Grade 6- Sources of Government Revenue and Expenditure

A source is a point where something comes from.

Revenue refer to the income or money generated for an organization or an individual. is money received by the government from taxes, custom duties, profit from state owned enterprise, capital markets and foreign aid

Expenditure refers to money spent by an organization or an individual. is the way the money or revenue obtained is used.

There are two levels of Government in Kenya

1. National Government

2. County Government

National and County Government Revenue

The two levels of Government get revenue in different ways.

A. National Government gets revenue in the following ways:

1. Taxes

2. Loans and grants

3. Fees from major national facilities

4. Rent from national houses and buildings

5. Profits from parastatals

6. Court fines

7. Sale of treasury bonds and bills.

B. The county Governments get their Revenue through

1. Special taxes called cess or levy.

2. Parking fees.

3. Grants from the National Government.

4. Selling of trade licenses.

5. Loans from financial institutions.

6. Rents from County houses and buildings.

National and County Government Expenditure

The National Government spend their revenue in the following ways:

1. Building of roads, hospitals, schools, dams, bridges, airports and seaports.

2. Paying salaries to civil servants.

3. Paying bills of water and electricity.

The County Governments spend their revenue in the following ways:

1. Providing water, electricity and sewerage services.

2. Paying salaries of County workers.

3. Building rural roads.

4. Building markets