Sources of Government Revenue and Expenditure

- A source is a point where something comes from.
- Revenue is income or money for the government.
- Expenditure is the way the money or revenue obtained is used.
- There are two levels of Government in Kenya; National Government and 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:

• Taxes
• Loans and grants
• Fees from major national facilities
• Rent from national houses and buildings
• Profits from parastatals
• Court fines
• Sale of treasury bonds and bills.

B. The county Governments get their revenue through:

• Special taxes called cess or levy.
• Parking fees.
• Grants from the National Government.
• Selling of trade licenses.
• Loans from financial institutions.
• Rents from County houses and buildings.

National and County Government Expenditure

A. The National Government spend their revenue in the following ways:

• Building of roads, hospitals, schools, dams, bridges, airports and seaports.
• Paying salaries to civil servants.
• Paying bills of water and electricity.

B. The County Governments spend their revenue in the following ways:

• Providing water, electricity and sewerage services.
• Paying salaries of County workers.
• Building rural roads.
• Building markets.