Q.

Hugh Dalton’s Classification of Public Expenditure:

1. Expenditures on political executives: i.e. maintenance of ceremonial heads of state, like the president.

2. Administrative expenditure: to maintain the general administration of the country, like government
department of offices.

3. Security expenditure: to maintain armed forces and the police forces.

4. expenditure on administration of justice : include maintenance of courts, judges, public prosecutors.

5. Developmental expenditures: to promote growth and development of the economy, like expenditure on
infrastructure irrigation, etc.

6. Social expenditures: on public health, community welfare, social security, etc.

7. Public debt charges: include payment of interest and repayment of principle amount.

Q. Short Note:

i) Revenue Budget: This financial statement includes the revenue receipts of the government ex: revenue
collected by way of taxes & other receipts.

ii) Capital Budget: This part of the budget includes receipts & expenditure on capital account projected
for the next financial year.

iii) Surplus Budget : The budget is a surplus budget when the estimated revenues of the year are greater
than anticipated expenditures.

iv) Deficit Budget: Deficit budget is one where the estimated government expenditure is more than
expected revenue.

Q. Non tax Revenues: Non tax revenue comprises all revenues apart from taxes accumulated to the
government. Non tax revenues are funds that are generated from internal sources.

Q. Important sources of Non tax revenues include:

a) Special Assessment: This tax is imposed to a certain category of members of a community who are
generally benefited from governmental activities or public functions like constructions of road, railways,
parks, etc.

b) Surplus of Public Enterprises: The government has arranged public sector enterprises that are
concerned in commercial activities.

c) Fees: A fee is a significant source of managerial non tax revenue charged by Governmental authorities
for depiction services to the members of the public.