What are the sources of government revenue in Kenya?

      

Discuss the sources of government revenue in Kenya.

  

Answers


John
1. Sales of confiscated goods or unclaimed items e.g. at the port of entry

2. Loan repayments: The government gets revenue from the interests on loan repayments from public institutions

3. Rents and rates from hire of government property such as buildings, land and residential areas

4. Direct taxes e.g. icome tax, corporate tax

5. Indirect taxes e.g customs duties and value added tax

6. Loans - both from external and internal sources

7. Grants from foreign governments or international bodies

8. Profits from parastatals and from other investments

9. Charges from provision of government services e.g. water, electricity, health

10. Fines imposed on offenders by courts of law

State and explain the various sources of government revenue

i. Taxes
ii. Fees
iii. Prices
iv. Special assessment
v. Fines
vi. State properties
vii. Privatization
viii. Borrowing
ix. Seigniorage
Taxes
It is amount of money received by the government from different sources. Taxation is a compulsory contribution imposed on individual which is incurred to meet a common purpose.
Fees
Refers to the amount of money received by the government against any direct services rendered by the government. It is paid by individuals and private firms for provision of services for example land survey, education among others. It also includes license fee; payment which is indirect exchange of services provided (Quid-pro-quo)
Prices
Amount of money that the government receives for commercial services for example train charges, postal charges among others. Price is amount given in order to access a service.
Special assessment
Are voluntary charges involving voluntary transactions. It’s the amount charged for a specific purpose for example if a community wants to put up a project, members of that community are asked to pay some money based on their capacity to pay.
Fine
It is a compulsory payment paid to the government without anything in return. Courts impose or charge individuals who commit crimes.
State properties
Include forests, mines, national parks among others that provide income to the government.
Privatization
Involves selling state-owned organizations.
Borrowing
Can be either be domestic or external. Also called public debt.
Seigniorage
Refers to the difference between what money can buy and the cost of producing it. The benefit that the government or other monetary authority derives from the ability to create money. It is a form of profit made by the government in the process of producing money.
johnmulu answered the question on January 27, 2017 at 12:55


Next: Why does the government of Kenya prepare an annual national budget?
Previous: State two aspects that may lead to emergence of divisions amongst people

View More History and Government Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions