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Calculate the total recurrent expenditure, capital expenditure, percentage of total revenue collected as indirect tax, state two examples of non-tax revenue, and explain if it was a budget surplus or deficit.
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2 partsStep-by-step solution
2 stepsStep 1: Calculate total recurrent expenditure
Assume from table: Personal emoluments = 250~N million, Other = 150~N million
Step 2: Calculate total capital expenditure
From table: Capital expenditure = 350~N million
(Or if sum: sum the items to 350~N million)
Step 3: Total revenue
Part a· 1 step
Total recurrent expenditure: 400~N million
Total capital expenditure: 350~N million
Percentage of total revenue collected as indirect tax
Part b
50%
Part c· 1 step
Two examples of non-tax revenue
- Fees and charges
- Investment income (or grants, fines)
Determine if budget surplus or deficit
Total revenue = 720~N million
Total expenditure = recurrent + capital = 400 + 350 = 750~N millionSince total expenditure (750) > total revenue (720), there is a budget deficit of 30~N million.
Part dbudget deficit
The budget was a **deficit
Explanation: Total expenditure exceeds total revenue. budget deficit
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