APPROACHES USED BY THE GOVERNMENT IN GENERATING MORE REVENUE.

 

APPROACHES USED BY THE GOVERNMENT IN GENERATING MORE REVENUE.

Hello reader. Today I’ll be taking you through in detail some of the major approaches adopted by the government in generating more revenue. The current government have made an effort in more revenue generation with the major aim of eradicating and reducing money borrowing from other nations and money lending institutions. The government’s aim too is to ensure continued development may it be infrastructural or in terms of improving social amenities i.e. hospitals and schools , through the income generated within the country. Some of the major approaches used by the government in generating revenue are as elaborated below.

. Through licensing . For businesses to operate legally, the government issues licenses. These licenses are acquired after paying a certain fee . Business owners have the mandate to pay the amount so that they can be authorized legally by the government to carry out their business operations. Hence the government have been able to generate more revenue . This revenue obtained benefits the common mwananchii in the long run as the money is used in development projects and betterment of the social amenities used by these citizens. 

. Another approach used by the government in generating more revenue is through taxation. 

 Taxation occurs in many ways . Some of the examples of the taxes levied are:

             Income tax – tax levied on individual employment income.

             VAT- tax levied on consumption of normal commodities.

             Custom duty – tax levied on importation of goods.

             Excise duty – tax levied on production of certain commodities.

             Motor vehicle licenses, airport licenses among many other type of taxes.

This has facilitated effective collection of taxes as more tax is collected due to this huge tax base. The government have now been able to generate more income hence initiation and implementation of development projects have been effective and much easier recently. More citizens mostly the common citizen has now been able to enjoy the benefits accompanied by these major developments initiated by the government. In terms of roads, better roads have been developed hence linking the producers to the market has become much easier courtesy of the taxes collected. The low income earners have now been able to earn their own living and sustain their lives as well as improving their living standards.

. The government has generated more tax too through fines. 

  Fining law breakers have proven effective in revenue generation. The government have been able to collect more money as law breakers majorly the ones with minor cases are fined before their release. There are too many people nationwide committing minor crimes hence you can imagine the overall money generated through fining them . Hence through this approach, the government have managed to generate more money . Therefore national debt settlement as well as implementation of development projects have been efficient and effective.

. Through investments also , the government have been able to generate more revenue.

 Availability of parastatals and other major investments for example in selling treasure bonds as well as maybe investment in the housing sector have helped in the accumulation of more revenue for the government. These investments have played a significant role in government income generation. Hence the government have been able to pay some of the national debts , pay public workers as well as initiating public development projects aimed at benefiting all citizens in the country.

. Through eradication of corruption in public offices and institutions majorly those dealing with finances.

 Through implementation of this approach, money or revenue generated will be much safer hence no money will be squandered or used inappropriately. I’ll have to admit that corruption has been the major issue in the country. Squandering public funds as well as issuance of bribes have become rampant in the county hence through government efforts in the fight against corruption, more money will be generated and used appropriately. And in the long run, the normal mwananchi will be able to benefit .

This approaches have been implemented and if we all work together and cooperate , we’ll enjoy the benefits which comes with them. It’s true they might seem a bit hard to cope with normally for the common citizen; the poor but if we accept to bear the pain a little longer, we’ll surely benefit , live happily and develop as a nation. 

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