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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.

Economics

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Answers

2 parts
a

350 N million350~\text{N million}

d

budget deficit

Step-by-step solution

2 steps

Step 1: Calculate total recurrent expenditure

Total recurrent expenditure=Personal emoluments+Other recurrent expenditure\text{Total recurrent expenditure} = \text{Personal emoluments} + \text{Other recurrent expenditure}

Assume from table: Personal emoluments = 250~N million, Other = 150~N million

Total recurrent expenditure=250+150=400 N million\text{Total recurrent expenditure} = 250 + 150 = 400~\text{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

Total revenue=Direct tax+Indirect tax+Non-tax revenue=240+360+120=720 N million\text{Total revenue} = \text{Direct tax} + \text{Indirect tax} + \text{Non-tax revenue} = 240 + 360 + 120 = 720~\text{N million}

Part a· 1 step

Total recurrent expenditure: 400~N million

Total capital expenditure: 350~N million

  1. Percentage of total revenue collected as indirect tax

    Percentage=(Indirect taxTotal revenue)×100%=(360720)×100%=50%\text{Percentage} = \left( \frac{\text{Indirect tax}}{\text{Total revenue}} \right) \times 100\% = \left( \frac{360}{720} \right) \times 100\% = 50\%

Part b

50%

Part c· 1 step

Two examples of non-tax revenue

  1. Fees and charges
  2. Investment income (or grants, fines)
  1. Determine if budget surplus or deficit

    Total revenue = 720~N million
    Total expenditure = recurrent + capital = 400 + 350 = 750~N million

    Since 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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