National Revenue and Expenditure

A government has different sources of revenue used to fund operations. They do differ from government to government. Below is a list of sources of government revenue.

1. Taxes – they include Income Tax, Customs Duty and Value Added Tax.
2. Loans from World Bank and International Monetary Fund. These are usually repaid with interest.
3. Trade licenses.
4. Aid and grants from friendly countries. These are some form of gifts and do not need to be paid back.
5. Court fines.
6. Interest on government loans.
7. Dividends from shares bought by the government in profitable companies.
8. Rent paid by people occupying government houses and offices.
9. Rates paid by people who own property in urban areas.
10. Profits made by parastatal organizations.
11. Those in the tourism business pay some taxes to the bank.
12. Export from Kenya are sold earning the country income.
13. Profits earned on government loans
14. Profits made from sale of government property.
15. Money made from government institutions.

Forms of government expenditure

Here are ways in which governments use revenues collected:

1. Repaying loans.
2. Construction of roads, schools and hospitals.
3. Providing basic services like education, health and security.
4. Payment of salaries.
5. Repairing government facilities.
6. Buying supplies needed in government offices
7. Funding emergencies and unforeseen needs.
8. Funding counties and constituencies

Sources of county government revenue

1. Rates charged on county property
2. Entertained taxes.
3. Charges imposed on services provided by the county government.
4. Loans borrowed from the national government and approved by the County Assembly.
5. 15% revenue provided by the national government.
6. Sale of county government property.
7. Sale of trade licences.

Forms of county government expenditure

1. Paying salaries of county workers.
2. Repaying county debts.
3. Building and repairing county facilities
4. Buying county goods for development.
5. Funds for unforeseen needs and emergencies.

Role of government in the society

1. The Legislative arm of the government makes laws through parliament.
2. Protecting the rights and freedoms of its citizens.
3. Collecting revenue.
4. Improving the standards of living of the citizens.
5. Providing basic services such as health and education.
6. Providing security for all its citizens.
7. Paying salaries for all government employees.
8. Planning the expenditure for the country.
9. Preparing and reading the Budget on Budget day, on how the money collected is to be spent.
10. The government manages the natural resources.
11. Creates good relations between Kenya and other countries.
12. Develops and maintains infrastructure in the country.