...Public finance is sometimes synonymous with government finance. It deals with budgeting the revenues and expenditures of a public sector entity, usually government. Public finance also can be defined as the raising of money by governments through taxes or borrowing and the spending of it. In Japan, the national budget and other basic matters on public finance are governed by the Public Finance Law, 1947 (Law No. 34, Apr. 31, 1947), which has been amended time to time. This report gives an insights of the Japan’s public finance in general begins with a historic overview. A special emphasis is given to the tax system in Japan for financing the public expenditures. Finally, this report makes a comparative analysis of Japan’s public finance with that of Bangladesh. A. Historical Overview of Japan’s Public Finance Until the mid of 1960s, Japanese Government followed a balanced budget policy. Because of revenue shortfall, in 1965 the government started to issue bonds (mainly construction bonds) to finance the gap. The oil crisis in 1973 stagnated the tax revenue and pushed the government to amend the Public Finance Law to permit the issuance of special deficit-financing bonds in FY 1975. The government had to pass this special law for each year for deficit financing until FY 1989. During the 1970s, almost one-third of total expenditure was financed by issuing of public bonds. However, this ratio has been declined to 9.5% due fiscal consolidation and economic bubble in 1980s...
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...directly linked to an identifiable function. Revenues should be distinguished between program revenues and general revenues. Program revenues are reported in the program or functions section of the statement. General revenues are not directly linked to any program orbfunction and reported in the bottom section of the statement. Program revenues are reported in the charges for services, operating grants and contributions and capital grants and contributions. Extraordinary items, special items, and transfers are reported separately on the government-wide statement of activities. Extraordinary items are both unusual in nature and infrequent in occurrence which is usually beyond the control of management. Special items are either unusual or infrequent and must be within the control of management. Used to account for the general administration and most traditional services of government. The General Fund is used to record the budgetary inflows and outflows estimated or authorized in the annual budget. In the Operating Statement Accounts the Revenues and Other Financing Sources increase fund balance when closed and are recognized on the Modified AccrualExpensive. Expenditures and Other Financing Uses decrease fund balance when closed and are recognized on the Modified Accrual basis. Periodically compare actual revenues to estimated revenues. Use a common classification scheme for revenues and estimated revenues. Estimated Revenues and Revenues are used to control similarly named columns...
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...generally refer either to working capital (current assets less current liabilities) or to selected components of working capital. 2. The accounting equation as applied in government accounting and not-for-profit accounting is essentially the same as that applied in business accounting. The primary difference is that in business, assets = liabilities + owner’s equity, whereas in government and not-for-profit entities, since there are no “owners” as the term is used in business, assets = liabilities + fund balance. 3. Nonspendable fund balance includes amounts that are not in spendable form or are required to be maintained intact. Restricted fund balance includes amounts constrained to specific purposes by their providers, through constitutional provisions, or by enabling legislation. Committed fund balance includes amounts constrained to specific purposes determined by the highest decision-making authority of the government itself. Assigned fund balance includes amounts a government intends to use for a specific purpose. 4. Governments establish funds neither to account for specific functions nor to divide evenly their resources. Instead, they create funds mainly to promote control and accountability over restricted resources. The general fund of the city is probably larger than all of the special revenue funds combined because most of the city’s assets are unrestricted and the unrestricted assets can be aggregated in a single fund. 5. There are no capital projects...
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...CHAPTER 5 : Public Sector Government Expenditure Government expenditure is divided into 2 categories; 1. Operating Expenditure Consist of payment for the emoluments, pensions, any debt services charges and other maintenance expenditure. 2. Development Expenditure Comprises of the expenditure of defence and internal security, social responsibility that includes education and health, and the expenditure to run the economics policy like granting subsidy and train workers Sources of Government Revenue There are 2 major sources of government revenues: 1. Non-taxes Selling of goods and services, grant from other countries (example: donations for tsunami victims), domestic loans (example: government bonds) and loan from overseas (example: IMF) 2. Taxes a) Direct tax * Where the burden of tax cannot be transferred to other parties. * Collected by Department of Inland Revenue * Main direct tax:- I. Personal income tax The tax is levied on gross income II. Corporate Tax Imposed on company’s profit whether it is earned at home or abroad. III. Petroleum Revenue Tax Tax is levied on all petroleum companies operating in Malaysia. IV. Capital Gain Tax Levied on the increase in the value of capital asset between the time of purchase and the time of sale (sale of shares, factories etc.) V. Other tax Stamp duties (agreements), motor vehicles duties b) Indirect Tax * Where the burden of tax can be passed on to other parties...
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...Q. 1 What is public finance? Answer: Public finance Public Finance is the study of Government activities and how the Government finance those activities.Collection of taxes from those who benefit from the provision of public goods by the government, and the use of those tax funds toward production and distribution of the public goods. Distinction between public finance and private finances. Answer: Difference between private and public finance: these are the differences between the private and public finance. 1: Adjustment of income and expenditure: a government first prepares an estimate of expenditure and then means to raise that sum and the individual must adjust his expenditure to his income. 2: Budgeting: the unit for the public budget is one year but an individual needs not balance his budget during a given period. 3: Deficit financing: deficit financing is a peculiar privilege of government but an individual can not do it, unless he is prepared to go behind the bars. 4: Different objectives: an individual tries to maximize his satisfaction or profit from a given amount of resources but the objective of government expenditure is to maximize social benefit. 5: Publicity of finance: budgets are published and the widest publicity is given to them. On the other hand, the secrecy surrounds individual finance. 6: Coercion: a government has to pass a law and compel the citizen to pay a tax while an individual lacks the coercive authority. How public...
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...Educational and Professional Development Unit – Form 603 Assignment Cover Sheet Student Name: Peter Navan Student Number: C00152237. I am a student as follows: Stage 3 Module title: Financial Management Assignment Question Answered: 1 Lecturer to correct this assignment: Dr. Philip Byrne Dates I attended module: 1st & 2nd May 2012. Date this assignment is due: 25.05.12 I hereby certify that the information contained in this (my submission) is information pertaining to research I conducted for this project. All information other than my own contribution will be fully referenced and listed in the relevant bibliography section at the rear of the project. ALL internet material must be referenced in the bibliography section. Students are encouraged to use the Harvard Referencing Standard. To use other author's written or electronic work is illegal (plagiarism) and may result in disciplinary action. Students may be required to undergo a viva (oral examination) if there is suspicion about the validity of submitted work. Signed: _________________________________ NOTE: 2 copies of form and 2 copies of the assignment to be submitted to: Irish Aviation Authority. For IAA use: Date stamped ( Logged onto IT System ( confirmation email sent to student ( I.A.A./I.T.C Degree Programme for Aviation, Transport and the Emergency Services Sector. Stage 3. 2011 - 2012 ...
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... | | | |3-1 |Distinguishing characteristics of fund-based and government-wide |Identify and describe |New | | |financial statements | | | |3-2 |Distinguishing direct and indirect expenses |Define and describe |New | |3-3 |Statement of activities format |Describe |3-2 revised | |3-4 |Program and general revenue |Distinguish |Same | |3-5 |Extraordinary compared with special items |Define and compare |3-5 expanded | |3-6 |Expenditure classifications—examples |Classify |Same | |3-7 |Temporary and permanent accounts |Distinguish |3-7 revised | |3-8 |Revenue classifications...
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...accepted definition: • Decline in real GDP that exceeds 10%, or one that lasts more than three years • Other alternative indicators: bursting of asset, credit bubble, fall in general price level 5 Examples of Depression (Using 10% GDP fall rule) 6 Economic Policy • Two main policy instruments to influence aggregate demand (C + I + G + X - M): – Fiscal Policy: • Through Government expenditure and revenue – Monetary policy: • Through Money supply and interest rates 7 Basic Logic of Demand Management (to ↑ demand) • Fiscal Policy: –↑G – ↓ income taxes to ↑ C – (Also: • ↑ tariff duties to reduce M • Provide incentives to ↑ X) • Monetary Policy: – ↓ rate of interest to ↑ C; ↑ I 8 Fiscal Policy and Demand Management in India 9 (see: http://indiabudget.nic.in) • • • • • • • • • • • • • Economic Survey (presented before the Budget) Annual Financial Statement Budget at a Glance Budget Speech Budget Highlights Action Taken on Budget Speech Receipts Budget Finance Bill Explanatory Memorandum Appropriation Bill (vote on account before 31 March) Demands for Grants (Expenditure budget) FRBM Act, 2003 Statements Detailed Demand for Grants Budget Documents...
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...WORKING PAPER SERIES Paper no. 01/2012 Fiscal Policy Evolution and Distributional Implications: The Indonesian experience Smitha Francis Abstract This paper analyses Indonesia’s resource mobilisation and public expenditure policies against the backdrop of her inequality trends and macroeconomic policy evolution. It is argued that the country’s fiscal policy stance has been adversely impacted by her monetary and financial sector policies under an open capital account, with attendant regressive distributional implications. Juxtaposing the analysis of revenue mobilisation trends and taxation policies with the evidence of increasing asset and land concentration and persisting high inequalities reveals that the increase in income tax revenue did not necessarily come from the upper income profiles or corporate profits. Meanwhile, although government expenditure to GDP ratio has improved after 2003, capital expenditures and social expenditures other than those in education continue to remain low. Further, the current pattern of fiscal decentralisation does not seem to be effective in addressing the existing disparities. JEL Classification H 200; H 500; H 700 Key Words Indonesia, fiscal policy, public finance, inequality, taxation, revenue, government expenditure, financial liberalisation, IMF debt conditionalities, decentralisation Smitha Francis is Principal Economist, Economic Research Foundation, New Delhi. Email for correspondence: smithafrancis@gmail.com THE IDEAs...
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...obsessed on possibilities if local governments were more independent of the central government. Federalism carries the benefit of decentralization to the max: greater efficiency because production of public goods and services is demand-driven, greater possibilities to make government officials accountable for their actions due to the proximity between the decision maker and his constituents, and, more opportunities for empowering communities through consultation and collaborative planning and implementation. This study puts some realism into proposals to organize the Philippine government into a federal government with several states. Realism entails estimating the resources required to enable a state to carry out basic functions of governance and the financial capability of the different administrative regions in the country. Basic indicators such as estimates of Regional Gross Domestic Product, local revenues, and regional collection of taxes and duties are used. The study starts with indicators on how centralized is the current system of governance and looks at scenarios where “states” can finance the requirements of governance. 1. How Big is the Philippine Government? The budget of the national government in 2008 was P1.23 trillion or 18.45 percent of our GDP in 2007. The biggest slice of the budget, 24.0 percent, went to the Debt Service Fund. The second largest expenditure was allotments to local governments, the IRA, which accounted for...
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...Rates (LIBOR) rates, foreign exchange rates, population growth, and other economic parameters. The Department of Finance (DOF), the Bureau of the Treasury, the Bureau of Internal Revenue and the Bureau of Customs help the DBCC in determining the sources of financing. They project the revenues that will be generated for the budget year as well as the borrowings that may have to be tapped. The DBCC determines the overall economic targets, expenditure levels, the revenue projection, deficit levels and the financing plan. It submits them to the President and the Cabinet for approval. Once these are approved, the DBM issues the Budget Call. This requires agencies to prepare their budgets in accordance with the said guidelines, macro-economic assumptions, and ceilings. The DBM spells out guidelines, procedures, and timetables. Agencies undertake their own internal consultations. They rank programs, projects and activities using the capital budgeting approach. Then they submit their budget estimates, taking into account their own priorities and those of the national government under the Medium-term Public Investment Program (MTPIP). The DBM then conducts technical budget hearings where agencies defend and justify their proposals. Organizational and budgetary issues are clarified. The proposed expenditure programs are...
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... a. A Comprehensive Annual Financial Report b. The basic financial statements c. The notes to the financial statements d. Required Supplemental Information and Basic Financial Statements | | | | |The Governmental Accounting Standards Board is the primary standard-setting body for: | | | | | |All governments. | | | | | |All state and local governments. | | | | | |All governments and all not-for-profit entities. | | | | | |All state and local governments and all not-for-profit entities. | | | | | | | | | | | |3. Which of the following is the most authoritative source of accounting standards for cities and counties? | | | | | |a. Current practices widely used by not-for-profit entities ...
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...city’s likely response to them II. Current state of, and trends in, the government’s operating environment A. Population 1. Age of population 2. Income level 3. Educational and skill level 4. Other relevant demographic factors B. Economic conditions 1. Wealth and income of citizenry (e.g. per capita net worth and income) 2. Major industries (and stability) 3. Unemployment rates 4. Value of property per capita 5. Sales tax base 6. Elasticity of revenues C. Political climate 1. Overall citizen satisfaction with government 2. “Liberal” or “conservative” citizen view as to role of government 3. Relations with state government and other local governments (e.g. those of surrounding and overlapping entities) 4. Citizen expectations D. Social conditions 1. Crime rates 2. Other measures of social well-being III. Changes likely to affect the government’s operating environment – and especially its finances – in the next five years A. Demographics...
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...for or on behalf of the State shall form one Consolidated Fund. The Consolidated Fund is the account into which the government deposits taxes, tariffs, excises, fines, fees, loans, income from Crown assets and other revenue once collected, together with transfer from the commonwealth, and from which it withdraws the money it requires to cover its expenditure. Before going further, the Accountant General of Malaysia in compliance with Section 16(1) of the Financial Procedure Act 1957 prepared The Federal Government Financial Statement and audited by the Auditor General before being tabled in the Parliament in compliance with Section 16(2) of the act. The preparation of The Federal Government Financial Statement is constructed to show the financial position, cash flow and financial performance of the government. These Financial Statements report all financial transaction pertaining to the sources and applications of the financial resources as appropriated by the parliament for respective financial year. Statement of Financial Position of the Federal Government shows the amount of cash and investment held in respect of three accounts of the Consolidated Fund which is Consolidated Revenue Account, Consolidated Loan Account and Consolidated Trust Account. In accordance with the cash basis accounting adopting by the Federal Government, only investment held for revenue and specific trust account are disclosed in the Statement of Financial Position and other investment are disclosed...
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... The Metropolitan Government of Nashville and Davidson County’s Department of Finance prepared the CAFR. 2. What is the length of the CAFR? The Length of the CAFR is 307 pages. 3. Describe briefly the form of government for The Metropolitan Government of Nashville and Davidson County. According to page viii, On April 1, 1963 the governments of the City of Nashville and Davidson County were consolidated into a single "Metropolitan Government of Nashville and Davidson County", under which the boundaries of the City of Nashville and Davidson County are coextensive. The executive and administrative powers are vested in the Mayor, who is elected at large for a four-year term. The Mayor is authorized to administer, supervise and control all departments and to appoint all members of boards and commissions. They also have a Vice-Mayor, who is elected at large for a four year term and is the presiding officer of the Council. The Council is composed of 40 members who are elected for four-year terms. 4. What two service district governments are included within the CAFR? General Services District and Urban Services District are included in the CAFR. 5. What are the three basic sections of the CAFR? Introductory section, Financial section, and Statistical section. 6. Certificate of Achievement for Excellence in Financial Reporting • Did this government receive this award and if so, for what year? According to page vii, the government received this award...
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