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UNITED NAT IONS
r • AFRICAN INSTITUTE FOR ECONOMIC
IDEP/ET/VII/128 May
1964
~ DEVELOPMENT AND PLANNING
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DAKAR
1.
D. Carney FINANCIAL PROBLEMS AND POLICIES ( Course Oupline )
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A. Public Finance. -as a Part of Income Analysis (â) The analytical framework
(b) Rôle of Fiscal Policy in maintaining and increasing the level of National Income
(c) Limitations of Fiscal Policy and the Role of Monetary Policy (d) Functional Finance versus Compensatory Finance
B. Policy in Relation to Public Receipts and Expenditures
I. Receipts : (a) Politically acceptable distribution of <the burden of taxation
(i) Contribution of Economie Theory
(ii) Limitations of Conventi~nal Economie AnalysiR (iii) Concept of Taxable Capacity and its Limita~icn
(b) Assuring adequate revenues for various expendi tu~c·e obJectives from all possible sources, domestic and foreign.
(i) Sources of Revenue, scope and coverage (iii) Policy in regard to natural re sources and.
their contribution to public revenue
II. Expend,i turesJ (a) Long r:un : assuring economie growth wi th stabili ty (b) Short run : assuring effective public control of
public funds
most effective achievement of intentions of government in accordance with the wishes of the people
maximum level of short term expenditure compatible with long run objective
of economie growth and stability (i) Constitutional ~rrangements for assuring
effective control of public eY.p->nditure by the representatives of the people
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(ii) Administrative arrangements for ensuring
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·effectlvë control and use of public fuhds ··
-Role of Finance Ministryjtraditional
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Bulk purchasing j public tender~ng,
contracts and contract documents
III. Role vf proper classifica tian of government accounts for the rational pursuit and achievement of long and short term financial policies
Functional-economic classification of government accounts ( United Nations )
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Other classification systems •
IV. Functional-Economic Classification and Financial Planning, Long and Short term
C. Mobilization of Financial Resnurces for Economie and Social Development (a) Institutional setting - savings, commercial, industrial
and central banks, development institutions, loan and mortgage institutionsj etc •. ;
(b) Institutional Limitations in Africa -. the money and capital markets, lack of capital goods industries and technology- f
and evaluation of their effects on the private enterprise sec tor
(c) Role of gave; ~ment versus private entGrprise in resource mobilization in Africa and other develcij:ling' c·cmntries D. External Financial Sources and Problems
(a) Inté!'national - IJ3RDj IDA, IMF (b) National
(c) Compensatory financing of short-term adverse balance of payments and shortfalls in exte.rnal trade revenue by DIF (d) Private foreign investment and the transfer problem
C. Case Studies arid \rJ"orkshop on Classification of Goven: 11ent accounts in Africa
