Question 1 Report
The tables below show the expected revenues and projected expenditures from the budget of a hypothetical country in 1998. Use the information in the tables to answer the questions that follow.
EXPECTED REVENUE
| ITEM | AMOUNT ($ millions) |
| Rents, royalties and profits | 75.00 |
| Company income tax | 150.00 |
| Customs and excise duties | 300.20 |
| Personal income tax | 80.00 |
| Fees specific charges | 60.80 |
| Value added tax | 100.00 |
PROJECTED EXPENDITURE
| ITEM | AMOUNT ($ millions) |
| General administration | 220.10 |
| Maintenance of foreign missions | 50.00 |
| Transfer payments | 65.00 |
| Building of schools and hospitals | 200.00 |
| Road construction | 180.90 |
(a) Calculate the total revenue from
(i) direct taxes [3 marks]
(ii) indirect taxes [3 marks]
(iii) non-tax sources [3 marks]
(b) Determine the total
(i) capital expenditure [3 marks]
(ii) recurrent expenditure [3 marks]
(c) Determine whether the budget is a surplus or deficit. [5 marks]