Public Finance
CHAPTER 1: MEANING, NATURE AND SCOPE OF PUBLIC FINANCE
Def: Public Finance is the field of economics that studies government activities and the alternative means of financing government expenditures.
Our focus in this course is on the microeconomic functions of government, the way government affects the allocation of resources and the distribution of income.
THE LEGAL FRAMEWORK
The Appropriation Act gives the Government of Belize the authority to collect revenue and incur expenditure within the framework of the approved budget.
GOVERNMENT 'S BUDGET AND THE
ECONOMY
The Government 's budget is its statement of expected revenue and expenditure for the fiscal year, which begins
April 1 of one year and ends on March 31 of the following year. It is the Government 's primary instrument of fiscal policy, that is, it is the main tool for effecting changes in the pattern of expenditure and investment throughout the economy. The government’s budget, therefore, should be prepared within the context of its objectives for growth and development. ♦ Recurrent and Capital Budget
There are two major components of the budget: the
Recurrent Budget and the Capital Budget. The Capital
Expenditure Budget is further divided into Capital II
(locally funded) Expenditure and Capital III (externally funded) Expenditure.
The Recurrent Budget
The Recurrent Budget is composed of revenue and expenditure that occur annually and are fundamental in the daily operation of the Government. Recurrent revenues are of two types, Tax and Non-Tax.
√ Tax Revenues: The major categories of tax revenue are income taxes including company taxes; taxes on goods and services including sales tax; excise duties; and taxes on international trade and transactions known as customs duties. √ Non-Tax Revenues: These revenues make up a smaller proportion (about 11%) of recurrent revenue. They are drawn from a few sources such as licenses; rents and royalties; contribution to
Def: Public Finance is the field of economics that studies government activities and the alternative means of financing government expenditures.
Our focus in this course is on the microeconomic functions of government, the way government affects the allocation of resources and the distribution of income.
THE LEGAL FRAMEWORK
The Appropriation Act gives the Government of Belize the authority to collect revenue and incur expenditure within the framework of the approved budget.
GOVERNMENT 'S BUDGET AND THE
ECONOMY
The Government 's budget is its statement of expected revenue and expenditure for the fiscal year, which begins
April 1 of one year and ends on March 31 of the following year. It is the Government 's primary instrument of fiscal policy, that is, it is the main tool for effecting changes in the pattern of expenditure and investment throughout the economy. The government’s budget, therefore, should be prepared within the context of its objectives for growth and development. ♦ Recurrent and Capital Budget
There are two major components of the budget: the
Recurrent Budget and the Capital Budget. The Capital
Expenditure Budget is further divided into Capital II
(locally funded) Expenditure and Capital III (externally funded) Expenditure.
The Recurrent Budget
The Recurrent Budget is composed of revenue and expenditure that occur annually and are fundamental in the daily operation of the Government. Recurrent revenues are of two types, Tax and Non-Tax.
√ Tax Revenues: The major categories of tax revenue are income taxes including company taxes; taxes on goods and services including sales tax; excise duties; and taxes on international trade and transactions known as customs duties. √ Non-Tax Revenues: These revenues make up a smaller proportion (about 11%) of recurrent revenue. They are drawn from a few sources such as licenses; rents and royalties; contribution to