Public Finance


The role of the executive authority ....................................................................................................................................................45 At provincial level ..........................................................................................................................................................................................47 At local government level .........................................................................................................................................................................48 Chairman of the finance committee ................................................................................................................................................50 The role/function of the administrative authority ................................................................................................................55 At central government level ....................................................................................................................................................................55 Financial control within the administrative authority .......................................................................................................55 General financial matters .........................................................................................................................................................................59 Activities............ ................................................................................................................................................................................................64


Module 4 – The Generation of Income and the Expenditure within a State Allocation and expenditure of income – income of central government ............................................................66 Accountability ...................................................................................................................................................................................................67 Sufficient revenue ...........................................................................................................................................................................................67 Equal distribution ..........................................................................................................................................................................................67 Acquisition of income .................................................................................................................................................................................68 Tax.......................... ...........................................................................................................................................................................................68 Determination of financial needs: .....................................................................................................................................................69 Determination of financial capacity .................................................................................................................................................73 Division of sources of income ...............................................................................................................................................................73 Revenue sharing ..............................................................................................................................................................................................75 Activities .................................................................................................................................................................................................................79


Module 5 – Government Income General aims of taxation ...........................................................................................................................................................................83 Source of income ............................................................................................................................................................................................83 Economic regulatory function ...............................................................................................................................................................83 Redistribution of wealth .............................................................................................................................................................................83 General characteristics of tax ................................................................................................................................................................83 Taxation is compulsory ..............................................................................................................................................................................83 Absence of quid pro quo (Latin: something for something) ...........................................................................................84 Types of taxation .............................................................................................................................................................................................84 Income tax.............................................................................................................................................................................................................85 Personal income tax .......................................................................................................................................................................................85 Bracket creeping or fiscal drag .............................................................................................................................................................86 Corporate income tax .................................................................................................................................................................................86 Wealth tax ............................................................................................................................................................................................................87 Property tax ........................................................................................................................................................................................................87 Estate duty .............................................................................................................................................................................................................87 Transfer duty .......................................................................................................................................................................................................87 Stamp duty..... ......................................................................................................................................................................................................87 Consumption tax .............................................................................................................................................................................................88 Value-added tax ...............................................................................................................................................................................................88 Import duty ..........................................................................................................................................................................................................88 Excise duty ............................................................................................................................................................................................................89 User charges ........................................................................................................................................................................................................89 Consumer tariffs .............................................................................................................................................................................................89 Nominal levies ..................................................................................................................................................................................................89 Activities.................... .....................................................................................................................................................................................90


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