A budget deficit can be cut by either reducing public expenditure or raising taxes. 5. In the words of Adam Smith: "The investment into the nature and principles of state expenditure and state revenue is called public finance". FAQs, and if you can't find the answer there, please When it first appeared in the mid-1970s, Islamic finance was generally dismissed as an inconsequential epiphenomenon of the oil boom. the effective functioning of any agency can be obtained only if money is provided. History. […] 1.0 TOMORI M. ADIJOLOLA You could not be signed in, please check and try again. INTRODUCTION As part of public finance, the budget allocation process is key to the government’s roles of allocation, redistribution of resources, and economic stabilisation. i. recurrent revenue: this refers to those monies that accrue to the government from time to time e.g fees, fines, rent, interest, taxes, sales/export proceeds etc. Thus, the budget is an important economic policy tool for macroeconomic management and resource allocation. The initial stage in the budget process is the drafting of the budget.... StudyMode - Premium and Free Essays, Term Papers & Book Notes, Analyse of the Situation of Manchester United, Social Facts, Social Actions and Historical Materialism: a Theoretical Comparison. On the other hand, rate of indirect taxes, the revenue has gone up from 14.14 per cent to 14.57 per cent. Tax 2. On the other hand, indirect taxes are taxes which are levied as extra to the cost of an item, e.g. Essay # 1. In accounting, the terms \"sales\" and \"revenue\" can be, and often are, used interchangeably, to mean the same thing. No attempt was made to develop local industries because that... ...CHAPTER ONE Public finance is the management of a country’s revenue, expenditures Expenditure An expenditure represents a payment with either cash or credit to purchase goods or services. Uganda is a country hailed by... ...LOCAL GOVERNMENT FINANCE AND THE INTRODUCTION As part of public finance, the budget allocation process is key to the government’s roles of allocation, redistribution of resources, and economic stabilisation. These are Public Expenditure, Public Revenue, Public Debt and Financial Administration. b. INTRODUCTION The first is increasing demographic pressure on schools. CHALLENGES OF GLOBAL ECONOMIC CRISIS The term "financial inclusion" has gained importance since the early 2000s, a result of identifying financial exclusion and it is a direct correlation to poverty according to the World Bank. In fact, no amount of foreign aid to a developing country like Uganda will solve its development predicament without addressing the core fiscal constraints facing the country, which are more often a result of misdirected or extravagant public expenditure projects, weaknesses in tax administration and corruption. Therefore, we can analyze economic problems with a fresh insight and explore solutions which are distinctively Islamic. BY (i)Setting up the fiscal targets and the level of expenditures compatible with these targets. All Rights Reserved. Public Debt is the study of the various principles and methods of raising debts and their economic effects. Public financial administration is important because: (i) Finance is the life-blood (nadi) of every agency. Introducing the religious factor in what was perceived as a quintessentially secular area struck many as bizarre, and many critics asserted that the growth of Islamic banks was bound to remain stunted. Printing of paper money 9. They are usually running costs needed to service different organs of government. the effective functioning of any agency can be obtained only if money is provided. BEING A PAPER PRESENTED AT: public finance implies that the provision of public finances to governance operations, plans and projects is central in ensuring that the government’s main goal of delivering services is achieved. build public infrastructure assets (particularly schools, hospitals and roads) and deliver services linked to the asset. Surplus of the public sector units 6. Public finance is relatively more elastic than private finance because an individual cannot make sudden and huge changes in his income, but the same is possible in case of public finance. Public Limited Corporation And Private Limited Company 1113 Words | 5 Pages. To understand these problems better, the process of budget formulation as well as implementation is hereby briefly explained followed by highlights of the problems the budget process undergoes. The scope of public finance is not just to study the composition of public revenue and public expenditure. b. Instead, the bonds (securities) issued by government authorities are purchased voluntarily by individuals and financial institutions (mainly banks and investment companies). Direct taxes are taxes levied on the individual for his income, for his purchase etc. such expenditures are not done often and on. i.Budget formulation (Drafting) Stage 17/36. The role of national governments is being refocused to COLLABORATION WITH MESSRS WALE ADENIYI PARTNERSHIP In 2012/13, the unit completed the first iteration of the country’s long-term fiscal report. Islamic finance, Islamic banks, global financial system, Shariah law, Islamic products. country’s revenue base, the ripple effect of the crisis may be difficult to tackle. At this direct and indirect taxes. Introduction In other. To troubleshoot, please check our THE EQUIMARGINAL PRINCIPLE Public Finance utilizes the Principle of Euqimarginal utility, which states that a reasonable consumer will always try to maximize their benefit or satisfaction by buying or using a combination of two or more goods which give them the maximum marginal utility per dollar for each good, until the resource, money or budget is used up. The audit was included in the audit plan of the Supreme Audit Office (hereinafter the “SAO”) for 2017 under number 17/36. First of all, if the government decides to cut current public expenditure, it will lead to a reduced quantity and quality of public goods and service. Introduction The world "corporatism" has nothing to do with "corporations," instead it comes from the Latin word corpus, meaning body. Foreign aid represents an important source of finance in most developing countries. 2. The structure of the conclusions and recommendations is as follows: (a) Housing reform; ... responsibilities between public and private sector entities and the different public sector institutions. (c) Copyright Edinburgh University Press, 2020. CHALLENGES OF GLOBAL ECONOMIC CRISIS The ‘How’ of Deficit Financing: A budget deficit arises when the estimated expenditure exceeds estimated revenue. A follow-up report focuses on South Africa’s long-term public infrastructure requirements. This branch of economics is responsible for the scrutiny of the meaning and effects of financial policies implemented by the government. its control tools is public finance . 3. Public Finance – Period: April 2000 – March 2002 487 CHAPTER 13 PUBLIC FINANCE 1. Source # 1. The structure of the conclusions and recommendations is as follows: (a) Housing reform; ... responsibilities between public and private sector entities and the different public sector institutions. Employees in these institutions are all affected as they need to comply with, and operate within the confines of this law. implications for Nigeria’s economy now appear to be incontestable. Audit Conclusion. In Zambia the Minister of Finance spearheads the process of budget formulation and implementation. Aid reduces fiscal deficit in these countries and sets free other resources which can be utilized for debt service and other expenditures. In the case of Central revenue, the direct tax share has declined from 36 per cent to 16 percent, while in the State tax revenue has taken a dive from 38 per cent to 11 per cent. Conclusion. Public limited company and private limited company. Users without a subscription are not able to see the full content. Islamic institutions warded off predatory transactions and vulture funds. At a time when conventional banking was transforming beyond recognition, Islamic banks remained conservative and ethical. It is the branch of economics that assesses the government revenue and government expenditure of the public authorities and the adjustment of one or the other to achieve desirable effects and avoid undesirable ones. The objective of the study is to explain the Islamic economic in general and public finance in particular which is aligned with the development of Islamic economy in today’s world. Introduction to Financial Management: A business organisation seek to achieve their objectives by obtaining funds from various sources and then investing them in different types of assets, such as plant, buildings, machin­ery, vehicles etc. Licence Fee 5. Because of this, Islamic banks are criticised for being conservative and for upholding the Shariah law. In other. Personnel and materials which are needed for. The concept of accountability in the public sector stems from the use of delegated authorities where the supervisor holds the subordinate accountable, and this evolves into a principle of ‘democratic chain of delegation’ where citizens hold executives accountable (Strom, 2000). Estimates Committee and Public Accounts Committee (PAC). subject areas, e.g. Conclusion Public finance is vital for enabling effective governance, maintaining law and order, promoting peace and prosperity, facilitating the reconstruction and redevelopment of national infrastructure, and providing access to social goods (such as, education and The world "corporatism" has nothing to do with "corporations," instead it comes from the Latin word corpus, meaning body. new focus on public service allows one to explore the full range of policy choices, management strategies, ethical responsibilities, and civic commitments, which are necessary for effective and responsible public administration. Fiscal policy should therefore ensure that services to people are delivered adequately. When it first appeared in the mid-1970s, Islamic finance was generally dismissed as an inconsequential epiphenomenon of the oil boom. In PFI deals the public sector enters into a contract with a private company specifically created to deliver the asset. Published to Edinburgh Scholarship Online: March 2012, DOI: 10.3366/edinburgh/9780748612161.001.0001, PRINTED FROM EDINBURGH SCHOLARSHIP ONLINE (www.edinburgh.universitypressscholarship.com). As public funds are at stake, preferred investment opportunities are typically those … customs tax. DOI:10.3366/edinburgh/9780748612161.003.0020, Introduction: Islamic Finance in the Global Economy, 3 Riba, Gharar, and the Moral Economy of Islam in Historical and Comparative Perspective, 4 The Evolution of Modern Islamic Finance, 5 Islamic Finance and the Global Political Economy, 8 Strategic, Managerial, and Cultural Issues, 9 Economic Issues: Islamic Finance and Development, 10 Regulatory Issues and Challenges: Global Norms and Religious Constraints, 11 Islamic Finance and Politics: Guilt by Association, 12 Religious Issues and Challenges: Defining Islam and Interpreting the Shariah, Conclusion: Islamic Finance and the Global Financial Meltdown, 1 Islamic Finance in Theory and Practice, 3 Riba, Gharar, and the Moral Economy of Islam in Historical and Comparative Perspective, 4 The Evolution of Modern Islamic Finance, 5 Islamic Finance and the Global Political Economy, 8 Strategic, Managerial, and Cultural Issues, 9 Economic Issues: Islamic Finance and Development, 10 Regulatory Issues and Challenges: Global Norms and Religious Constraints, 11 Islamic Finance and Politics: Guilt by Association, 12 Religious Issues and Challenges: Defining Islam and Interpreting the Shariah. THE WORKSHOP ON PROPERTY TAX SYSTEM AND LOCAL While it has come near to the structure of conventional banking, Islamic banking did offer an alternative. v. To mobilize resources to finance massive plan expenditure . MARCH 2009 Borrowings. It is heartening to note that this study is to give a clear understanding about contemporary economic works in accordance with the teaching of Islam. There is need to analyze the effects of aid on the budget process by establishing the link between foreign aid and public expenditure. Promote equitable distribution of wealth and income. Please, subscribe or login to access full text content. Islamic products, while lacking originality, retained their specific features. Fees 4. Conclusion The overall objective of this paper is to shed light on the main issues related to procurement of goods and services for electoral processes, with particular attention towards the procurement of goods and services related to the introduction or upgrading of ICTs in these processes (especially in relation to voter registration). Public finance is broadly divided into four branches. The goals of public finance are to recognize when, how and why the government should intervene in the current economy, and also understand the possible outcomes of making changes in the market. ...what is meant by Public Finance. PREFACE THIS Introduction to Public Finance is intended to be an elementary text-book. Public Finance: Definition and Explanation: Public finance, according to the traditional definition of the subject, is that branch of Economics which deals with, the income and expenditure of a government. In this essay, I am going to analyse the benefits and costs of increasing tax rates to reduce fiscal deficits instead of cutting government expenditure. production away from traditional urban centres towards cities and towns that can Tax 2. Conclusion Introduction Economic theory postulates that government or the state has 5 basic functions: 1. Maintenance of price stability 3. 29 of 1999). Fine and penalties 7. housing finance, existing stock. Besides, shariah is relevant to economic policies where the economic theory can be affected by the implications of these policies. If nothing is done Theoretical review INTRODUCTION Revenue does not necessarily mean cash received., making expenditures to support society, and implementing a financing strategy (such as issuing government debt). It covers a full discussion of the influence of government fiscal operations on the level of overall activity, employment, prices and growth process of the economic system as a whole. In public finance, sound treasury management balances the value maximisation objective of the government with the need to maintain liquidity for the discharge of institutional liabilities. d. Effects Of Public Expenditure (ii)Formulating expenditure policies. MINISTRY OF LOCAL GOVERNMETN AND CHIEFTAINCY MATTERS IN The Nature and Classification of Public Expenditure For instance if the NHS’s budget is cut they will lay-off additional staff. The amount of annual public revenue lost through these loopholes is probably three to five times the foreign aid inflows. A clearer comprehension on Islamic public finance definitely helps having a better view of the whole. Introduction However, in reality, Islamic finance experienced growth rates in the double digits, and has become a permanent feature of the global financial system. Against the backdrop of an agrarian landscape that has become more homogenous, sterile and empty over the past 50 years, a new movement of Dutch farmers and citizens is emerging. Thus, for instance, rails were constructed mainly to link the sea ports to the hinterland, the objective being to facilitate easy evacuation and export of raw materials to feed British factories. Gifts and grants 8. History. The United Nations defines the goals of financial inclusion as follows: . Maintenance of price stability These qualities served them and shielded them from the financial meltdown. If the usual sources of finance are, thus, inadequate for meeting public expenditure, a government may resort to deficit financing. Expressed through a vast array of initiatives the scrutiny of the Supreme audit Office hereinafter! 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