The responsibilities of the Senate budget committee in public finance management in Kenya are to-. It includes the fees that are collected from the communication services companies or the telecom operators. The state performs the redistribution function through two basic categories of tools. • Government has to perform certain functions in a country such as to supply certain public or collective goods which individuals cannot or … It should not lead to a fall in the assets of the government. There are various types of subsidies. The main co… PUBLIC FINANCE MANAGEMENT: THE ROLE OF THE LEGISLATURE IN THE 2011 FISCAL YEAR. CFA Institute Does Not Endorse, Promote, Or Warrant The Accuracy Or Quality Of WallStreetMojo. Login details for this Free course will be emailed to you, This website or its third-party tools use cookies, which are necessary to its functioning and required to achieve the purposes illustrated in the cookie policy. All the revenue and expenditure are collected by or for the public. It is a study of income and expenditure of central, state and local government and the principles underlying them. When there is more prosperity in the economy and the people are earning more and more, the government increase the tax rate and during deflation government reduces the tax rate thereby increasing the demand. Both the aspects (income and expenditure) relate to the states financial administration and control. What is the role of public finance in economic development? Some of them are listed below: This subsidy helps to encourage the suppliers to increase the output of a particular product by helping them cut their costs. The Public Finance Management Act, 2012 20 79―Public officers to comply with laws relating to government resources. FME03 - PUBLIC FINANCE. Public finance works on cutting down these disparities by its distributing function. Management of income and expenditure by optimum utilization of the resources. 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. When the expenditure exceeds the revenue, the government will take the help of debt to fulfill the needs of the country and to run the economy. It deals with the revenue and expenditure at every level in which the public is involved, whether the state level or the central level. Here, the role of financial institutions is important, since they induce the public to save by offering attractive interest rates. PUBLIC FINANCE AND TAXATION www.someakenya.com Contact: 0707 737 890 Page 2 CONTENT 1. so as to run the economy. so as to ensure the growth of the nation at large. The main aim of the government is to maximize the social benefit and the objective of social welfare can be attained by the help of government expenditure. Due to higher taxes, the individuals and businesses are left with lesser discretionary income to spend. When the increased interest rates lead to a fall in the private investment spending in such a way that it depresses the initial increase of the total investment spending, it is known as the crowding-out effect. These types of taxes impose on goods and services and are compulsory payments. The important component of public finance is to analyze that is there will be a shortage of funds or availability of excess funds and accordingly deploy the funds. Deficit spending is when the amount spent exceeds the revenue at a particular time. Public finance largely involves public money; hence management and transparency in the records play the most important role. It is a critical prerequisite which enables an enterprise, public or private to maintain itself and effectively meet its commitment to individuals and groups who consume its output of goods and services. The government looks after maintaining the law and order, defense against foreign attacks, building infrastructure, and more. Public finance is the branch that deals with the government’s revenue and expenditure. Purchasing and supply are key mechanisms in enabling the government to implement its plans. An import subsidy is a support from the government for the products that get imported. Role of Public Finance in a Developing Economy: In a developing economy, the State must play a very active role in promoting economic development and public finance is the instrument that the State uses in this regard. Introductions to public financial management - Nature and Scope of Public Finance - General overview of public financial management as envisaged by the constitution - Responsibility of National and County Treasuries - Overview of the public financial management Act The Role of Public Finance. To cope up with incapability, public finance is one of the tools. Its purpose is to collect the excess income from the rich in the form of taxes and spread it into the hands of the poor in the form of subsidies. Lesson I: The Role and Scope of Public Finance PROF. MARY GRACE P. RONQUILLO Page 1 Faculty, Department of Financial Management San Beda College A. Definitions of Public Finance - the study of the role of the government in the economy. Of allocating natural as well as human resources Telegram Channel, we can divide the public is large terms! Its definition people ’ s economy management Act, 2012 20 79―Public officers to comply laws... 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