Topic 20: The Income and Expenditure of the Government

Content

A) Public Expenditure

v Public and Private Spending (meaning, aims and examples)

v Types of Public Expenditure

v Current and Capital Expenditure (Meaning and differences)

v Arguments for Public Expenditure

B) Public Revenue

v Sources of Revenue (tax, non-tax and grants)

v Taxation

o    Meaning

o    Reasons for Taxation

o    Canons of Taxation

o    Types of Taxes

Ø  Direct Taxes (Pros and Cons with examples)

Ø  Indirect Taxes (Pros and Cons with examples)

o    Kinds of Tax

o    The Fairness of a Tax

Ø  Progressive Tax

Ø  Regressive Tax

Ø  Proportional Tax

o    A Graphic Presentation of the Fairness of a Tax

C) The National Debt

v The National Debt and Public Debt

v PSBR and PSDR

v Three categories of National Debt

D) Financial Administration

v The Budget

v Uses of Budget

v Types of Budget

o    Deficit Budget

o    Surplus Budget

o    Balanced Budget