| (a) (i) Direct taxes | |
| Company tax | - 240 |
| Worker' income tax | - 160 |
| Total | $400m |
| | |
| (ii) Indirect taxes | |
| Excise duties | - 80 |
| Taxes on exports | - 100 |
| Value Added Tax | - 150 |
| Import duties | - 90 |
| Total | $420m |
| | |
| (b) (i) Recurrent expenditure | |
| Payment of workers' salaries | - 150 |
| Government administration | - 200 |
| Maintenance of health facilities | - 220 |
| Maintenance of official vehicles | - 70 |
| Total | $640m |
| | |
| Capital expenditure | |
| Construction of roads | - 100 |
| Building of schools | - 120 |
| Extension of electricity | - 180 |
| Total | $400m |
(c) Indirect tax as percentage (%) of total revenue.
Indirect tax = $420m
Total Revenue - $860m
Therefore % = \(\frac{420}{860}\) x \(\frac{100}{1}\)
= 48.84%
(d) Non-tax revenue includes court fines, road tolls, grants, sales of government assets, licenses, royalties, aids, interest, dividends, rents and profit.
(e) Total revenue is $860 million.
Total expenditure is $1040 million
$860 - $1040 = - $180m
Since the total expenditure exceeds the total revenue, it is a budget deficit.
