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PUBLIC FINANCE - Coggle Diagram

- - - - Tax are compulsory contributions from individuals,businesses and organisations.
      - 1.a. Direct Tax
        
        Tax directly paid by individuals/businesses from income they earn.
        
        Corporate Income Tax
        
        Business Income tax
        
        Personal Income Tax
      - 1.b. Indirect Tax
        
        Collected on goods/services.
        The tax burden can be transferred to consumers.
        
        Custom Duty
        
        Tax levied on goods imported into or exported out a country.
        
        To protect & promote domestic industries
        
        Sales tax
        
        Tax levied on goods and services consumers avail.
        Eg: Electronics, groceries,hotels
        
        To Regulate Consumption
        Sales tax can discourage overconsumption of certain goods, especially luxury or non-essential items.
        
        Excise Duty
        
        A tax levied on production or sale of specific goods, usually within the country.Eg: Alcohol, TObacco
        
        To regulate harmful products
        
        Green Tax
        
        Tax levied on production of goods and services that might have environmental impacts
        
        Encourage eco-friendly practices.
      - Taxation system
        
        Proportional Taxation
        
        Progressive Taxation system
        
        Regressive Taxation System
        
        Degressive Taxation
    - - Administrative Fees/Charges: Birth registration, land/vehicle registration, court fees
      - Revenue from Government Departments: Income from public transport, electricity, water
      - Grants Voluntary Contributions from individuals and foreign entities
      - Borrowing:Loans to bridge gap between income and expenditure (internal & external)
- - - - refers to the government spending on building long-term assets and infrastructure that contribute to economic development.
        
        Example
        
        Construction of bridges, roads, and schools
        
        Purchase of machinery and equipment
        
        Investment in hydropower projects
        
        Development of new industries or plants l
    - - Current expenditure refers to the day-to-day spending by the government on the regular functioning of public services and administration.
        
        Example
        
        Salaries of civil servants -
        
        Medicine supply
        
        Interest payments on loans
        
        Grants and subsidies
        
        Maintenance of roads, schools, and hospitals
- - - - Mobilizes resources based on priorities
      - Guides implementation and monitoring of programs
      - Provides financial transparency and accountability
    - - Annual Budget: Regular financial plan for yearly planned activities
      - Supplementary Budget: For unforeseen needs like disasters , inflation, unplanned activities in a year
        
        New Budget
        
        Additional Budget
        
        Complimentary Budget
      - Rolling Budget