- 6 Marks
PSAF – Nov 2017 – L2 – Q1c – Public Sector Financing Initiatives
Calculate the total statutory amount to be transferred to the DACF and determine the equal share each local government would receive for the 2015 fiscal year.
Question
The following information was produced by the Ministry of Finance for the 2015 fiscal year:
Revenue Source GH¢ million
Grants 1,130.70
Non-Tax Revenue 4,358.70
Taxes on Income and Property 9,238.30
Taxes on Domestic Goods and Services 7,061.70
International Trade Taxes 4,051.10
Other Taxes 161.40
The 1992 Constitution and the District Assemblies Common Fund Act 455 require Parliament to annually allocate portions of national revenue into the District Assemblies Common Fund (DACF) for distribution to local governments.
Required:
i) Calculate the statutory total amount to be transferred into DACF required by law and grant policy for the 2015 fiscal year. (4 marks)
ii) Assuming that Parliament approves for an equal distribution of the DACF for 2015 to all local governments, how much would one typical local government in Ghana receive as its share of the DACF for the 2015 fiscal year for development? (2 marks)
Find Related Questions by Tags, levels, etc.
- Tags: DACF, Equal Distribution, Fiscal Allocation, Local Governments, National Revenue
- Level: Level 2
- Topic: Public sector financing initiatives
- Series: NOV 2017