Skip to 0 minutes and 13 secondsIn Week 2, we examined how the public sector makes decisions about expenditures. In many countries, there is a tendency towards increasing the volume of public spending over time. This has helped expand the volume of public programmes, and to provide education, health and welfare services to all or most of the population. The size of the public sector, however, is controversial. Some argue that the public sector does not always use financial resources in an efficient and effective way. It is very important, then, that we make use of methods and techniques to appraise the performance of public sector spending. Next week, we will focus our attention on how public sector organisations acquire financial resources.

Skip to 0 minutes and 59 secondsWe will see that taxation is a main source of income for the public sector. There are several other ways for acquiring money, however, including user charges, concession fees, franchises, sale or renting of assets and exploitation of natural resources. Which ways of acquiring money work better than others? What kind of taxes result in greater sources of income? And what are the effects of levying taxes on the economy? Keep following the course next week, and we will share more perspectives on revenues in the public sector.

Coming up next week

Our video round-up of the activities and discussions we’ve examined looks back at Week 2.

This week we’ve looked at how the public sector makes decisions about expenditures. We now look forward to exploring how public sector organisations acquire financial resources, and which ways of acquiring money best serve both governments and the public.

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This video is from the free online course:

Understanding Public Financial Management: How Is Your Money Spent?

SOAS University of London