Public revenue and expenditure. Public Revenue 2022-10-12
Public revenue and expenditure Rating:
Public revenue refers to the money that governments collect from various sources, such as taxes, fees, and other charges. This money is used to fund the various functions of government, including providing essential services to the public, such as education, healthcare, and infrastructure.
On the other hand, public expenditure refers to the money that governments spend on these various functions. This includes things like salaries for government employees, benefits for citizens, and the cost of providing public services.
There are various sources of public revenue, including taxes, fees, and other charges. Taxes are the most common source of public revenue, and they come in many different forms, including income tax, sales tax, and property tax. Fees and other charges refer to the money that governments collect for specific services, such as the fees charged for licenses or permits.
One of the key challenges of public finance is finding the right balance between revenue and expenditure. If a government collects too much revenue, it can stifle economic growth and discourage people from working and investing. On the other hand, if a government spends too much money, it can lead to deficits and debt, which can have long-term negative consequences for the economy.
Therefore, it is important for governments to carefully manage their revenue and expenditure in order to ensure that they are able to provide essential services to the public without unduly burdening the economy. This often involves finding the right balance between taxation and spending, as well as finding ways to increase revenue and reduce expenditure.
In conclusion, public revenue and expenditure are two critical aspects of public finance that are essential for the proper functioning of governments. By carefully managing these two elements, governments can ensure that they are able to provide essential services to the public while also supporting economic growth and stability.
Openness, accountability and public participation in financial matters. Of the two main branches of public finance, i. Promotion of equitable development of the country through public expenditure. You will upload a Word document and an Excel document titled your last name onto Blackboard. Total government revenue or tax collection is represented by the blue bar. In other words, the taxpayer cannot claim reciprocal benefits against the taxes paid. Specific instructions for the assignments, exams, group presentation, and daycare center budget project will be passed out when assigned.
Most of these are voluntary and based upon the direct benefits accruing to the payer. Borrowing from banks, insurance companies, and other governments and earning dividends from their companies helps fund federal government, state and local governments also receive grants and assistance from the federal government, in addition to ports, airport services And user fees with other features; Penalty derived from breaking the law; Revenue from licenses and fees, such as for driving; And the sale of government securities and bond issues is also the source of public finance. The former group includes expenditure on navy-army, Civil service, educational service, judiciary etc. It is a Do it Yourself Project. Proposals affecting borrowing and other forms of public liability that will increase public debt during the following year.
Special provision to cater for marginalized groups and areas. Dalton talks about government expenditure on armaments and armed forces. By ensuring peace and tranquility defence ensures the smooth growth of productive activity and national income. It is mandatory on the part of the government to incur obligatory expenditure. The facilities necessary to support such a collection, staff, and schedule. Now, explain; Grants and gifts: Grants-in-aid are how one government provides financial assistance to another to enable it to perform certain specified functions, for example, education and health grants made to the states by the central government. Whereas public expenditure is unproductive if it does not add to enhancing the productive capacity of the nation.
Public Library Revenue, Expenditures, and Funding Sources
First Chairperson of the Commission on Revenue Allocation. Functional classification is based on a classification of the various functions actually performed by public authorities. Purchase of drugs 3. Over 14 weeks, students will spend about 2 hours per week in class. This classification provides a more detailed breakdown of revenue and capital expenditures of the government.
Donations from business partners Objectives By the end of this lesson you should be able to: 1. How the national government spends its money under recurrent expenditure. Adams states that with the progress of society, the protective expenditure trend to decline. Sound educational practice requires flexibility and the instructor may, with appropriate notice, change the content and requirements during the course. Part of the subsidy may be passed on to the purchaser of the commodity in the form of lower prices. Promotion of equity by sharing in a fair manner: a.
Public Expenditure: Meaning, Classification and Effects
There is no clear cut dividing line between institutions maintaining law and order and those that promote progress. County governments prepare and adopt their own respective annual budgets and appropriation bills, but must conform to procedure prescribed in the acts of parliament Accounts all government levels and other state organizations shall be audited by the auditor general. Plan and Non-Plan Expenditure : Plan expenditure means the current development outlays as well as investment outlays. At that time, the student and instructor will both sign the CCAS contract for incompletes and submit a copy to the School Director. To maximize the social and economic welfare of the governments, there is a need to do various tasks in the field of political, social, and economic activities. In the first place, there are such diversions of resources from private to public use, about which there is some doubt.
Public Revenue: Introduction, Meaning, Definition, Sources, and Classification
Progressive expenditure can assume different forms. Necessary expenditure is that which the state has to incur and which cannot be postponed to a future date. But up to a certain point, this is not the case. This classification is also known as functional classification. Shirras, the test of public expenditure is not the aggregate expenditure but it is the relative amounts which are assigned to different heads from time to time. Thus, prices are contractual payments. However, the bulk of state revenue comes from internal sources.
Expenditure on education, health, social insurance, etc. Primary expenditure includes all those expenditures which governments are obliged to undertake, it is mandatory on the part of the government to incur these expenditure. Regressive, Proportional and Progressive Public Expenditure: Regarding the distributive impact of public expenditure much depends on the nature of public expenditure and the policy underlying it. Discuss the functions of the Commission on Revenue allocation The Commission on Revenue Allocation In this lesson, we shall discuss the functions of the commission charged with the responsibility of managing the revenue allocation. Due 8 PM, Friday, October 23.
Explain with examples Public revenue and Public expenditure.
For example, if all categories of employees were given a house allowance at the same rate, say 10% of their salaries, it would be a case of proportional expenditure. This is the fund into which all the money raised or received bythe national government is paid. The public expenditure or grant will be proportional, when the proportion of additional benefit provided by the grant or public expenditure is the same, whatever the size of the recipient income. It includes both development and non-development expenditure. This unit deals with the sources of revenue for both national and county governments. What is Public Expenditure? Classification of public expenditure refers to the systematic arrangement of different items of state expenditure, on some specified economic basis. This is done through central government grants to state governments to provide certain services more efficiently.