PUBLIC FINANCE Flashcards
(8 cards)
What is public finance?
Public finance refers to how a government collects and spends money to provide services and promote development in the country.
What are the two (2) types of taxation and give two examples of each?
*Direct Taxation: Applied to income and wealth.
Examples: Income Tax, Property Tax
*Indirect Taxation: Applied to goods and services.
Examples: General Consumption Tax (GCT), Customs Duties
List five (5) sources of government funding.
*Taxes
*Rates (payments for public services like water and electricity)
*Loans
*Grants or donations from other countries
*Profits from government-owned businesses
What is a budget?
A budget is the government’s yearly plan showing how much money it will spend (expenditure) and how it plans to get that money (revenue).
- When is the government’s budget prepared and presented?
The budget is prepared at the end of March and presented in Parliament in April.
Name and explain the two (2) types of government expenditure.
*Capital Expenditure: Money spent on long-term investments like building roads and houses or boosting production.
*Recurrent Expenditure: Money spent on daily government operations like salaries, repairs, and office supplies.
How does the Government of Jamaica use tax dollars?
Tax dollars are used to provide public services like healthcare, education, infrastructure (roads, water, electricity), and paying government workers.
