Introduction to Public Finance

In: Business and Management

Submitted By steadfastlove
Words 766
Pages 4
NATIONAL OPEN UNIVERSITY OF NIGERIA
COURSE CODE:
MPA
728
COURSE TITLE:
PUBLIC FINANCIAL MANAGEMENT
MPA
728
COURSE GUIDE ii MPA
728
PUBLIC FINANCIAL MANAGEMENT
Course Team
Mr. E. U. Abianga
(
Developer/
Writer)
-
NOUN
Dr. Bonaventure Nkup Haruna
(
Editor
)
-
UNIJOS
Dr. Dimis I. Mai
-
Lafia (Programme
Leader)
-
NOUN
Mr. E. U. Abianga
(Coordinator)
-
NOUN
NATIONAL OPEN UNIVERSITY OF NIGERIA
COURSE
GUIDE
MPA728
PUBLIC FINANCIAL MANAGEMENT
97
Source:
Koleade Oshisami (1992) quoted in Ola and Offiong
(2008). Government Accounting and Financial Control
Ibadan, Nigeria: Spectrum Books Limited, p. 55.
Rolling Plan in Nigeria’s Planning and Budgeting System
Owing to poor achievement of past eco nomic plans and poor budgetary implementation in Nigeria, the military administration in 1990, introduced the idea of a rolling plan based on three year perspective in order to address the planning and budgetary predicaments experienced in the past.
The a im of this planning was to make provision for a long term vision of the economy taking into consideration the goals of socio
-
economic development for the distant future of 5, 10, 15, 20, 25 or 30 years. This aimed at setting long term targets and objectiv es of economic development. The strategic plan is also aimed at addressing three basic issues of capital growth, technological progress and population growth.
This will serve as a background when preparing a medium or short term plan. The medium chosen f or Nigeria was three years plan while the short term is the annual budget hence, the framework of the rolling plan are three folds: the annual budgets representing the annual plan, the medium term plan representing the three years plan while the perspectiv e plan ranges from 25 to 30 years.
SELF
-
ASSESSMENT EXERCISE
2
What is the concept of government…...

Similar Documents

Introduction to Finance

...|[pic] |Course Syllabus | | |Albert Schweigert | | |FIN/200 | | |Introduction to Finance: Harvesting the Money Tree | Copyright © 2009, 2008, 2007 by University of Phoenix. All rights reserved. Course Description This course gives students an overview of finance concepts, terminology, and principles. It is an introduction to the role of finance in the business world. Topics covered include the relationship between finance and accounting, basic financial analysis and planning techniques, financial ratios, profit, cash flow, and sources of business financing. Policies Students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class.......

Words: 1280 - Pages: 6

Introduction to Public Relations

...Introduction to Public Relations What is Public Relations (PR) Public relations (PR) is the way organisations, companies and individuals communicate with the public and media. A PR specialist communicates with the target audience directly or indirectly through media with an aim to create and maintain a positive image and create a strong relationship with the audience. Examples include press releases, newsletters, public appearances, etc. as well as utilisation of the world wide web. PR and the World of Business The world of business is characterised by fierce competition and in order to win new customers and retain the existing ones, the firms have to distinguish themselves from the competition. But they also need to create and maintain a positive public image. A PR specialist or firm helps them both create and maintain a good reputation among both the media and the customers by communicating in their behalf and presenting their products, services and the overall operation in the best light possible. A positive public image helps create a strong relationship with the customers which in turn increases the sales. PR Tools and Techniques PR specialists and firms use a number of tools and techniques to boost their clients’ public image and help them form a meaningful relationship with the target audience. To achieve that, they use tools such as news releases and statements for media, newsletters, organisation and participation at public events conferences,......

Words: 400 - Pages: 2

Introduction to Finance

...Finance is the art and science of managing money. The fields of finance are: (1) Financial services and (2) Managerial finance. The primary concern of MGT 115 is the Managerial finance which covers financial affairs of business organizations. The financial manager is usually called the treasurer (small companies) or Chief Finance Officer (big companies). Controller: prepares financial statement Treasurer: analyzes and makes decisions using financial statements Assumptions: 1. As financial manager 2. Working in a publicly held corporation 3. Efficient market 1. As financial manager • We should think and solve problems like financial managers. • First, we need to understand their goal: maximize shareholder’s wealth • What represents shareholder’s wealth? Stock Prize (prize of the shares of the firm) Difference between profit maximization and shareholder’s wealth maximization Shareholder’s wealth maximization: considers timing, cash, and risk. Cash Profit is not equivalent to cash. If the net income of the firm increases, it does not mean that the money of the owner increases as well. However, if the stock price increases, shareholder’s wealth also increases. If you own 100 shares and each share costs P1,000, it is equivalent to P100,000 worth of shares. If the stock price increases from P1,000 to P1,100, the wealth increases to P110,000 worth of shares. Risk Profit maximization fails to account for risk. SWM considers risk as one of the factors......

Words: 504 - Pages: 3

Public Finance

...Public Finance Methods in Nigeria The Federal Republic of Nigeria is comprised of 36 states located in West Africa geographically bound by the Republic of Niger to the north, the Gulf of Guinea (on the Atlantic Ocean) to the south, the Republic of Cameroon and Chad on the east and Republic of Benin on the west. Since gaining full independence from the British in 1960, Nigeria has gone from a Parliamentary system of government (modeled after the British Parliament), the Biafran Civil War, and numerous dictatorships to the current Democratic system of government. Widely described as the most populous country in Africa (accounting for over half of West Africa’s population alone[i]), the US State Department estimated in 2010 a population of approximately 152 million people of 250 Ethnic groups with the largest ethnic groups comprising of Hausa-Fulani (north), Igbo (south-east), Yoruba (south-west) and Kanuri (north). The religions practiced in Nigeria are Islam, Christianity and indigenous African traditional worship. The Hausa’s are from the northern part of the country and are predominantly Muslims, the Yoruba are from the south west and are predominately an even mix of Christians and Muslims, the Igbos are from the southeast and are predominately Christians. The official language of Nigeria is English in addition to other local dialects. Nigeria’s commercial capital (and former political capital), Lagos, is located in the southwestern part of the country while the......

Words: 2474 - Pages: 10

Public Finance

... PUBLIC FINANCE BOWIE STATE UNIVERSITY FALL 2012 FINAL PROJECT KaRon Campbell December 12, 2012 As the Production Manager of a T-shirt company, I am proposing the purchase of a $1 Million stamping machine to increase output. I have calculated that the selling price of the 100 additional T-shirts per hour multiplied by the number of production hours per month, in addition to that two percent for the units that aren't rejected because of the quality of the machine output will result in a good total benefit. By dividing the purchase price by 12 months per year then divide that by the 10 years the machine should last, can be used to calculate the monthly cost of the machine. The manufacturer's specs describe what the power consumption of the machine is, so I can figure the cost of electricity to run the machine and add the purchase cost to get a total cost figure. Cost Benefit Analysis - Purchase of New Stamping Machine (Costs shown are per month and repaid over four years) 1. Purchase of Machine .................... -$20,000 includes interest and taxes 2. Installation of Machine ..................... -3,125 including screens & removal of existing stampers 3. Increased Revenue .......................... 27,520 net value of additional 100 units per hour, 1 shift/day, 5 days/week 4. Reduced material costs ...................... 1,128 purchase of bulk supply reduces cost by $0.82 per hundred 5. Reduced Labor Costs ....................... 18,585 3......

Words: 379 - Pages: 2

Public Finance

...subject of Public Finance such an important field in the study of economics. Government is made by the people for the people, and therefore government has the power to control resources based on what the people want. Sure, people don’t like to pay taxes. People would rather keep all of their money and spend it in the way that they’d like. However, people also know how important social security, Medicaid, and other governmental programs are to their future, and therefore are willing to pay taxes in exchange for the goods and services the government provides to its citizens. Essentially, it all comes down to an economic comparison between one option (no taxes and no governmental programs) versus another option (taxes and governmental programs), and how much people are willing to pay (money, opportunity costs, etc.) for one option versus another. Because taxation by the government is such an important subject to everyone, Public Finance is truly an important subject that affects everyone and is an important subject for everyone to learn about, since it affects their overall well-being. By know more about voting, government allocation of resources, redistribution programs, and other important topics in Public Finance, people can make better decisions about who to vote for and people can have a bigger say and better knowledge about how the government affects their income and lifestyle. It is the purpose of this paper to describe various important and broad topics in Public......

Words: 2309 - Pages: 10

Introduction to Finance

...Student Name | Tyece Wicker | Course and Section Number | Program of Study | FIN 1103 | Business | Finance FIN 1103 Week 4 Individual Work Money Management Assignment Instructions | To complete this assignment: 1. Answer all of the questions below in the space provided. 2. Reflect on the information presented in this week’s lesson and provide an insightful response to each question writing no more than two paragraphs. | Save and Submit to Dropbox | 1. Save your work as a Microsoft Word 2010 (.docx) file that includes your name, course code, and title in the file name. For example: JaneSmith_FIN1103_Week4.docx. 2. To submit your assignment, go to the Dropbox and click "Submit Assignment." 3. Click on the drop-down menu to select the Week 4: Individual Work basket in the Dropbox. | Objective: Outline the types of savings plans and calculate some of the related interest rates and account costs Locate the Financial Planning Exercises on page 166-167 of your textbook. Financial Planning Exercise Case 2: Victor and Maria Hernandez Need to Save Money Fast | The Hernandez family is experiencing some financial pressures, even though the couple has a combined income of $66,000. Also, their eldest son, Joseph, will start college in only three years. Maria is contemplating going to work full time to add about $25,000 to the family’s annual income. | a. How will this change in income affect the family’s emergency fund needs? | | b.......

Words: 407 - Pages: 2

Introduction to Finance

...Do the Math #1: Monthly Payments and Finance Charges. Kimberly Jensen and Rebecca Parker of Mankato, Minnesota, are both single. The pair share an apartment on the limited resources provided through Kimberly’s disability check from Social Security and Rebecca’s part-time job at a grocery store. The two grew tired of their old furniture and went shopping. A local store offered credit at an APR of 16 percent, with a maximum term of four years. The furniture they wish to purchase costs $2,800, with no down payment required. Using Table 7-1 or the Garman/Forgue companion website, make the following calculations: a) What is the amount of their monthly payment if they borrow for four years? b) What are the total finance charges over that four year period? c) How would the payment change if Kimberly and Rebecca reduced the loan term to three years? d) What are the total finance charges over that three-year period? e) How would the payment change if they could afford a down payment of $500 with four years of financing? f) What are the total finance charges over that four-year period given the $500 down payment? g) How would the payment change if they could afford a down payment of $500 with three years of financing? h) What are the total finance charges over that three-year period given the $500 down payment? Do the Math #5: Rule of 78s. Aaron Carson of Hays, Kansas, obtained a two-year installment loan for $1,500 to buy some furniture......

Words: 342 - Pages: 2

Introduction to Finance

... Student Name | | Course and Section Number | Program of Study | FIN 1103 | | Finance FIN 1103 Week 6 Individual Work Monthly Payments and Finance Charges, and the Rule of 78 Assignment Instructions | To complete this assignment: 1. Answer all of the questions below in the space provided. 2. Reflect on the information presented in this week’s lesson and provide an insightful response to each question writing no more than two paragraphs. | Save and Submit to Dropbox | 1. Save your work as a Microsoft Word 2010 (.docx) file that includes your name, course code, and title in the file name. For example: JaneSmith_FIN1103_Week6.docx. 2. To submit your assignment, go to the Dropbox and click "Submit Assignment." 3. Click on the drop-down menu to select the Week 6: Individual Work basket in the Dropbox. | Objective: Calculating the Cost of Credit Locate the Do the Math on page 218-219 of your textbook and complete number 1 and 5. Do the Math: Problem 1 Monthly Payments and Finance Charges | Kimberly Jensen and Rebecca Parker of Mankato, Minnesota, are both single. The pair share an apartment on the limited resources provided through Kimberly’s disability check from Social Security and Rebecca’s part-time job at a grocery store. The two grew tired of their old furniture and went shopping. A local store offered credit at an APR of 16 percent, with a maximum term of four years. The furniture they wish to purchase costs $2,800, with no down payment......

Words: 480 - Pages: 2

Introduction to Corporate Finance

...Chapter 1 Introduction to Corporate Finance Week 1 by Hee Soo Lee Learning Goals The basic types of financial management decisions and the role of the financial manager The financial implications of the different forms of business organization The goal of financial management The conflicts of interest that can arise between owners and managers The various types of financial markets      2 Chapter Structure 1.1 The Types of Firms 1.2 Ownership Versus Control of Corporations 1.3 The Stock Market    3 What is Corporate Finance?  Three important questions that are answered when you start your own business: - What long-term investments should you take on? (business type, building, machinery, and equipment?) - Where will you get the long-term financing to pay for the investment? (bring other owners or borrowing?) - How will you manage the everyday financial activities of the firm? (collecting from customers and paying suppliers)  Corporate finance is the study of ways to answer these three questions Finance can be defined as the art and science of managing money  Finance is concerned with the process, institutions, markets, and instruments involved in the transfer of money among individuals, businesses, and governments  4 Legal Forms of Business Organization Three major forms  Sole Proprietorship : business owned by a single individual  Partnership: business formed by two or......

Words: 1934 - Pages: 8

Public Finance

...PUBLIC FINANCIAL MANAGEMENT AND CONTROL LAW FIRST PART General Provisions FIRST SECTION Purpose, Scope and Definitions Purpose Article 1- The purpose of this Law is to regulate the structure and functioning of the public financial management, the preparation and implementation of the public budgets, the accounting and reporting of all financial transactions, and financial control in line with the politics and objectives covered in the development plans and programs, in order to ensure accountability, transparency and the effective, economic and efficient collection and utilization of public resources. Scope Article 2- This Law covers the financial management and control of public administrations within the scope of general government, encompassing public administrations within the scope of central government, social security institutions, and local administrations. Without prejudice to the provisions of international agreements, the utilization and control of European Union funds and domestic and foreign resources allocated to public administrations shall be subject to the provisions of this Law. (Amendment: 22.12.2005 - 5436/10-b art.) Regulatory and supervisory agencies are subject only to the Articles 3, 7, 8, 12, 15, 17, 18, 19, 25, 42, 43, 44, 47, 48, 49, 50, 51, 52, 53, 54, 68 and 76, 78 of this Law. Definitions Article 3- Particularly, in the enforcement of this Law; a) Public administrations within the......

Words: 19492 - Pages: 78

Public Finance

...Trezoreria Conceptul de Trezorerie a apărut ca rezultat al unei lungi evoluţii istorice, care a condus mai întâi la identificarea noţiunii de „ban public”, apoi la ideia de centralizare a acestuia sub o autoritate unică având scopul de a veghea la respectarea unui ansamblu de reguli speciale. Trezoreria: concept, conţinut Diversificarea şi intensitatea intervenţiilor statului, îndeosebi în domeniul economic, au impus redimensionarea importanţei Trezoreriei, având în vedere amploarea fluxurilor care se derulează prin intermediul său. În funcţie de modul în care statul s-a angajat sau dezangajat în viaţa economică, după cel de-al doilea război mondial, se pot evidenţia următoarele faze specifice în evoluţia Trezoreriei publice: * faza de expansiune, care a urmat războiului, în care Trezoreria a preluat insuficienţele pieţei şi ale circuitelor financiare, fiind singura instituţie care putea impune restricţii şi oferi avantaje; * faza de restrângere, specifică perioadei 1960 - 1975, în care Trezoreria a cunoscut o relativă dezangajare economică, s-a caracterizat prin transferul către alte organisme financiare sau către pieţe financiare a sarcinii acoperirii cheltuielilor publice suplimentare (aşa-numita debugetizare). Această fază a avut ca obiectiv revenirea la o Trezorerie neutră, dezangajată, care nu se implică în economie; * faza reconsiderării mecanismelor de intervenţie a statelor, amorsată la mijlocul anilor ’70, accentuând voluntarismul şi selectivitatea......

Words: 3920 - Pages: 16

Public Finance

...i) Concept of public finance The concept of public finance deals with the budgeting techniques of the income and expenditures of a public sector organization, normally a government or federal organization. Public finance is also termed as government finance and is an important sector of economics . The concept of public finance focuses on these relationships and functions may be considered special as they include: Procuring public goods, arranging and funding various transfers (particularly in the social area), directing entities existing in the economy towards socially desirable behaviours; for instance through taxes, penalties, subsidies and other stimuli and charges. In order to arrange the funding of the above-mentioned areas, there is a fiscal system (public budgeting system) whose aim is to collect the required amount of public revenue. Public revenue serves, at various levels of public budgets (governmental, regional and local), to fund public expenditures. Public expenditures, public revenue and particularly taxes may be considered to be the fundamental elements of public finance. Important terms derived from these three elements include deficit, public debt, budgetary policy and fiscal policy. The development of public finance is connected with economic mechanisms that should ideally lead to the effective and fair allocation of limited resources. ii) Major economic functions of any government in the world Governments have in charge different functions for......

Words: 1055 - Pages: 5

Public Finance

...ASSIGNMENT OF PUBLIC FINANCE ON The importance of broadening the Income Tax Base SUBMITTED TO Tanvir M H Arif, MIBM (UWL/TVU, UK); MBA (CU, BD) Assistant Professor, Department of Finance and Banking. University of Chittagong, Chittagong, Bangladesh. Ex-Asst. Professor, FBA, USTC ; Ex-Lecturer, AUB, Dhaka. And CEO, Corporate Trainer and Consultant (CTC), Chittagong, Bangladesh. UK Experiences: Adjunct Faculty of BRIT College, London Ambassador College and Nelson College. SUBMITTED BY GROUP D Group Profile| SERIAL NO.|NAME DETAILS|CLASS ID|E-MAIL ID| 01|SHAMIN JAHAN SHAWN|09303020|shahjahanh53@gmail.com[->0]| 02|JEWEL SHIL|09303036|takenfromlife@ymail.com[->1]| 03|TAMA SAHA|09303050|tama_cu@yahoo.com[->2]| 04|KUSHUM AKTER SOMA|09303056|Kushumsoma@yahoo.com[->3]| 05|DIPA BARUA|09303060|| 06|SHAMIM AKTHER|09303063|Shamim_cufb_17@yahoo.com| 07|HERO AKTER|09303085|hiruakter@gmail.com[->4]| 08| K. A.M. ATAUL ISLAM|09303111|hassanmrhridoy@ gmail.com| 09|MOHAMMAD JAMIR UDDIN |09303113|Jamir_cu@yahoo.com[->5]| 10|MEJBAH UDDIN AHMED|09303118|mejbah118@gmail.com[->6]| 11|BIBI JOYNUB CHOWDHURANI|09303126|| CONTENTS Chapter -1| Introductory Part| 1.1 Introduction1.2 Aims and Scope of the study1.3 Methodology of the study1.4 Vision of the study1.5 Limitations of the study| Chapter -2| Income Tax Background| 2.1 History of Income Tax2.2 Importance of Income Tax2.3 Drawback of Income Tax| Chapter -3| Tax...

Words: 13801 - Pages: 56

Public Sector Accounting and Finance

...PUBLIC SECTOR ACCOUNTING AND FINANCE 1.0. Introduction: One of the main distinguishing factors between public and private sector organisations lies in their objectives and sometimes funding structure. While public sector bodies have a more social objective and focus more on the allocation or distribution of public goods and services within the country, private sector bodies have the main objective of increasing the wealth of their shareholders (IFAC, 2011). However, both private and public sector bodies face similar operational and business challenges brought on by the economic environment and climate. A crucial question therefore is how to account for the activities of private sector bodies and public sector bodies in a way that reflects the operational structure of the organisation and yet their varying objectives (Barton, 2000). There exist two main schools of thought on the nature of accounting in the public sector, each of which is formulated by the view of the role of the public sector within the economy (Evans, 1995). The traditional method of accounting within public sector organisations has often advocated the use of the cash basis of accounting, with larger emphasis rather placed on compliance with the rules and regulations governing the sector (Wynne, 2003). However, weaknesses in public sector management have brought to the fore the importance of efficiency and hence the adoption of the accrual method of accounting within the public sector. According......

Words: 2482 - Pages: 10

Bomba (8) | For Apple iPhone 6 6s / 6 Plus Case Ultra Thin Slim Hard Cover+ Tempered Glass | Nissan Klappschlüssel Umbau Kit Primera Autoschlüssel Patrol Qashqai Micra Neu