Public expenditure, Managerial Economics

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.

Posted Date: 11/30/2012 4:13:47 AM | Location : United States







Related Discussions:- Public expenditure, Assignment Help, Ask Question on Public expenditure, Get Answer, Expert's Help, Public expenditure Discussions

Write discussion on Public expenditure
Your posts are moderated
Related Questions
in the context of oligopoly theory explain the channels via which either a cost reduction or a quantity increase influence a supplier''s profitability

(a) Describe how commercial banks determine their output, interest rates and profit levels assuming they act as oligopolies. (b) To what extent is the above statement a reality

State the relevant economic quantities Managerial economics helps the management in predicting numerous economic quantities like profit, cost, capital, demand, price, productio

a. Explain why the demand for a particular brand is more elastic than the demand for all cigarettes. If Lucky Strike raised its price by 1% in 1918, was the price elast

Average Revenue (AR) This is the revenue per unit of the commodity sold.  It is obtained by dividing Total Revenue by total quantity sold.  For a firm in a perfectly competiti

Monetary policies This is the direction of the economy through the variables of money supply and the price of money.  Expanding the supply of money and lowering the rate of in

distinguish between industry demand and firm demand..

Suppose that in an isoquant mapping, you should consider three isoquants with 1000, 2000 & 3000 units of output. The price of capital is Rs 2 a unit, and the price of labor is Rs 1


THE GOVERNED ECONOMY The governed economy contains central authorities often simply called "the government" - who levy taxes on firms and households and which engages in numer