Question

Can you decompose the elements of public expenditure in Ghana? Which sectors have the most share have been decreasing/increasing over time and why?

2. What is the structure of governments revenue (sources of revenue)?

Answer 1

The country of Ghana has been going through a period of transition for some years now. Here, a large number of poverty alleviation programs are being run by the government.The government is spending its money to meet the basic needs of the people of the country.

With the growth of oil sector in Ghana, people here have more possibilities and the means of employment are also bigger, which has increased the income of the government and the government can use these money to provide good education, good health, provide employment to people, provide better transport facilities. Keeping all these things in mind, the government is spending its money.

The government used to spend most money on basic needs like food in Ghana, but now with the development of industries and increase in income of the people there, now the government has spent on other facilities like better transportation, education, spending in health sector for better health of people, spending on new technologies has been increased.

The biggest source of government revenue is tax from the public. Government generally generates its revenue through two types of tax, direct tax and indirect tax. Direct tax put on people earning which income in excess of the limits set by a country. Indirect tax is the which is finally paid by the public on the purchase of all goods and services. Apart from these, many other types of taxes like corporate tax etc. are levied by the government on companies which make a profit of more than a fixed income, which becomes a means of revenue of the government.Foreign companies invest in India and earn profits and the government also generates revenue by taxing them.