Sources of revenue:
• Compulsory contribution imposed by government on the individual and institutions
• Major source of government revenue
• Direct and indirect taxes
• Government borrows from institutions within the country (internal debt) and outside the country (external debt)
c) Economic activities of government
• Sale of goods and services to general public
d) Fees and Fines
• E.g. licence fees, fine for violation of traffic rule
e) Printing Of New Notes
• Seldom used because it tends to be inflationary
2 types of government expenditure: -
a) Ordinary Expenditure
b) Development Expenditure
a) Ordinary Expenditure:
It is incurred in day-to-day routine work and is recurrent year after year.
i. Common Services: expenses incurred by the various departments and ministries.
ii. Expenditure on the public debt: servicing of internal and external debt i.e. interest payments and money repayment.
iii. Defence, police and justice: cost of maintaining police and armed forces and law courts.
iv. Social and the community services: expenditure on education, health, social welfare and public works.
v. The Economic Services: promotion of productivity and economic growth in various sectors e.g. manufacturing, transport, construction, communication and public utilities.
Expenditure incurred for purpose of economic & social development e.g. building of schools, hospitals, roads and express ways, drainage and sewerage systems, development of residential estates.
Email based economics assignment help - homework help at TutorsGlobe
Are you searching economics tutor for help with Role of Government questions? Role of Government topic is not easier to learn without external help? We at www.tutorsglobe.com offer finest service of economics homework help and economics homework help. Live tutors are available for 24x7 hours helping students in their Role of Government related problems. We provide step by step Role of Government question's answers with 100% plagiarism free content. We prepare quality content and notes for Role of Government topic under economics theory and study material. These are avail for subscribed users and they can get advantages anytime.
Why TutorsGlobe for Fiscal Policy homework help
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!