Methods the government could undertake to finance a budget deficit.
1. Internal borrowing through the sale of treasury bills and bonds.
2. The government could also fall back on its reserves on the assumption that the problem in short term
3. External borrowing from international institutions or other countries.
4. Seeking donation or grants from donor countries.
5. Selling government property or concession of state property
6. Reduction in government expenditure through the cost cutting/sharing
7. Printing more currency
Disadvantages of the methods the government could undertake to finance a budget deficit
1. Increase interest rates.
2. Increase foreign debts
3. Increase inflation rate in the economy
4. Politics – where one
5. Reduces the morale of workers hence low productivity i.e. retrenchment of employees
Wilfykil answered the question on February 13, 2019 at 08:20
- Identify four ways in which an individual or firm could engage in ?tax avoidance(Solved)
Identify four ways in which an individual or firm could engage in ―tax avoidance
Date posted: February 13, 2019. Answers (1)
- Argue six cases against indirect taxes imposed in your country(Solved)
Argue six cases against indirect taxes imposed in your country
Date posted: February 13, 2019. Answers (1)
- One of the facilitators in a tax seminar commented that "tax incentives tend to aid growth of capital markets.
Justify the facilitator's comment by identifying four...(Solved)
One of the facilitators in a tax seminar commented that "tax incentives tend to aid growth of capital markets.
Justify the facilitator's comment by identifying four incentives intended to aid the growth of capital markets in your country.
Date posted: February 13, 2019. Answers (1)
- Outline four sources of revenue for a county or local authority(Solved)
Outline four sources of revenue for a county or local authority
Date posted: February 13, 2019. Answers (1)
- Discuss four factors that influence tax shifting in an economy(Solved)
Discuss four factors that influence tax shifting in an economy
Date posted: February 13, 2019. Answers (1)
- One of the facilitators in an East African Community tax seminar commented that "there are diverse factors that influence taxable capacity in various countries".
Justify the...(Solved)
One of the facilitators in an East African Community tax seminar commented that "there are diverse factors that influence taxable capacity in various countries".
Justify the facilitator's comment by discussing four factors that influence taxable capacity in your country.
Date posted: February 13, 2019. Answers (1)
- Outline five causes of tax evasion in developing countries(Solved)
Outline five causes of tax evasion in developing countries
Date posted: February 13, 2019. Answers (1)
- Explain the term "set-off tax" as used in taxation(Solved)
Explain the term "set-off tax" as used in taxation
Date posted: February 13, 2019. Answers (1)
- Distinguish between a "single tax system" and a "multiple tax system".(Solved)
Distinguish between a "single tax system" and a "multiple tax system".
Date posted: February 13, 2019. Answers (1)
- Distinguish between "digressive taxes" and "regressive taxes".(Solved)
Distinguish between "digressive taxes" and "regressive taxes".
Date posted: February 13, 2019. Answers (1)
- Explain the term =taxable limit‘ as used in taxation(Solved)
Explain the term ‗taxable limit‘ as used in taxation
Date posted: February 13, 2019. Answers (1)
- Suggest four ways on how tax policy can be used to promote the growth of small and medium enterprises (SMEs) in your country(Solved)
Suggest four ways on how tax policy can be used to promote the growth of small and medium enterprises (SMEs) in your country
Date posted: February 13, 2019. Answers (1)