition tion within the organisation of financial statements by an
evaluating controls, risk manage- outside body to express an audit
ment, and governance opinion
Internal audit unit of the de- The Auditor-General of South
Who conducts it partment, overseen by an Audit Africa (AGSA)
Committee
Section 38(1)(a) of the PFMA; Constitution s.188; Public Audit
Legal basis Treasury Regulation 27 Act 25 of 2004
Continuous throughout the year Annually, after financial year-
Frequency end
Accounting officer and Audit Parliament; public
Audience Committee
Internal audit reports and rec- Audit opinion (unqualified, qual-
Output ommendations ified, adverse, disclaimer)
Question 1 (f ) [5 marks]
Question: What is the Medium Term Expenditure Framework (MTEF) and why
is it important for public resource planning in South Africa? [5]
Answer:
[KEY CONCEPT]
The Medium Term Expenditure Framework (MTEF) is a rolling three-year gov-
ernment spending plan that sets departmental expenditure ceilings for the current year
Page 5 of 41 ⋆
, PUB1504 | Exam Revision Guide Public Resource Management I
and two outer years. It is produced annually alongside the national budget.
Importance for public resource planning:
• Predictability: Departments know their funding envelopes in advance, allowing them to
plan multi-year programmes and capital projects with confidence.
• Fiscal discipline: By setting hard ceilings, the MTEF prevents departments from over-
committing resources and links spending to the government’s macroeconomic targets.
• Alignment with priorities: The MTEF connects budget allocations directly to strate-
gic government priorities set out in the Medium Term Strategic Framework (MTSF), mak-
ing it easier to track whether money is following policy.
• Improved service delivery: Long-term spending signals allow departments to recruit
staff, procure equipment, and plan infrastructure projects that take more than one year to
complete.
Question 1 (g) [5 marks]
Question: List FIVE general principles of sound financial management that every ac-
counting officer in a national department must observe in terms of the PFMA. [5]
Answer:
Section 38 of the PFMA Act 1 of 1999 places accounting officers at the centre of financial
management. The five core principles are:
1. Legality: All spending must have legal authority – money may only be spent as autho-
rised by the Appropriation Act and relevant legislation. No spending outside appropriated
funds.
2. Economy: Resources must be procured at the lowest possible cost consistent with quality
requirements. Waste is a violation of the principle.
3. Efficiency: Outputs must be maximised from available inputs. The ratio of outputs to
inputs must be optimised – doing more with the same or less.
4. Effectiveness: Programmes must achieve their intended policy outcomes. Efficient use of
resources is only meaningful if it actually delivers the desired results for communities.
5. Transparency and accountability: Financial information must be accurate, timely,
and accessible. Accounting officers must report to Parliament and Treasury within stipu-
Page 6 of 41 ⋆
]]
PUB1504: Public Resource Management I
OCT/NOV Examination 2026 Preparation Guide
Covering Past Papers: 2023 – 2025
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
Public Administration and Management — UNISA
Exam Revision Guide
PUB1504
Module Code:
Public Resource Management I
Module Name:
Oct/Nov 2023, Oct/Nov 2024, Oct/Nov 2025
Papers Covered:
Oct/Nov 2026
Exam Target:
100 marks per paper
Total Marks:
2 Hours
Duration:
This guide covers all examinable topics from three years of past papers.
Focus on understanding the principles, not just memorising answers.
⋆ Exam Revision Notes | PUB1504 | 2023–2026
,PUB1504 | Exam Revision Guide Public Resource Management I
PAPER 1 — OCTOBER/NOVEMBER 2025 EXAMINATION
PUB1504: Public Resource Management I | 100 Marks | 2 Hours
2025 — Section A: Compulsory Short Questions [40 marks]
Question 1 (a) [5 marks]
Question: Define the concept of public resources and distinguish between financial and
non-financial public resources. Provide ONE example of each. [5]
Answer:
[KEY CONCEPT]
Public resources are all assets, funds, personnel, infrastructure, information, and
authority that the state controls in order to deliver services and achieve public policy
goals on behalf of citizens.
• Financial public resources: Money and monetary instruments that government raises
through taxation, borrowing, grants, or other revenue sources and allocates through a
budget. These are the most visible and directly manageable type.
Example: Revenue collected through Value Added Tax (VAT) at 15% and appropriated in
the national budget for education spending.
• Non-financial public resources: Tangible and intangible assets other than money that
government uses to render services, including land, buildings, equipment, human capital,
and intellectual property.
Example: A state hospital building owned by the Department of Health; or the skilled
personnel (nurses, doctors) employed in the public health system.
[EXAM TIP]
Always give an example from the South African public sector context — examiners
reward local relevance. Mention specific legislation like the PFMA (Public Finance
Management Act 1 of 1999) when discussing financial resources, as it is the primary
statute governing their management.
Page 2 of 41 ⋆
,PUB1504 | Exam Revision Guide Public Resource Management I
Question 1 (b) [5 marks]
Question: Explain the concept of fiscal policy and outline TWO instruments govern-
ment uses to implement it. [5]
Answer:
Fiscal policy is the deliberate use of government revenue (taxation) and expenditure deci-
sions to influence the overall performance of the economy, manage aggregate demand, and
achieve macroeconomic goals such as full employment, price stability, and economic growth.
Two instruments of fiscal policy:
1. Taxation (Revenue instrument): Government adjusts tax rates or the tax base to ei-
ther stimulate or cool down economic activity. Lowering personal income tax leaves more
disposable income with households, which boosts consumer spending. Increasing corporate
tax yields additional revenue to fund social services.
2. Government expenditure (Spending instrument): By increasing spending on infras-
tructure, social grants, or public employment programmes, government injects money into
the economy and creates a multiplier effect. Cutting expenditure, conversely, reduces the
fiscal deficit but may slow growth in the short run.
[EXAMPLE]
During South Africa’s post-COVID economic recovery (2020–2022), the National Trea-
sury expanded expenditure through the Social Relief of Distress (SRD) grant — a
direct application of expansionary fiscal policy.
Question 1 (c) [5 marks]
Question: What is the budget cycle? List and briefly describe its FOUR main stages.
[5]
Answer:
Page 3 of 41 ⋆
,PUB1504 | Exam Revision Guide Public Resource Management I
[KEY CONCEPT]
The budget cycle (also called the budget process) is the continuous, recurring series of
activities through which government plans, approves, executes, and evaluates the use of
public funds across a financial year.
The four stages:
1. Budget preparation (Planning stage): Line departments identify their resource needs
and prepare budget submissions. The National Treasury issues budget circulars setting
ceilings and guidelines. Ministers negotiate allocations with Treasury.
2. Budget approval (Legislative stage): The executive presents the budget to Parlia-
ment. The Appropriation Bill is debated by portfolio committees, amended if necessary,
and passed as the Appropriation Act, giving legal authority to spend.
3. Budget implementation/execution: Departments draw on their allocated funds to
deliver programmes and services. Internal control systems, supply chain management pro-
cesses, and accounting officers ensure spending remains within approved limits.
4. Budget evaluation (Auditing and oversight): At year-end, the Auditor-General au-
dits departmental financial statements. Parliament’s Standing Committee on Public Ac-
counts (SCOPA) scrutinises findings, and departments account for their performance.
Question 1 (d) [5 marks]
Question: Identify and briefly explain THREE sources of public revenue in South
Africa. [5]
Answer:
• Tax revenue: The primary source. SARS administers direct taxes (personal income tax,
corporate income tax, capital gains tax) and indirect taxes (VAT, customs and excise du-
ties, fuel levies). In 2024/25 personal income tax alone contributed about 38% of total
revenue.
• Non-tax revenue: Fees, fines, licences, and interest received from loans. Examples in-
clude vehicle licence fees, court fines, interest earned on cash holdings, and dividends from
state-owned entities.
• Borrowing (Loan revenue): When expenditure exceeds revenue, government borrows
Page 4 of 41 ⋆
,PUB1504 | Exam Revision Guide Public Resource Management I
through issuing government bonds (domestic) or taking foreign loans. This creates pub-
lic debt, which must be managed carefully to avoid a debt spiral. In 2024, South Africa’s
gross loan debt stood at over 70% of GDP.
Question 1 (e) [5 marks]
Question: Distinguish between internal audit and external audit in the public sector,
with specific reference to South Africa. [5]
Answer:
Table 1: Internal vs External Audit in the South African Public Sector
Internal Audit External Audit
Aspect
An independent appraisal func- An independent examination
Definition tion within the organisation of financial statements by an
evaluating controls, risk manage- outside body to express an audit
ment, and governance opinion
Internal audit unit of the de- The Auditor-General of South
Who conducts it partment, overseen by an Audit Africa (AGSA)
Committee
Section 38(1)(a) of the PFMA; Constitution s.188; Public Audit
Legal basis Treasury Regulation 27 Act 25 of 2004
Continuous throughout the year Annually, after financial year-
Frequency end
Accounting officer and Audit Parliament; public
Audience Committee
Internal audit reports and rec- Audit opinion (unqualified, qual-
Output ommendations ified, adverse, disclaimer)
Question 1 (f ) [5 marks]
Question: What is the Medium Term Expenditure Framework (MTEF) and why
is it important for public resource planning in South Africa? [5]
Answer:
[KEY CONCEPT]
The Medium Term Expenditure Framework (MTEF) is a rolling three-year gov-
ernment spending plan that sets departmental expenditure ceilings for the current year
Page 5 of 41 ⋆
, PUB1504 | Exam Revision Guide Public Resource Management I
and two outer years. It is produced annually alongside the national budget.
Importance for public resource planning:
• Predictability: Departments know their funding envelopes in advance, allowing them to
plan multi-year programmes and capital projects with confidence.
• Fiscal discipline: By setting hard ceilings, the MTEF prevents departments from over-
committing resources and links spending to the government’s macroeconomic targets.
• Alignment with priorities: The MTEF connects budget allocations directly to strate-
gic government priorities set out in the Medium Term Strategic Framework (MTSF), mak-
ing it easier to track whether money is following policy.
• Improved service delivery: Long-term spending signals allow departments to recruit
staff, procure equipment, and plan infrastructure projects that take more than one year to
complete.
Question 1 (g) [5 marks]
Question: List FIVE general principles of sound financial management that every ac-
counting officer in a national department must observe in terms of the PFMA. [5]
Answer:
Section 38 of the PFMA Act 1 of 1999 places accounting officers at the centre of financial
management. The five core principles are:
1. Legality: All spending must have legal authority – money may only be spent as autho-
rised by the Appropriation Act and relevant legislation. No spending outside appropriated
funds.
2. Economy: Resources must be procured at the lowest possible cost consistent with quality
requirements. Waste is a violation of the principle.
3. Efficiency: Outputs must be maximised from available inputs. The ratio of outputs to
inputs must be optimised – doing more with the same or less.
4. Effectiveness: Programmes must achieve their intended policy outcomes. Efficient use of
resources is only meaningful if it actually delivers the desired results for communities.
5. Transparency and accountability: Financial information must be accurate, timely,
and accessible. Accounting officers must report to Parliament and Treasury within stipu-
Page 6 of 41 ⋆
