KASNEB|KNEC|KISM|ACCA|CAMPUS MAGAZINES AND JOB LINKS, PRINCIPLES OF PUBLIC FINANCE AND TAXATION, TOPIC                                                                                                          PAGE, Introductions to public financial management Legal Framework………………..5, Public budget process for public bodies …………………………………………………38, Oversight function in public finance management………………………….……….71, Introduction to taxation……………………………………………………….…………….80, Taxation of income of persons Taxable and non taxable persons……………..116, Capital deductions……………………………………………………………….…..…………196, Administration of income tax……………………………………………………………240, Administration of value added tax ………………………………………………………….258, Customs taxes and excise taxes………………………………………………………………283, INTRODUCTIONS TO PUBLIC FINANCIAL MANAGEMENT LEGAL FRAMEWORK. Can you add oneadd one Public Expenditure 3. One of the most important administrative tools, a budget serves also as a, A budget process refers to the process which governments create and approve a budget. Publication date 1922 Topics Rashtrapati Collection digitallibraryindia; JaiGyan Language English. They are, 1. It encompasses the mechanisms through which public resources are collected, allocated, spent and accounted for. The tax base was, however, limited to traders only. While being held hostage during negotiations on Vasco da Gamma’s boat, a treaty of surrender was signed with Portugal for an annual tribute of 1,500 meticals of gold. (b) Obtain audit evidence and comply with the regulatory framework during audits. The main components of public finance include activities related to collecting revenueSales RevenueSales revenue is the income received by a company from its sales of goods or the provision of services. 1. Taxation may be referred to as the revenue raising activity of the government. Public Finance “ The task of economic stabilization requires keeping the economy from straying too far above or below the path of steady high employment. Where the inputs for manufacturing were subject to sales tax, the imposition of sales tax on the finished product will result in the imposition of tax on another tax i.e. It is a study of income and expenditure of central, state and local government and the principles underlying them. 0000000856 00000 n Public finance deals with the income and expenditure pattern of the Government. To allow such deductions as may just and reasonable as representing the diminution in value of fixed assets during a particular year. Nature of Public Finance Public finance has been held as a science which deals with the income and expenditure of the government’s finance. It has been held as a study of principles underlying the spending and raising of funds by the public authorities. What is Public Finance? According to Musgrave, the scope of public finance embraces the following three functions of the government’s budgetary policy confined to the fiscal department the: A budget is an estimate of costs, revenues, and resources over a specified period, reflecting a reading of future financial conditions and goals. Principles of public finance by Hugh Dalton, 1929, G. Routledge edition, in English - 5th ed., enl., rev., and re-set. Basic Principles of Public Finance EC 62-817 D IV. Next article Atomic Physics Notes Download pdf. Custom duties were also charged on other exports like ivory, cloves and beads. The subject matter of the public finance is classified under five broad categories of which the first two are discussed. These societies were communist/socialist in the sense that property was communally owned all the members of a particular social setup. Public finance is concerned with: − Government expenditures: policy goals − Ressource mobilizations: intergenerational equity … According to Dalton “Public 0 (e) Full employment. VAT is charged on each transaction in the production and distribution chain. 0000002491 00000 n Sound, transparent and accountable public financial management is a key pillar of governance reform and of vital �mEK.Q�P"Ԁ��$}����������wwf���w�s���� �|,@j%h�KK8��ǩ�j Public finance is that branch of general economics which deals with financial activities of the state or government at national, state and local levels. However, the Portuguese were violent and thus this led to a complete failure to use equity in the creation and levy of taxes there were riots (you thought riots started the other day?) Public finance has both normative and positive elements, and moving between theory and practice requires attention to help us understand both what policies government should adopt and whether it is likely to do so. Saweel ur Raheem. The farm works deduction is deducted in the income tax computation. were punctuated with civil disobedience and widespread cases of tax evasion and avoidance. 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The word public refers to general people and the word finance means resources.So public finance means resources of the masses,how they are collected and utilized.Thus, Public Finance is the branch of economics that studies the taxing and spending activities of government.The discipline of public finance … %PDF-1.6 %���� Public Debt 4. 0000003228 00000 n trailer Public Finance is the term, which has traditionally been used or applied to the packages of those policy problems, which involve the use of tax and expenditure measures. Principles of Finance by Helmut Elsinger. Download Public Finance and Taxation PDF notes Download Click here to Purchase Public Finance and Taxation notes PAPER NO. 0000002958 00000 n 0000005973 00000 n The then Sultan Ibrahim of Malindi was held against his wishes and forced to accept defeat. However, in a country where tax evasion is widespread, a single stage tax system will result in a higher loss of revenue than would normally be the case if the system was multi stage. Budget can be divided in to two parts namely, OVERSIGHT FUNCTION IN PUBLIC FINANCE MANAGEMENT. As such, PFM processes comprise the whole budget cycle, public procurement, audit practices and revenue collection. Whereas public finance is concerned with ‘public wants’, where ‘exclusion principle’ can’t be applied in its con­sumption. %%EOF cascading effect. 0000006937 00000 n Meaning & Scope of Public Finance . On arrival cargo from an aircraft, vehicle or vessel which unloaded must be declared to customs in a prescribed form within 21 days. 0000003101 00000 n A government budget is a document presenting the government’s proposed revenues, spending and priorities for a financial year. Public Finance 1. The deduction is made against income, Farm works deduction: This is a capital deduction granted only in respect of capital expenditure on agricultural land. Lecture Notes # 1. Where goods are not removed from the customs warehouse within the notice period granted customs, they may be sold public auction to recover customs duty and warehouse rent payable on them. Macroeconomic Aspects of Public Finance. Thus the scope of public finance extends to the study of independent bodies acting under the government’s direct and indirect … revenue from the public by imposing taxes which revenue is used by the government to provide goods and services to the public or its citizens (to carry out government functions). 0000002239 00000 n 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. This “tithe” was to be used in future to assist those who didn’t have enough property to sustain them or even to assist those who were hit calamities. <]>> “Public finance is the study of principles underlying the spending and raising of funds by public authorities”. Section 16 of the income tax expressly provides that in calculating the gains or profits of a person no deductions can be made for expenditure of a capital nature. 0000003163 00000 n 1 Meaning and scope of Public Finance; Principles of maximum social advantage; Issues related to economic activities of the public sector. A state normally mobilises its revenue from natural resources under its control, collection of taxes from the public, borrowings, establishment or sale and privatisation of state owned corporations. 0000005442 00000 n 0000008075 00000 n The principles and systems of taxation that existed in most African Kingdoms during this period were therefore informal. Public Services: Cost and Financing EC 62-817C III. Topics covered are: Topic 1: Introduction to public financial management Topic 2: Public budget process for public bodies Topic 3: Oversight function in public finance management Topic 4: Introduction to taxation Topic 5: Taxation of income of persons Topic 6: Capital deductions Topic 7: Administration of income tax A personal identification number (PIN) shall be required for tax purposes for any of the following transactions: VAT is a tax on expenditure that is collected suppliers of goods and services and passed on to the government. The Portuguese arrived at the Kenyan coast and were now taking over from the Arabs. Income tax is charged under the income tax Act (Cap 470) which contains rules and regulations relating to the following: S.3 (1) of the income tax act states that: “Subject to, and in accordance with this Act, a tax to be known as income tax shall be charged for each year of income upon all the income of a person, whether resident or non-resident, which accrued in or was derived from Kenya.”. One way lies inflation, and the other lies recession. Objective of this note is to provide a basic framework of public finance at the macroeconomic level, starting from fiscal and monetary policy in a standard macroeconomics, public debt in a growing economy, cost-benefit analysis, public goods, international debt and international tax issues. ( d ) Equitable distribution of income taxable income do and how to pay it! ( d ) Equitable distribution of income and expenditure pattern of the government national. 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