Public Finance

1. Economic function of government

1.1. 1. Adjust the allocation of resources 2. Assist private sector to ensure economic stabilization 3. Create business environment 4. Redistribute income and wealth among the population 5. Provide a legal and social framework for the efeective operation of an economy

2. Types of tax structure

2.1. Propotion tax

2.2. Progressive tax

2.3. Regressive tax

3. Types of government budget

3.1. Balance budget (G=T)

3.2. Surplus budget (G < T)

3.3. Deficit budget (G>T)

4. Public finance in Islam

4.1. Zakat

4.2. Al-Fai

4.3. Jizyah

4.4. Kharaj

4.5. Waqaf

4.6. Sadaqah

4.7. Ushur

4.8. Taxation

5. Goverment Revenue

5.1. Money collected by a goverment from various sources

5.2. - taxes leveid on the incomes and wealth accumulation of individual - non taxes revenues - non-revenue receipt

6. Goverment expenditure

6.1. operating expenditure and development expenditures.

6.2. operating focuses on the operations and administration if the government department.

7. Fiscal Policy

7.1. Contractional

7.1.1. used by the federal government to slow down the economy

7.1.2. Implemented when there is an inflationary gap

7.2. Expansionary

7.2.1. used by the federal government to stimulate economic activities

7.2.2. Implemented when there is a deflationary or recessionary gap

8. Islamic government expenditure

8.1. Expenditure on tasks ordained by the Shariah

8.2. Expenditure necessary in the light of Shariah

8.3. Expenditures necessitated by tasks assigned to the state by the people