Contents


Module 6 – Characteristics and Functions of the Government Budget Characteristics of a budget ......................................................................................................................................................................94 Tensions ..................................................................................................................................................................................................................95 Protection of citizens .....................................................................................................................................................................................95 Policy direction ................................................................................................................................................................................................96 Reflect policy .......................................................................................................................................................................................................96 Be a source of information........................................................................................................................................................................96 Promote redistribution of wealth .......................................................................................................................................................97 Detail an operating programme ..........................................................................................................................................................98 The four components of an operating programme ..............................................................................................................98 Co-ordinate and integrate activities .................................................................................................................................................99 Control expenditure .....................................................................................................................................................................................99 Promote accountability ...........................................................................................................................................................................100 Activities ..............................................................................................................................................................................................................100


Module 7– Compilation of a Government Budget Compilation of a government budget ...........................................................................................................................................104 Budget concepts ............................................................................................................................................................................................104 Budget for the central government – The Annual Budget ...........................................................................................104 Types of budgets ...........................................................................................................................................................................................107 The revenue budget ...................................................................................................................................................................................107 The expenditure budget ...........................................................................................................................................................................108 Provincial government finance .........................................................................................................................................................111 Provincial revenue ......................................................................................................................................................................................111 Local government finance ....................................................................................................................................................................112 Activities ..............................................................................................................................................................................................................113


Module 8 – Capital Budgeting Separate capital budgets .........................................................................................................................................................................116 Equitable financing ....................................................................................................................................................................................116 Stabilising effect ............................................................................................................................................................................................117 Greater control ..............................................................................................................................................................................................117 The process of capital budgeting .....................................................................................................................................................117 Capital development programme ....................................................................................................................................................117 The financial analysis ...............................................................................................................................................................................117 Operating budget .........................................................................................................................................................................................118 Impact on tax and user charges ........................................................................................................................................................118 Budget issues and problems .................................................................................................................................................................119 Sources of capital finance ......................................................................................................................................................................119 Central government ...................................................................................................................................................................................119 Local government .........................................................................................................................................................................................119 External Capital Sources .........................................................................................................................................................................120 Format for capital budgets .....................................................................................................................................................................121


Bibliography ......................................................................................................................................................................................................122


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