Public expenditure, Managerial Economics

Assignment Help:

PUBLIC EXPENDITURE

The accounts of the central government are centered on two funds, the Consolidated Fund, which handles the revenues form taxation and other miscellaneous receipts such as broadcasting license fees, interest and dividends, and the National Loans Fund which conducts the bulk of the governments domestic borrowing and lending.

Each government ministry works out how much money it wants to spend in the coming Financial Year which, in Kenya starts on 1st July in each year and ends on 30th June on the following year.  This is known as preparing estimates.  There are two types of estimates, -estimates of Capital Expenditure and estimates of Recurrent Expenditure.

Capital Expenditure refers to the money spent on government projects such as the construction of roads, bridges, health facilities, educational institutions and other infrastructure facilities.  Recurrent expenditure refers to money spent by the government on a regular basis throughout the Financial Year e.g. the salaries of all civil servants, or the cost of lighting a government building.

Government departments also have to prepare estimates for the next financial year for presentation to parliament.  Any department which earns revenue for sales of goods or services to the public shows this as an appropriations-in aid, which is deducted from its estimated gross expenditure to show net expenditure, that is, the actual amount required of the Exchequer.

The estimates also include Grants-in aid i.e. grants made by the central government to local authorities to supplement their revenue from their levying of rates.


Related Discussions:- Public expenditure

What is the advantage of mixed economy system, Benefits are: 1) People...

Benefits are: 1) People can create their own decisions 2) The government has limited control, which is good for arrangement 3) Gives freedoms like Enterprise, ownership,

Price elasticity of two parallel demand curves, It can be geometrically pro...

It can be geometrically proved that two elasticity are equal, which is., QB=RD Let's first consider ΔAOB. If we draw a horizontal line from point Q to intersect the vertical axis a

Economic effects of taxation, ECONOMIC EFFECTS OF TAXATION a.  A det...

ECONOMIC EFFECTS OF TAXATION a.  A deterrent to work Heavy direct taxation, especially when closely linked to current earnings, can act as a serious check to production

Enumerate the scope of managerial economics, Enumerate the Scope of manager...

Enumerate the Scope of managerial economics The scope of managerial economics contains following subjects:  1. The Theory of demand 2. The Theory of production 3. The

Fezzes is perfectly competitive, The  fez is the typical Arabic hat in the ...

The  fez is the typical Arabic hat in the shape of a short red cylinder. Historians believe it was manufactured in the city of Fes, in Morocco, during the 17 th century. It has be

Help, BU 5210 Final ...

BU 5210 Final Summer 2013 Economic Analysis

Elasticity of demand, A baseball team is trying to predict ticket sales for...

A baseball team is trying to predict ticket sales for the upcoming season. They are also considering increasing prices. The market has a population of 2 million persons. The team s

Variable costs (vc), Variable Costs (VC) These are costs, which vary w...

Variable Costs (VC) These are costs, which vary with the level of production.  The higher the level of production, the higher will be the variable costs.  They are associated

Recession, Causes of the Nigeria recession

Causes of the Nigeria recession

Inelastic supply, Inelastic Supply Supply is said to be price inelasti...

Inelastic Supply Supply is said to be price inelastic if changes in price bring about changes in quantity supplied in less proportion.  Thus, when price increases quantity sup

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd