Public Finance Flashcards
1
Q
What is Public Finance?
A
Public Finance is how the government generates income and how they are spent
2
Q
List 5 reasons for public finance
A
- Subsidize cost of production.
- Off-set debts.
- To build more industries for job opportunities.
- To provide more public and merit goods.
- To provide infrastructure for development.
3
Q
Components of Public Finance
A
- Government Revenue.
- Government Expenditure.
4
Q
Examples of Government Revenue
A
- Taxes
- Grants
- Toll gate tickets
- Royalties
- Rates
5
Q
Examples of Government Expenditure
A
- Payment of wages and salaries of workers
- Building of Infrastructure.
- Subsidies on some selected items.
6
Q
Types of Government Expenditure
A
- Recurrent Expenditure.
- Capital Expenditure.
7
Q
Recurrent Expenditure
A
Expenditure on payments of workers wages and salaries
8
Q
Capital Expenditure
A
Construction of roads, bridges, power supply, health care, schools e.t.c
