1

Fundamentals of Public Administration

MPA ndash 406Lecture - 30

FACILITATORProf Dr Mohammad Majid Mahmood

0333-5188677 majidbagramyahoocom

Reflections

BUDGET

Why Organizations Need Budget

A household is a small economy which uses inputs and gives output in the form of services that it provides

Likewise organizations use inputs and process inputs to give outputs

Organizations need to control the use of resources to ensure that these are utilized for the purpose of achieving the goals of organization

Budgets also indicate what the organizations plan to do in future4

BUDGETBudget

For any organization financial resources are an important input to the running of organization

Organization generates resources to make expenditures to produce goods amp services

Private organization price their product or services on the basis of value of the product or service and cost in producing product and in this way generate income

But organizations also create assets to produce output which are source of income 5

BUDGET

Definition of Budget

Budget is an instrument of financial control and management

It is summary of intended expenditures along with proposals for how to meet this expenditure

It is also detailed plan of income and expenses expected over a period of time

It provides guidelines for managing future investment and expenses

6

BUDGET

Components of Public Income

Just as households have income governments also have source of income

The source of income for the government is taxes

Taxes are of various types

Besides taxes government have non tax receipts

7

BUDGETComponents of Public Income

Following are the component of government income

Tax Receipt can be divided into direct and indirect taxes

Direct tax is levied on income

Indirect tax is not directly on income but is paid through a product or service being consumed by user

You might have purchased a bottle of Coca Cola or some other drink on which the price is written plus sales tax The sales tax is indirect tax 8

BUDGET

Use of Taxes

During the Moghul period and later British period government pursued the policy of laissez-faire (leave alone) which meant that government chooses not to interfere with the economy or society

The taxes that were collected were for the purpose of defence or law and order and the welfare concept was non existent

9

BUDGETPrinciple purpose of taxation

The governments of today have many sources of income but taxes remain an important source of income

Today governmentrsquos expenditures have also increased manifold

The main expenditure purpose is1Redistribution of income (from rich to poor) or help finance welfare activities and

2 To achieve economic objectives such as control of inflation economic growth employment and reduction of balance of payment deficit 10

BUDGETPrinciples of good TaxationSince the foundation of modern economy was laid there has been many changing ideas and philosophy on the role of government

Along side the idea and principle of good taxation has also evolved

Adam Smith the economist who wrote Wealth of Nation in 1776 said that a good tax has following four principles

1 A good tax should be equal an individual should be called upon to pay tax according to hisher ability to pay tax This is called progressive taxation where the rich pay the higher percentage of taxation then poor2 A good tax should be certain people are certain about how the tax works and how much has to be paid as well as when to pay

11

BUDGET

Principles of good Taxation

3 A good tax should be convenient People should be able to pay without any inconvenience

4 A good tax should be economical the cost of collecting and administering should not exceed revenues

12

BUDGETPrinciples of good Taxation

There are several other principles of modern taxation

These area Tax should be impartial two citizen who earn equal income and have same size of family should be taxed the sameb It should not be disincentive to hard work and therefore should not penalize for hard work ie that those who work hard and earn income should not be heavily taxedc The tax should be consistent with government policy If for example the government is trying to reduce inflation it should not pursue the policy of taxation which increases demand too much in the economy

13

BUDGETTypes of Taxation

Taxes tend to fall in two categories direct and indirect taxation

Direct taxation is a tax levied directly on individualrsquos income Whereas indirect taxation is levied on consumersrsquo expenditure or outlay

Following are the types of taxation1 Direct Taxes1048712 Income Tax1048712 Wealth Tax1048712 Workers Welfare Tax1048712 Capital tax

14

BUDGET2 Indirect Taxes1048712 Custom Duty1048712 Sales tax1048712 Excise Duty

3 Non- tax Revenue1048712 Income from Property and Enterprise1048712 Profit from Railways1048712 Profit from PTCL1048712 Profit from Post office1048712 Miscellaneous Foreign travel passport fee airport tax sale proceed on oil and tax etc

The government of Pakistan levies all the above type of taxes15

BUDGET

Advantages of Direct Taxes

Direct taxes tend to be progressive

People in the higher income groups pay greater taxes than poorpeople ie income tax is graduated so that high income earner pays a larger tax

Also projected wealth tax would apply to those owing more than a certain level of wealth

It is cheap and easy to collect Consider for example PAYE system which is used to collect income tax from wages and salary earner 16

BUDGET

Impact of TaxationTaxes have variety of impact as follows

On savings and investment Higher direct taxes reduce individualsrsquo and firmsrsquo ability to save and investTo a certain extent it depends on how much of the increase in taxes is financed from savings and how much from consumption

17

BUDGET

Impact of Taxation

On prices Higher direct taxes have deflationary effect on prices by reducing demand However trade unions may ask for higher wages to compensate for higher taxes and effect of this will be inflationary

18

BUDGET

Impact of Taxation

On economy Higher taxation will other things being equal reduce demand in the economy which will have deflationary effect on the economy

19

ADMINISTRATIVE CONTROLAdministrative AccountabilityAccording to Leonard D White accountability is lsquothe sum total of constitutional statutory administrative and judicial rules and precedents and the established practices by means of which publicofficials may be held accountable for their official actionsrsquo

It refers to the formal and specific location of responsibility vested in a person

While responsibility has a personal and moral connotations and is not necessarily related to formal status and power

Accountability is also defined as the answerability of a person in organization 20

ADMINISTRATIVE CONTROL

The Meaning of Control

Accountability is a kind of management Control

Control is the process of ensuring that actual activities conform to established standards and laid done procedures

Control helps managers to monitor the effectiveness of managers

21

ADMINISTRATIVE CONTROL

Types of Accountability

There are two types of accountability mechanism that make organizations to continue to achieve goals These are discussed below1Internal Control is exercised either by superior over the subordinates within the chain of hierarchy or by other parallel agencies in the executive branch of government

It consists of directing regulating supervising advising inspecting and evaluating

It should be continuously done without being felt This mechanism of accountability has positive results also 22

ADMINISTRATIVE CONTROL

Types of Accountability

2 External control is fitted outside the administrative machinery and works within the general constitutional framework of the system

It is exercised by the external bodies such as legislature and judiciary

23

Conclusion

24

Thank you for your kind attention

Thank you for your kind attention

FACILITATORProf Dr Mohammad Majid Mahmood

25

• Slide 1
• Slide 2
• Reflections
• BUDGET
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• Slide 15
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• ADMINISTRATIVE CONTROL
• Slide 21
• Slide 22
• Slide 23
• Conclusion
• Slide 25

Fundamentals of Public Administration

MPA ndash 406Lecture - 30

FACILITATORProf Dr Mohammad Majid Mahmood

0333-5188677 majidbagramyahoocom

Reflections

BUDGET

Why Organizations Need Budget

A household is a small economy which uses inputs and gives output in the form of services that it provides

Likewise organizations use inputs and process inputs to give outputs

Organizations need to control the use of resources to ensure that these are utilized for the purpose of achieving the goals of organization

Budgets also indicate what the organizations plan to do in future4

BUDGETBudget

For any organization financial resources are an important input to the running of organization

Organization generates resources to make expenditures to produce goods amp services

Private organization price their product or services on the basis of value of the product or service and cost in producing product and in this way generate income

But organizations also create assets to produce output which are source of income 5

BUDGET

Definition of Budget

Budget is an instrument of financial control and management

It is summary of intended expenditures along with proposals for how to meet this expenditure

It is also detailed plan of income and expenses expected over a period of time

It provides guidelines for managing future investment and expenses

6

BUDGET

Components of Public Income

Just as households have income governments also have source of income

The source of income for the government is taxes

Taxes are of various types

Besides taxes government have non tax receipts

7

BUDGETComponents of Public Income

Following are the component of government income

Tax Receipt can be divided into direct and indirect taxes

Direct tax is levied on income

Indirect tax is not directly on income but is paid through a product or service being consumed by user

You might have purchased a bottle of Coca Cola or some other drink on which the price is written plus sales tax The sales tax is indirect tax 8

BUDGET

Use of Taxes

During the Moghul period and later British period government pursued the policy of laissez-faire (leave alone) which meant that government chooses not to interfere with the economy or society

The taxes that were collected were for the purpose of defence or law and order and the welfare concept was non existent

9

BUDGETPrinciple purpose of taxation

The governments of today have many sources of income but taxes remain an important source of income

Today governmentrsquos expenditures have also increased manifold

The main expenditure purpose is1Redistribution of income (from rich to poor) or help finance welfare activities and

2 To achieve economic objectives such as control of inflation economic growth employment and reduction of balance of payment deficit 10

BUDGETPrinciples of good TaxationSince the foundation of modern economy was laid there has been many changing ideas and philosophy on the role of government

Along side the idea and principle of good taxation has also evolved

Adam Smith the economist who wrote Wealth of Nation in 1776 said that a good tax has following four principles

1 A good tax should be equal an individual should be called upon to pay tax according to hisher ability to pay tax This is called progressive taxation where the rich pay the higher percentage of taxation then poor2 A good tax should be certain people are certain about how the tax works and how much has to be paid as well as when to pay

11

BUDGET

Principles of good Taxation

3 A good tax should be convenient People should be able to pay without any inconvenience

4 A good tax should be economical the cost of collecting and administering should not exceed revenues

12

BUDGETPrinciples of good Taxation

There are several other principles of modern taxation

These area Tax should be impartial two citizen who earn equal income and have same size of family should be taxed the sameb It should not be disincentive to hard work and therefore should not penalize for hard work ie that those who work hard and earn income should not be heavily taxedc The tax should be consistent with government policy If for example the government is trying to reduce inflation it should not pursue the policy of taxation which increases demand too much in the economy

13

BUDGETTypes of Taxation

Taxes tend to fall in two categories direct and indirect taxation

Direct taxation is a tax levied directly on individualrsquos income Whereas indirect taxation is levied on consumersrsquo expenditure or outlay

Following are the types of taxation1 Direct Taxes1048712 Income Tax1048712 Wealth Tax1048712 Workers Welfare Tax1048712 Capital tax

14

BUDGET2 Indirect Taxes1048712 Custom Duty1048712 Sales tax1048712 Excise Duty

3 Non- tax Revenue1048712 Income from Property and Enterprise1048712 Profit from Railways1048712 Profit from PTCL1048712 Profit from Post office1048712 Miscellaneous Foreign travel passport fee airport tax sale proceed on oil and tax etc

The government of Pakistan levies all the above type of taxes15

BUDGET

Advantages of Direct Taxes

Direct taxes tend to be progressive

People in the higher income groups pay greater taxes than poorpeople ie income tax is graduated so that high income earner pays a larger tax

Also projected wealth tax would apply to those owing more than a certain level of wealth

It is cheap and easy to collect Consider for example PAYE system which is used to collect income tax from wages and salary earner 16

BUDGET

Impact of TaxationTaxes have variety of impact as follows

On savings and investment Higher direct taxes reduce individualsrsquo and firmsrsquo ability to save and investTo a certain extent it depends on how much of the increase in taxes is financed from savings and how much from consumption

17

BUDGET

Impact of Taxation

On prices Higher direct taxes have deflationary effect on prices by reducing demand However trade unions may ask for higher wages to compensate for higher taxes and effect of this will be inflationary

18

BUDGET

Impact of Taxation

On economy Higher taxation will other things being equal reduce demand in the economy which will have deflationary effect on the economy

19

ADMINISTRATIVE CONTROLAdministrative AccountabilityAccording to Leonard D White accountability is lsquothe sum total of constitutional statutory administrative and judicial rules and precedents and the established practices by means of which publicofficials may be held accountable for their official actionsrsquo

It refers to the formal and specific location of responsibility vested in a person

While responsibility has a personal and moral connotations and is not necessarily related to formal status and power

Accountability is also defined as the answerability of a person in organization 20

ADMINISTRATIVE CONTROL

The Meaning of Control

Accountability is a kind of management Control

Control is the process of ensuring that actual activities conform to established standards and laid done procedures

Control helps managers to monitor the effectiveness of managers

21

ADMINISTRATIVE CONTROL

Types of Accountability

There are two types of accountability mechanism that make organizations to continue to achieve goals These are discussed below1Internal Control is exercised either by superior over the subordinates within the chain of hierarchy or by other parallel agencies in the executive branch of government

It consists of directing regulating supervising advising inspecting and evaluating

It should be continuously done without being felt This mechanism of accountability has positive results also 22

ADMINISTRATIVE CONTROL

Types of Accountability

2 External control is fitted outside the administrative machinery and works within the general constitutional framework of the system

It is exercised by the external bodies such as legislature and judiciary

23

Conclusion

24

Thank you for your kind attention

Thank you for your kind attention

FACILITATORProf Dr Mohammad Majid Mahmood

25

• Slide 1
• Slide 2
• Reflections
• BUDGET
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• Slide 15
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• ADMINISTRATIVE CONTROL
• Slide 21
• Slide 22
• Slide 23
• Conclusion
• Slide 25

Reflections

BUDGET

Why Organizations Need Budget

A household is a small economy which uses inputs and gives output in the form of services that it provides

Likewise organizations use inputs and process inputs to give outputs

Organizations need to control the use of resources to ensure that these are utilized for the purpose of achieving the goals of organization

Budgets also indicate what the organizations plan to do in future4

BUDGETBudget

For any organization financial resources are an important input to the running of organization

Organization generates resources to make expenditures to produce goods amp services

Private organization price their product or services on the basis of value of the product or service and cost in producing product and in this way generate income

But organizations also create assets to produce output which are source of income 5

BUDGET

Definition of Budget

Budget is an instrument of financial control and management

It is summary of intended expenditures along with proposals for how to meet this expenditure

It is also detailed plan of income and expenses expected over a period of time

It provides guidelines for managing future investment and expenses

6

BUDGET

Components of Public Income

Just as households have income governments also have source of income

The source of income for the government is taxes

Taxes are of various types

Besides taxes government have non tax receipts

7

BUDGETComponents of Public Income

Following are the component of government income

Tax Receipt can be divided into direct and indirect taxes

Direct tax is levied on income

Indirect tax is not directly on income but is paid through a product or service being consumed by user

You might have purchased a bottle of Coca Cola or some other drink on which the price is written plus sales tax The sales tax is indirect tax 8

BUDGET

Use of Taxes

During the Moghul period and later British period government pursued the policy of laissez-faire (leave alone) which meant that government chooses not to interfere with the economy or society

The taxes that were collected were for the purpose of defence or law and order and the welfare concept was non existent

9

BUDGETPrinciple purpose of taxation

The governments of today have many sources of income but taxes remain an important source of income

Today governmentrsquos expenditures have also increased manifold

The main expenditure purpose is1Redistribution of income (from rich to poor) or help finance welfare activities and

2 To achieve economic objectives such as control of inflation economic growth employment and reduction of balance of payment deficit 10

BUDGETPrinciples of good TaxationSince the foundation of modern economy was laid there has been many changing ideas and philosophy on the role of government

Along side the idea and principle of good taxation has also evolved

Adam Smith the economist who wrote Wealth of Nation in 1776 said that a good tax has following four principles

1 A good tax should be equal an individual should be called upon to pay tax according to hisher ability to pay tax This is called progressive taxation where the rich pay the higher percentage of taxation then poor2 A good tax should be certain people are certain about how the tax works and how much has to be paid as well as when to pay

11

BUDGET

Principles of good Taxation

3 A good tax should be convenient People should be able to pay without any inconvenience

4 A good tax should be economical the cost of collecting and administering should not exceed revenues

12

BUDGETPrinciples of good Taxation

There are several other principles of modern taxation

These area Tax should be impartial two citizen who earn equal income and have same size of family should be taxed the sameb It should not be disincentive to hard work and therefore should not penalize for hard work ie that those who work hard and earn income should not be heavily taxedc The tax should be consistent with government policy If for example the government is trying to reduce inflation it should not pursue the policy of taxation which increases demand too much in the economy

13

BUDGETTypes of Taxation

Taxes tend to fall in two categories direct and indirect taxation

Direct taxation is a tax levied directly on individualrsquos income Whereas indirect taxation is levied on consumersrsquo expenditure or outlay

Following are the types of taxation1 Direct Taxes1048712 Income Tax1048712 Wealth Tax1048712 Workers Welfare Tax1048712 Capital tax

14

BUDGET2 Indirect Taxes1048712 Custom Duty1048712 Sales tax1048712 Excise Duty

3 Non- tax Revenue1048712 Income from Property and Enterprise1048712 Profit from Railways1048712 Profit from PTCL1048712 Profit from Post office1048712 Miscellaneous Foreign travel passport fee airport tax sale proceed on oil and tax etc

The government of Pakistan levies all the above type of taxes15

BUDGET

Advantages of Direct Taxes

Direct taxes tend to be progressive

People in the higher income groups pay greater taxes than poorpeople ie income tax is graduated so that high income earner pays a larger tax

Also projected wealth tax would apply to those owing more than a certain level of wealth

It is cheap and easy to collect Consider for example PAYE system which is used to collect income tax from wages and salary earner 16

BUDGET

Impact of TaxationTaxes have variety of impact as follows

On savings and investment Higher direct taxes reduce individualsrsquo and firmsrsquo ability to save and investTo a certain extent it depends on how much of the increase in taxes is financed from savings and how much from consumption

17

BUDGET

Impact of Taxation

On prices Higher direct taxes have deflationary effect on prices by reducing demand However trade unions may ask for higher wages to compensate for higher taxes and effect of this will be inflationary

18

BUDGET

Impact of Taxation

On economy Higher taxation will other things being equal reduce demand in the economy which will have deflationary effect on the economy

19

ADMINISTRATIVE CONTROLAdministrative AccountabilityAccording to Leonard D White accountability is lsquothe sum total of constitutional statutory administrative and judicial rules and precedents and the established practices by means of which publicofficials may be held accountable for their official actionsrsquo

It refers to the formal and specific location of responsibility vested in a person

While responsibility has a personal and moral connotations and is not necessarily related to formal status and power

Accountability is also defined as the answerability of a person in organization 20

ADMINISTRATIVE CONTROL

The Meaning of Control

Accountability is a kind of management Control

Control is the process of ensuring that actual activities conform to established standards and laid done procedures

Control helps managers to monitor the effectiveness of managers

21

ADMINISTRATIVE CONTROL

Types of Accountability

There are two types of accountability mechanism that make organizations to continue to achieve goals These are discussed below1Internal Control is exercised either by superior over the subordinates within the chain of hierarchy or by other parallel agencies in the executive branch of government

It consists of directing regulating supervising advising inspecting and evaluating

It should be continuously done without being felt This mechanism of accountability has positive results also 22

ADMINISTRATIVE CONTROL

Types of Accountability

2 External control is fitted outside the administrative machinery and works within the general constitutional framework of the system

It is exercised by the external bodies such as legislature and judiciary

23

Conclusion

24

Thank you for your kind attention

Thank you for your kind attention

FACILITATORProf Dr Mohammad Majid Mahmood

25

• Slide 1
• Slide 2
• Reflections
• BUDGET
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• Slide 15
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• ADMINISTRATIVE CONTROL
• Slide 21
• Slide 22
• Slide 23
• Conclusion
• Slide 25

BUDGET

Why Organizations Need Budget

A household is a small economy which uses inputs and gives output in the form of services that it provides

Likewise organizations use inputs and process inputs to give outputs

Organizations need to control the use of resources to ensure that these are utilized for the purpose of achieving the goals of organization

Budgets also indicate what the organizations plan to do in future4

BUDGETBudget

For any organization financial resources are an important input to the running of organization

Organization generates resources to make expenditures to produce goods amp services

Private organization price their product or services on the basis of value of the product or service and cost in producing product and in this way generate income

But organizations also create assets to produce output which are source of income 5

BUDGET

Definition of Budget

Budget is an instrument of financial control and management

It is summary of intended expenditures along with proposals for how to meet this expenditure

It is also detailed plan of income and expenses expected over a period of time

It provides guidelines for managing future investment and expenses

6

BUDGET

Components of Public Income

Just as households have income governments also have source of income

The source of income for the government is taxes

Taxes are of various types

Besides taxes government have non tax receipts

7

BUDGETComponents of Public Income

Following are the component of government income

Tax Receipt can be divided into direct and indirect taxes

Direct tax is levied on income

Indirect tax is not directly on income but is paid through a product or service being consumed by user

You might have purchased a bottle of Coca Cola or some other drink on which the price is written plus sales tax The sales tax is indirect tax 8

BUDGET

Use of Taxes

During the Moghul period and later British period government pursued the policy of laissez-faire (leave alone) which meant that government chooses not to interfere with the economy or society

The taxes that were collected were for the purpose of defence or law and order and the welfare concept was non existent

9

BUDGETPrinciple purpose of taxation

The governments of today have many sources of income but taxes remain an important source of income

Today governmentrsquos expenditures have also increased manifold

The main expenditure purpose is1Redistribution of income (from rich to poor) or help finance welfare activities and

2 To achieve economic objectives such as control of inflation economic growth employment and reduction of balance of payment deficit 10

BUDGETPrinciples of good TaxationSince the foundation of modern economy was laid there has been many changing ideas and philosophy on the role of government

Along side the idea and principle of good taxation has also evolved

Adam Smith the economist who wrote Wealth of Nation in 1776 said that a good tax has following four principles

1 A good tax should be equal an individual should be called upon to pay tax according to hisher ability to pay tax This is called progressive taxation where the rich pay the higher percentage of taxation then poor2 A good tax should be certain people are certain about how the tax works and how much has to be paid as well as when to pay

11

BUDGET

Principles of good Taxation

3 A good tax should be convenient People should be able to pay without any inconvenience

4 A good tax should be economical the cost of collecting and administering should not exceed revenues

12

BUDGETPrinciples of good Taxation

There are several other principles of modern taxation

These area Tax should be impartial two citizen who earn equal income and have same size of family should be taxed the sameb It should not be disincentive to hard work and therefore should not penalize for hard work ie that those who work hard and earn income should not be heavily taxedc The tax should be consistent with government policy If for example the government is trying to reduce inflation it should not pursue the policy of taxation which increases demand too much in the economy

13

BUDGETTypes of Taxation

Taxes tend to fall in two categories direct and indirect taxation

Direct taxation is a tax levied directly on individualrsquos income Whereas indirect taxation is levied on consumersrsquo expenditure or outlay

Following are the types of taxation1 Direct Taxes1048712 Income Tax1048712 Wealth Tax1048712 Workers Welfare Tax1048712 Capital tax

14

BUDGET2 Indirect Taxes1048712 Custom Duty1048712 Sales tax1048712 Excise Duty

3 Non- tax Revenue1048712 Income from Property and Enterprise1048712 Profit from Railways1048712 Profit from PTCL1048712 Profit from Post office1048712 Miscellaneous Foreign travel passport fee airport tax sale proceed on oil and tax etc

The government of Pakistan levies all the above type of taxes15

BUDGET

Advantages of Direct Taxes

Direct taxes tend to be progressive

People in the higher income groups pay greater taxes than poorpeople ie income tax is graduated so that high income earner pays a larger tax

Also projected wealth tax would apply to those owing more than a certain level of wealth

It is cheap and easy to collect Consider for example PAYE system which is used to collect income tax from wages and salary earner 16

BUDGET

Impact of TaxationTaxes have variety of impact as follows

On savings and investment Higher direct taxes reduce individualsrsquo and firmsrsquo ability to save and investTo a certain extent it depends on how much of the increase in taxes is financed from savings and how much from consumption

17

BUDGET

Impact of Taxation

On prices Higher direct taxes have deflationary effect on prices by reducing demand However trade unions may ask for higher wages to compensate for higher taxes and effect of this will be inflationary

18

BUDGET

Impact of Taxation

On economy Higher taxation will other things being equal reduce demand in the economy which will have deflationary effect on the economy

19

ADMINISTRATIVE CONTROLAdministrative AccountabilityAccording to Leonard D White accountability is lsquothe sum total of constitutional statutory administrative and judicial rules and precedents and the established practices by means of which publicofficials may be held accountable for their official actionsrsquo

It refers to the formal and specific location of responsibility vested in a person

While responsibility has a personal and moral connotations and is not necessarily related to formal status and power

Accountability is also defined as the answerability of a person in organization 20

ADMINISTRATIVE CONTROL

The Meaning of Control

Accountability is a kind of management Control

Control is the process of ensuring that actual activities conform to established standards and laid done procedures

Control helps managers to monitor the effectiveness of managers

21

ADMINISTRATIVE CONTROL

Types of Accountability

There are two types of accountability mechanism that make organizations to continue to achieve goals These are discussed below1Internal Control is exercised either by superior over the subordinates within the chain of hierarchy or by other parallel agencies in the executive branch of government

It consists of directing regulating supervising advising inspecting and evaluating

It should be continuously done without being felt This mechanism of accountability has positive results also 22

ADMINISTRATIVE CONTROL

Types of Accountability

2 External control is fitted outside the administrative machinery and works within the general constitutional framework of the system

It is exercised by the external bodies such as legislature and judiciary

23

Conclusion

24

Thank you for your kind attention

Thank you for your kind attention

FACILITATORProf Dr Mohammad Majid Mahmood

25

• Slide 1
• Slide 2
• Reflections
• BUDGET
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• Slide 15
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• ADMINISTRATIVE CONTROL
• Slide 21
• Slide 22
• Slide 23
• Conclusion
• Slide 25

BUDGETBudget

For any organization financial resources are an important input to the running of organization

Organization generates resources to make expenditures to produce goods amp services

Private organization price their product or services on the basis of value of the product or service and cost in producing product and in this way generate income

But organizations also create assets to produce output which are source of income 5

BUDGET

Definition of Budget

Budget is an instrument of financial control and management

It is summary of intended expenditures along with proposals for how to meet this expenditure

It is also detailed plan of income and expenses expected over a period of time

It provides guidelines for managing future investment and expenses

6

BUDGET

Components of Public Income

Just as households have income governments also have source of income

The source of income for the government is taxes

Taxes are of various types

Besides taxes government have non tax receipts

7

BUDGETComponents of Public Income

Following are the component of government income

Tax Receipt can be divided into direct and indirect taxes

Direct tax is levied on income

Indirect tax is not directly on income but is paid through a product or service being consumed by user

You might have purchased a bottle of Coca Cola or some other drink on which the price is written plus sales tax The sales tax is indirect tax 8

BUDGET

Use of Taxes

During the Moghul period and later British period government pursued the policy of laissez-faire (leave alone) which meant that government chooses not to interfere with the economy or society

The taxes that were collected were for the purpose of defence or law and order and the welfare concept was non existent

9

BUDGETPrinciple purpose of taxation

The governments of today have many sources of income but taxes remain an important source of income

Today governmentrsquos expenditures have also increased manifold

The main expenditure purpose is1Redistribution of income (from rich to poor) or help finance welfare activities and

2 To achieve economic objectives such as control of inflation economic growth employment and reduction of balance of payment deficit 10

BUDGETPrinciples of good TaxationSince the foundation of modern economy was laid there has been many changing ideas and philosophy on the role of government

Along side the idea and principle of good taxation has also evolved

Adam Smith the economist who wrote Wealth of Nation in 1776 said that a good tax has following four principles

1 A good tax should be equal an individual should be called upon to pay tax according to hisher ability to pay tax This is called progressive taxation where the rich pay the higher percentage of taxation then poor2 A good tax should be certain people are certain about how the tax works and how much has to be paid as well as when to pay

11

BUDGET

Principles of good Taxation

3 A good tax should be convenient People should be able to pay without any inconvenience

4 A good tax should be economical the cost of collecting and administering should not exceed revenues

12

BUDGETPrinciples of good Taxation

There are several other principles of modern taxation

These area Tax should be impartial two citizen who earn equal income and have same size of family should be taxed the sameb It should not be disincentive to hard work and therefore should not penalize for hard work ie that those who work hard and earn income should not be heavily taxedc The tax should be consistent with government policy If for example the government is trying to reduce inflation it should not pursue the policy of taxation which increases demand too much in the economy

13

BUDGETTypes of Taxation

Taxes tend to fall in two categories direct and indirect taxation

Direct taxation is a tax levied directly on individualrsquos income Whereas indirect taxation is levied on consumersrsquo expenditure or outlay

Following are the types of taxation1 Direct Taxes1048712 Income Tax1048712 Wealth Tax1048712 Workers Welfare Tax1048712 Capital tax

14

BUDGET2 Indirect Taxes1048712 Custom Duty1048712 Sales tax1048712 Excise Duty

3 Non- tax Revenue1048712 Income from Property and Enterprise1048712 Profit from Railways1048712 Profit from PTCL1048712 Profit from Post office1048712 Miscellaneous Foreign travel passport fee airport tax sale proceed on oil and tax etc

The government of Pakistan levies all the above type of taxes15

BUDGET

Advantages of Direct Taxes

Direct taxes tend to be progressive

People in the higher income groups pay greater taxes than poorpeople ie income tax is graduated so that high income earner pays a larger tax

Also projected wealth tax would apply to those owing more than a certain level of wealth

It is cheap and easy to collect Consider for example PAYE system which is used to collect income tax from wages and salary earner 16

BUDGET

Impact of TaxationTaxes have variety of impact as follows

On savings and investment Higher direct taxes reduce individualsrsquo and firmsrsquo ability to save and investTo a certain extent it depends on how much of the increase in taxes is financed from savings and how much from consumption

17

BUDGET

Impact of Taxation

On prices Higher direct taxes have deflationary effect on prices by reducing demand However trade unions may ask for higher wages to compensate for higher taxes and effect of this will be inflationary

18

BUDGET

Impact of Taxation

On economy Higher taxation will other things being equal reduce demand in the economy which will have deflationary effect on the economy

19

ADMINISTRATIVE CONTROLAdministrative AccountabilityAccording to Leonard D White accountability is lsquothe sum total of constitutional statutory administrative and judicial rules and precedents and the established practices by means of which publicofficials may be held accountable for their official actionsrsquo

It refers to the formal and specific location of responsibility vested in a person

While responsibility has a personal and moral connotations and is not necessarily related to formal status and power

Accountability is also defined as the answerability of a person in organization 20

ADMINISTRATIVE CONTROL

The Meaning of Control

Accountability is a kind of management Control

Control is the process of ensuring that actual activities conform to established standards and laid done procedures

Control helps managers to monitor the effectiveness of managers

21

ADMINISTRATIVE CONTROL

Types of Accountability

There are two types of accountability mechanism that make organizations to continue to achieve goals These are discussed below1Internal Control is exercised either by superior over the subordinates within the chain of hierarchy or by other parallel agencies in the executive branch of government

It consists of directing regulating supervising advising inspecting and evaluating

It should be continuously done without being felt This mechanism of accountability has positive results also 22

ADMINISTRATIVE CONTROL

Types of Accountability

2 External control is fitted outside the administrative machinery and works within the general constitutional framework of the system

It is exercised by the external bodies such as legislature and judiciary

23

Conclusion

24

Thank you for your kind attention

Thank you for your kind attention

FACILITATORProf Dr Mohammad Majid Mahmood

25

• Slide 1
• Slide 2
• Reflections
• BUDGET
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• Slide 15
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• ADMINISTRATIVE CONTROL
• Slide 21
• Slide 22
• Slide 23
• Conclusion
• Slide 25

BUDGET

Definition of Budget

Budget is an instrument of financial control and management

It is summary of intended expenditures along with proposals for how to meet this expenditure

It is also detailed plan of income and expenses expected over a period of time

It provides guidelines for managing future investment and expenses

6

BUDGET

Components of Public Income

Just as households have income governments also have source of income

The source of income for the government is taxes

Taxes are of various types

Besides taxes government have non tax receipts

7

BUDGETComponents of Public Income

Following are the component of government income

Tax Receipt can be divided into direct and indirect taxes

Direct tax is levied on income

Indirect tax is not directly on income but is paid through a product or service being consumed by user

You might have purchased a bottle of Coca Cola or some other drink on which the price is written plus sales tax The sales tax is indirect tax 8

BUDGET

Use of Taxes

During the Moghul period and later British period government pursued the policy of laissez-faire (leave alone) which meant that government chooses not to interfere with the economy or society

The taxes that were collected were for the purpose of defence or law and order and the welfare concept was non existent

9

BUDGETPrinciple purpose of taxation

The governments of today have many sources of income but taxes remain an important source of income

Today governmentrsquos expenditures have also increased manifold

The main expenditure purpose is1Redistribution of income (from rich to poor) or help finance welfare activities and

2 To achieve economic objectives such as control of inflation economic growth employment and reduction of balance of payment deficit 10

BUDGETPrinciples of good TaxationSince the foundation of modern economy was laid there has been many changing ideas and philosophy on the role of government

Along side the idea and principle of good taxation has also evolved

Adam Smith the economist who wrote Wealth of Nation in 1776 said that a good tax has following four principles

1 A good tax should be equal an individual should be called upon to pay tax according to hisher ability to pay tax This is called progressive taxation where the rich pay the higher percentage of taxation then poor2 A good tax should be certain people are certain about how the tax works and how much has to be paid as well as when to pay

11

BUDGET

Principles of good Taxation

3 A good tax should be convenient People should be able to pay without any inconvenience

4 A good tax should be economical the cost of collecting and administering should not exceed revenues

12

BUDGETPrinciples of good Taxation

There are several other principles of modern taxation

These area Tax should be impartial two citizen who earn equal income and have same size of family should be taxed the sameb It should not be disincentive to hard work and therefore should not penalize for hard work ie that those who work hard and earn income should not be heavily taxedc The tax should be consistent with government policy If for example the government is trying to reduce inflation it should not pursue the policy of taxation which increases demand too much in the economy

13

BUDGETTypes of Taxation

Taxes tend to fall in two categories direct and indirect taxation

Direct taxation is a tax levied directly on individualrsquos income Whereas indirect taxation is levied on consumersrsquo expenditure or outlay

Following are the types of taxation1 Direct Taxes1048712 Income Tax1048712 Wealth Tax1048712 Workers Welfare Tax1048712 Capital tax

14

BUDGET2 Indirect Taxes1048712 Custom Duty1048712 Sales tax1048712 Excise Duty

3 Non- tax Revenue1048712 Income from Property and Enterprise1048712 Profit from Railways1048712 Profit from PTCL1048712 Profit from Post office1048712 Miscellaneous Foreign travel passport fee airport tax sale proceed on oil and tax etc

The government of Pakistan levies all the above type of taxes15

BUDGET

Advantages of Direct Taxes

Direct taxes tend to be progressive

People in the higher income groups pay greater taxes than poorpeople ie income tax is graduated so that high income earner pays a larger tax

Also projected wealth tax would apply to those owing more than a certain level of wealth

It is cheap and easy to collect Consider for example PAYE system which is used to collect income tax from wages and salary earner 16

BUDGET

Impact of TaxationTaxes have variety of impact as follows

On savings and investment Higher direct taxes reduce individualsrsquo and firmsrsquo ability to save and investTo a certain extent it depends on how much of the increase in taxes is financed from savings and how much from consumption

17

BUDGET

Impact of Taxation

On prices Higher direct taxes have deflationary effect on prices by reducing demand However trade unions may ask for higher wages to compensate for higher taxes and effect of this will be inflationary

18

BUDGET

Impact of Taxation

On economy Higher taxation will other things being equal reduce demand in the economy which will have deflationary effect on the economy

19

ADMINISTRATIVE CONTROLAdministrative AccountabilityAccording to Leonard D White accountability is lsquothe sum total of constitutional statutory administrative and judicial rules and precedents and the established practices by means of which publicofficials may be held accountable for their official actionsrsquo

It refers to the formal and specific location of responsibility vested in a person

While responsibility has a personal and moral connotations and is not necessarily related to formal status and power

Accountability is also defined as the answerability of a person in organization 20

ADMINISTRATIVE CONTROL

The Meaning of Control

Accountability is a kind of management Control

Control is the process of ensuring that actual activities conform to established standards and laid done procedures

Control helps managers to monitor the effectiveness of managers

21

ADMINISTRATIVE CONTROL

Types of Accountability

There are two types of accountability mechanism that make organizations to continue to achieve goals These are discussed below1Internal Control is exercised either by superior over the subordinates within the chain of hierarchy or by other parallel agencies in the executive branch of government

It consists of directing regulating supervising advising inspecting and evaluating

It should be continuously done without being felt This mechanism of accountability has positive results also 22

ADMINISTRATIVE CONTROL

Types of Accountability

2 External control is fitted outside the administrative machinery and works within the general constitutional framework of the system

It is exercised by the external bodies such as legislature and judiciary

23

Conclusion

24

Thank you for your kind attention

Thank you for your kind attention

FACILITATORProf Dr Mohammad Majid Mahmood

25

• Slide 1
• Slide 2
• Reflections
• BUDGET
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• Slide 15
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• ADMINISTRATIVE CONTROL
• Slide 21
• Slide 22
• Slide 23
• Conclusion
• Slide 25

BUDGET

Components of Public Income

Just as households have income governments also have source of income

The source of income for the government is taxes

Taxes are of various types

Besides taxes government have non tax receipts

7

BUDGETComponents of Public Income

Following are the component of government income

Tax Receipt can be divided into direct and indirect taxes

Direct tax is levied on income

Indirect tax is not directly on income but is paid through a product or service being consumed by user

You might have purchased a bottle of Coca Cola or some other drink on which the price is written plus sales tax The sales tax is indirect tax 8

BUDGET

Use of Taxes

During the Moghul period and later British period government pursued the policy of laissez-faire (leave alone) which meant that government chooses not to interfere with the economy or society

The taxes that were collected were for the purpose of defence or law and order and the welfare concept was non existent

9

BUDGETPrinciple purpose of taxation

The governments of today have many sources of income but taxes remain an important source of income

Today governmentrsquos expenditures have also increased manifold

The main expenditure purpose is1Redistribution of income (from rich to poor) or help finance welfare activities and

2 To achieve economic objectives such as control of inflation economic growth employment and reduction of balance of payment deficit 10

BUDGETPrinciples of good TaxationSince the foundation of modern economy was laid there has been many changing ideas and philosophy on the role of government

Along side the idea and principle of good taxation has also evolved

Adam Smith the economist who wrote Wealth of Nation in 1776 said that a good tax has following four principles

1 A good tax should be equal an individual should be called upon to pay tax according to hisher ability to pay tax This is called progressive taxation where the rich pay the higher percentage of taxation then poor2 A good tax should be certain people are certain about how the tax works and how much has to be paid as well as when to pay

11

BUDGET

Principles of good Taxation

3 A good tax should be convenient People should be able to pay without any inconvenience

4 A good tax should be economical the cost of collecting and administering should not exceed revenues

12

BUDGETPrinciples of good Taxation

There are several other principles of modern taxation

These area Tax should be impartial two citizen who earn equal income and have same size of family should be taxed the sameb It should not be disincentive to hard work and therefore should not penalize for hard work ie that those who work hard and earn income should not be heavily taxedc The tax should be consistent with government policy If for example the government is trying to reduce inflation it should not pursue the policy of taxation which increases demand too much in the economy

13

BUDGETTypes of Taxation

Taxes tend to fall in two categories direct and indirect taxation

Direct taxation is a tax levied directly on individualrsquos income Whereas indirect taxation is levied on consumersrsquo expenditure or outlay

Following are the types of taxation1 Direct Taxes1048712 Income Tax1048712 Wealth Tax1048712 Workers Welfare Tax1048712 Capital tax

14

BUDGET2 Indirect Taxes1048712 Custom Duty1048712 Sales tax1048712 Excise Duty

3 Non- tax Revenue1048712 Income from Property and Enterprise1048712 Profit from Railways1048712 Profit from PTCL1048712 Profit from Post office1048712 Miscellaneous Foreign travel passport fee airport tax sale proceed on oil and tax etc

The government of Pakistan levies all the above type of taxes15

BUDGET

Advantages of Direct Taxes

Direct taxes tend to be progressive

People in the higher income groups pay greater taxes than poorpeople ie income tax is graduated so that high income earner pays a larger tax

Also projected wealth tax would apply to those owing more than a certain level of wealth

It is cheap and easy to collect Consider for example PAYE system which is used to collect income tax from wages and salary earner 16

BUDGET

Impact of TaxationTaxes have variety of impact as follows

On savings and investment Higher direct taxes reduce individualsrsquo and firmsrsquo ability to save and investTo a certain extent it depends on how much of the increase in taxes is financed from savings and how much from consumption

17

BUDGET

Impact of Taxation

On prices Higher direct taxes have deflationary effect on prices by reducing demand However trade unions may ask for higher wages to compensate for higher taxes and effect of this will be inflationary

18

BUDGET

Impact of Taxation

On economy Higher taxation will other things being equal reduce demand in the economy which will have deflationary effect on the economy

19

ADMINISTRATIVE CONTROLAdministrative AccountabilityAccording to Leonard D White accountability is lsquothe sum total of constitutional statutory administrative and judicial rules and precedents and the established practices by means of which publicofficials may be held accountable for their official actionsrsquo

It refers to the formal and specific location of responsibility vested in a person

While responsibility has a personal and moral connotations and is not necessarily related to formal status and power

Accountability is also defined as the answerability of a person in organization 20

ADMINISTRATIVE CONTROL

The Meaning of Control

Accountability is a kind of management Control

Control is the process of ensuring that actual activities conform to established standards and laid done procedures

Control helps managers to monitor the effectiveness of managers

21

ADMINISTRATIVE CONTROL

Types of Accountability

There are two types of accountability mechanism that make organizations to continue to achieve goals These are discussed below1Internal Control is exercised either by superior over the subordinates within the chain of hierarchy or by other parallel agencies in the executive branch of government

It consists of directing regulating supervising advising inspecting and evaluating

It should be continuously done without being felt This mechanism of accountability has positive results also 22

ADMINISTRATIVE CONTROL

Types of Accountability

2 External control is fitted outside the administrative machinery and works within the general constitutional framework of the system

It is exercised by the external bodies such as legislature and judiciary

23

Conclusion

24

Thank you for your kind attention

Thank you for your kind attention

FACILITATORProf Dr Mohammad Majid Mahmood

25

• Slide 1
• Slide 2
• Reflections
• BUDGET
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• Slide 15
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• ADMINISTRATIVE CONTROL
• Slide 21
• Slide 22
• Slide 23
• Conclusion
• Slide 25

BUDGETComponents of Public Income

Following are the component of government income

Tax Receipt can be divided into direct and indirect taxes

Direct tax is levied on income

Indirect tax is not directly on income but is paid through a product or service being consumed by user

You might have purchased a bottle of Coca Cola or some other drink on which the price is written plus sales tax The sales tax is indirect tax 8

BUDGET

Use of Taxes

During the Moghul period and later British period government pursued the policy of laissez-faire (leave alone) which meant that government chooses not to interfere with the economy or society

The taxes that were collected were for the purpose of defence or law and order and the welfare concept was non existent

9

BUDGETPrinciple purpose of taxation

The governments of today have many sources of income but taxes remain an important source of income

Today governmentrsquos expenditures have also increased manifold

The main expenditure purpose is1Redistribution of income (from rich to poor) or help finance welfare activities and

2 To achieve economic objectives such as control of inflation economic growth employment and reduction of balance of payment deficit 10

BUDGETPrinciples of good TaxationSince the foundation of modern economy was laid there has been many changing ideas and philosophy on the role of government

Along side the idea and principle of good taxation has also evolved

Adam Smith the economist who wrote Wealth of Nation in 1776 said that a good tax has following four principles

1 A good tax should be equal an individual should be called upon to pay tax according to hisher ability to pay tax This is called progressive taxation where the rich pay the higher percentage of taxation then poor2 A good tax should be certain people are certain about how the tax works and how much has to be paid as well as when to pay

11

BUDGET

Principles of good Taxation

3 A good tax should be convenient People should be able to pay without any inconvenience

4 A good tax should be economical the cost of collecting and administering should not exceed revenues

12

BUDGETPrinciples of good Taxation

There are several other principles of modern taxation

These area Tax should be impartial two citizen who earn equal income and have same size of family should be taxed the sameb It should not be disincentive to hard work and therefore should not penalize for hard work ie that those who work hard and earn income should not be heavily taxedc The tax should be consistent with government policy If for example the government is trying to reduce inflation it should not pursue the policy of taxation which increases demand too much in the economy

13

BUDGETTypes of Taxation

Taxes tend to fall in two categories direct and indirect taxation

Direct taxation is a tax levied directly on individualrsquos income Whereas indirect taxation is levied on consumersrsquo expenditure or outlay

Following are the types of taxation1 Direct Taxes1048712 Income Tax1048712 Wealth Tax1048712 Workers Welfare Tax1048712 Capital tax

14

BUDGET2 Indirect Taxes1048712 Custom Duty1048712 Sales tax1048712 Excise Duty

3 Non- tax Revenue1048712 Income from Property and Enterprise1048712 Profit from Railways1048712 Profit from PTCL1048712 Profit from Post office1048712 Miscellaneous Foreign travel passport fee airport tax sale proceed on oil and tax etc

The government of Pakistan levies all the above type of taxes15

BUDGET

Advantages of Direct Taxes

Direct taxes tend to be progressive

People in the higher income groups pay greater taxes than poorpeople ie income tax is graduated so that high income earner pays a larger tax

Also projected wealth tax would apply to those owing more than a certain level of wealth

It is cheap and easy to collect Consider for example PAYE system which is used to collect income tax from wages and salary earner 16

BUDGET

Impact of TaxationTaxes have variety of impact as follows

On savings and investment Higher direct taxes reduce individualsrsquo and firmsrsquo ability to save and investTo a certain extent it depends on how much of the increase in taxes is financed from savings and how much from consumption

17

BUDGET

Impact of Taxation

On prices Higher direct taxes have deflationary effect on prices by reducing demand However trade unions may ask for higher wages to compensate for higher taxes and effect of this will be inflationary

18

BUDGET

Impact of Taxation

On economy Higher taxation will other things being equal reduce demand in the economy which will have deflationary effect on the economy

19

ADMINISTRATIVE CONTROLAdministrative AccountabilityAccording to Leonard D White accountability is lsquothe sum total of constitutional statutory administrative and judicial rules and precedents and the established practices by means of which publicofficials may be held accountable for their official actionsrsquo

It refers to the formal and specific location of responsibility vested in a person

While responsibility has a personal and moral connotations and is not necessarily related to formal status and power

Accountability is also defined as the answerability of a person in organization 20

ADMINISTRATIVE CONTROL

The Meaning of Control

Accountability is a kind of management Control

Control is the process of ensuring that actual activities conform to established standards and laid done procedures

Control helps managers to monitor the effectiveness of managers

21

ADMINISTRATIVE CONTROL

Types of Accountability

There are two types of accountability mechanism that make organizations to continue to achieve goals These are discussed below1Internal Control is exercised either by superior over the subordinates within the chain of hierarchy or by other parallel agencies in the executive branch of government

It consists of directing regulating supervising advising inspecting and evaluating

It should be continuously done without being felt This mechanism of accountability has positive results also 22

ADMINISTRATIVE CONTROL

Types of Accountability

2 External control is fitted outside the administrative machinery and works within the general constitutional framework of the system

It is exercised by the external bodies such as legislature and judiciary

23

Conclusion

24

Thank you for your kind attention

Thank you for your kind attention

FACILITATORProf Dr Mohammad Majid Mahmood

25

• Slide 1
• Slide 2
• Reflections
• BUDGET
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• Slide 15
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• ADMINISTRATIVE CONTROL
• Slide 21
• Slide 22
• Slide 23
• Conclusion
• Slide 25

BUDGET

Use of Taxes

During the Moghul period and later British period government pursued the policy of laissez-faire (leave alone) which meant that government chooses not to interfere with the economy or society

The taxes that were collected were for the purpose of defence or law and order and the welfare concept was non existent

9

BUDGETPrinciple purpose of taxation

The governments of today have many sources of income but taxes remain an important source of income

Today governmentrsquos expenditures have also increased manifold

The main expenditure purpose is1Redistribution of income (from rich to poor) or help finance welfare activities and

2 To achieve economic objectives such as control of inflation economic growth employment and reduction of balance of payment deficit 10

BUDGETPrinciples of good TaxationSince the foundation of modern economy was laid there has been many changing ideas and philosophy on the role of government

Along side the idea and principle of good taxation has also evolved

Adam Smith the economist who wrote Wealth of Nation in 1776 said that a good tax has following four principles

1 A good tax should be equal an individual should be called upon to pay tax according to hisher ability to pay tax This is called progressive taxation where the rich pay the higher percentage of taxation then poor2 A good tax should be certain people are certain about how the tax works and how much has to be paid as well as when to pay

11

BUDGET

Principles of good Taxation

3 A good tax should be convenient People should be able to pay without any inconvenience

4 A good tax should be economical the cost of collecting and administering should not exceed revenues

12

BUDGETPrinciples of good Taxation

There are several other principles of modern taxation

These area Tax should be impartial two citizen who earn equal income and have same size of family should be taxed the sameb It should not be disincentive to hard work and therefore should not penalize for hard work ie that those who work hard and earn income should not be heavily taxedc The tax should be consistent with government policy If for example the government is trying to reduce inflation it should not pursue the policy of taxation which increases demand too much in the economy

13

BUDGETTypes of Taxation

Taxes tend to fall in two categories direct and indirect taxation

Direct taxation is a tax levied directly on individualrsquos income Whereas indirect taxation is levied on consumersrsquo expenditure or outlay

Following are the types of taxation1 Direct Taxes1048712 Income Tax1048712 Wealth Tax1048712 Workers Welfare Tax1048712 Capital tax

14

BUDGET2 Indirect Taxes1048712 Custom Duty1048712 Sales tax1048712 Excise Duty

3 Non- tax Revenue1048712 Income from Property and Enterprise1048712 Profit from Railways1048712 Profit from PTCL1048712 Profit from Post office1048712 Miscellaneous Foreign travel passport fee airport tax sale proceed on oil and tax etc

The government of Pakistan levies all the above type of taxes15

BUDGET

Advantages of Direct Taxes

Direct taxes tend to be progressive

People in the higher income groups pay greater taxes than poorpeople ie income tax is graduated so that high income earner pays a larger tax

Also projected wealth tax would apply to those owing more than a certain level of wealth

It is cheap and easy to collect Consider for example PAYE system which is used to collect income tax from wages and salary earner 16

BUDGET

Impact of TaxationTaxes have variety of impact as follows

On savings and investment Higher direct taxes reduce individualsrsquo and firmsrsquo ability to save and investTo a certain extent it depends on how much of the increase in taxes is financed from savings and how much from consumption

17

BUDGET

Impact of Taxation

On prices Higher direct taxes have deflationary effect on prices by reducing demand However trade unions may ask for higher wages to compensate for higher taxes and effect of this will be inflationary

18

BUDGET

Impact of Taxation

On economy Higher taxation will other things being equal reduce demand in the economy which will have deflationary effect on the economy

19

ADMINISTRATIVE CONTROLAdministrative AccountabilityAccording to Leonard D White accountability is lsquothe sum total of constitutional statutory administrative and judicial rules and precedents and the established practices by means of which publicofficials may be held accountable for their official actionsrsquo

It refers to the formal and specific location of responsibility vested in a person

While responsibility has a personal and moral connotations and is not necessarily related to formal status and power

Accountability is also defined as the answerability of a person in organization 20

ADMINISTRATIVE CONTROL

The Meaning of Control

Accountability is a kind of management Control

Control is the process of ensuring that actual activities conform to established standards and laid done procedures

Control helps managers to monitor the effectiveness of managers

21

ADMINISTRATIVE CONTROL

Types of Accountability

There are two types of accountability mechanism that make organizations to continue to achieve goals These are discussed below1Internal Control is exercised either by superior over the subordinates within the chain of hierarchy or by other parallel agencies in the executive branch of government

It consists of directing regulating supervising advising inspecting and evaluating

It should be continuously done without being felt This mechanism of accountability has positive results also 22

ADMINISTRATIVE CONTROL

Types of Accountability

2 External control is fitted outside the administrative machinery and works within the general constitutional framework of the system

It is exercised by the external bodies such as legislature and judiciary

23

Conclusion

24

Thank you for your kind attention

Thank you for your kind attention

FACILITATORProf Dr Mohammad Majid Mahmood

25

• Slide 1
• Slide 2
• Reflections
• BUDGET
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• Slide 15
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• ADMINISTRATIVE CONTROL
• Slide 21
• Slide 22
• Slide 23
• Conclusion
• Slide 25

BUDGETPrinciple purpose of taxation

The governments of today have many sources of income but taxes remain an important source of income

Today governmentrsquos expenditures have also increased manifold

The main expenditure purpose is1Redistribution of income (from rich to poor) or help finance welfare activities and

2 To achieve economic objectives such as control of inflation economic growth employment and reduction of balance of payment deficit 10

BUDGETPrinciples of good TaxationSince the foundation of modern economy was laid there has been many changing ideas and philosophy on the role of government

Along side the idea and principle of good taxation has also evolved

Adam Smith the economist who wrote Wealth of Nation in 1776 said that a good tax has following four principles

1 A good tax should be equal an individual should be called upon to pay tax according to hisher ability to pay tax This is called progressive taxation where the rich pay the higher percentage of taxation then poor2 A good tax should be certain people are certain about how the tax works and how much has to be paid as well as when to pay

11

BUDGET

Principles of good Taxation

3 A good tax should be convenient People should be able to pay without any inconvenience

4 A good tax should be economical the cost of collecting and administering should not exceed revenues

12

BUDGETPrinciples of good Taxation

There are several other principles of modern taxation

These area Tax should be impartial two citizen who earn equal income and have same size of family should be taxed the sameb It should not be disincentive to hard work and therefore should not penalize for hard work ie that those who work hard and earn income should not be heavily taxedc The tax should be consistent with government policy If for example the government is trying to reduce inflation it should not pursue the policy of taxation which increases demand too much in the economy

13

BUDGETTypes of Taxation

Taxes tend to fall in two categories direct and indirect taxation

Direct taxation is a tax levied directly on individualrsquos income Whereas indirect taxation is levied on consumersrsquo expenditure or outlay

Following are the types of taxation1 Direct Taxes1048712 Income Tax1048712 Wealth Tax1048712 Workers Welfare Tax1048712 Capital tax

14

BUDGET2 Indirect Taxes1048712 Custom Duty1048712 Sales tax1048712 Excise Duty

3 Non- tax Revenue1048712 Income from Property and Enterprise1048712 Profit from Railways1048712 Profit from PTCL1048712 Profit from Post office1048712 Miscellaneous Foreign travel passport fee airport tax sale proceed on oil and tax etc

The government of Pakistan levies all the above type of taxes15

BUDGET

Advantages of Direct Taxes

Direct taxes tend to be progressive

People in the higher income groups pay greater taxes than poorpeople ie income tax is graduated so that high income earner pays a larger tax

Also projected wealth tax would apply to those owing more than a certain level of wealth

It is cheap and easy to collect Consider for example PAYE system which is used to collect income tax from wages and salary earner 16

BUDGET

Impact of TaxationTaxes have variety of impact as follows

On savings and investment Higher direct taxes reduce individualsrsquo and firmsrsquo ability to save and investTo a certain extent it depends on how much of the increase in taxes is financed from savings and how much from consumption

17

BUDGET

Impact of Taxation

On prices Higher direct taxes have deflationary effect on prices by reducing demand However trade unions may ask for higher wages to compensate for higher taxes and effect of this will be inflationary

18

BUDGET

Impact of Taxation

On economy Higher taxation will other things being equal reduce demand in the economy which will have deflationary effect on the economy

19

ADMINISTRATIVE CONTROLAdministrative AccountabilityAccording to Leonard D White accountability is lsquothe sum total of constitutional statutory administrative and judicial rules and precedents and the established practices by means of which publicofficials may be held accountable for their official actionsrsquo

It refers to the formal and specific location of responsibility vested in a person

While responsibility has a personal and moral connotations and is not necessarily related to formal status and power

Accountability is also defined as the answerability of a person in organization 20

ADMINISTRATIVE CONTROL

The Meaning of Control

Accountability is a kind of management Control

Control is the process of ensuring that actual activities conform to established standards and laid done procedures

Control helps managers to monitor the effectiveness of managers

21

ADMINISTRATIVE CONTROL

Types of Accountability

There are two types of accountability mechanism that make organizations to continue to achieve goals These are discussed below1Internal Control is exercised either by superior over the subordinates within the chain of hierarchy or by other parallel agencies in the executive branch of government

It consists of directing regulating supervising advising inspecting and evaluating

It should be continuously done without being felt This mechanism of accountability has positive results also 22

ADMINISTRATIVE CONTROL

Types of Accountability

2 External control is fitted outside the administrative machinery and works within the general constitutional framework of the system

It is exercised by the external bodies such as legislature and judiciary

23

Conclusion

24

Thank you for your kind attention

Thank you for your kind attention

FACILITATORProf Dr Mohammad Majid Mahmood

25

• Slide 1
• Slide 2
• Reflections
• BUDGET
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• Slide 15
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• ADMINISTRATIVE CONTROL
• Slide 21
• Slide 22
• Slide 23
• Conclusion
• Slide 25

BUDGETPrinciples of good TaxationSince the foundation of modern economy was laid there has been many changing ideas and philosophy on the role of government

Along side the idea and principle of good taxation has also evolved

Adam Smith the economist who wrote Wealth of Nation in 1776 said that a good tax has following four principles

1 A good tax should be equal an individual should be called upon to pay tax according to hisher ability to pay tax This is called progressive taxation where the rich pay the higher percentage of taxation then poor2 A good tax should be certain people are certain about how the tax works and how much has to be paid as well as when to pay

11

BUDGET

Principles of good Taxation

3 A good tax should be convenient People should be able to pay without any inconvenience

4 A good tax should be economical the cost of collecting and administering should not exceed revenues

12

BUDGETPrinciples of good Taxation

There are several other principles of modern taxation

These area Tax should be impartial two citizen who earn equal income and have same size of family should be taxed the sameb It should not be disincentive to hard work and therefore should not penalize for hard work ie that those who work hard and earn income should not be heavily taxedc The tax should be consistent with government policy If for example the government is trying to reduce inflation it should not pursue the policy of taxation which increases demand too much in the economy

13

BUDGETTypes of Taxation

Taxes tend to fall in two categories direct and indirect taxation

Direct taxation is a tax levied directly on individualrsquos income Whereas indirect taxation is levied on consumersrsquo expenditure or outlay

Following are the types of taxation1 Direct Taxes1048712 Income Tax1048712 Wealth Tax1048712 Workers Welfare Tax1048712 Capital tax

14

BUDGET2 Indirect Taxes1048712 Custom Duty1048712 Sales tax1048712 Excise Duty

3 Non- tax Revenue1048712 Income from Property and Enterprise1048712 Profit from Railways1048712 Profit from PTCL1048712 Profit from Post office1048712 Miscellaneous Foreign travel passport fee airport tax sale proceed on oil and tax etc

The government of Pakistan levies all the above type of taxes15

BUDGET

Advantages of Direct Taxes

Direct taxes tend to be progressive

People in the higher income groups pay greater taxes than poorpeople ie income tax is graduated so that high income earner pays a larger tax

Also projected wealth tax would apply to those owing more than a certain level of wealth

It is cheap and easy to collect Consider for example PAYE system which is used to collect income tax from wages and salary earner 16

BUDGET

Impact of TaxationTaxes have variety of impact as follows

On savings and investment Higher direct taxes reduce individualsrsquo and firmsrsquo ability to save and investTo a certain extent it depends on how much of the increase in taxes is financed from savings and how much from consumption

17

BUDGET

Impact of Taxation

On prices Higher direct taxes have deflationary effect on prices by reducing demand However trade unions may ask for higher wages to compensate for higher taxes and effect of this will be inflationary

18

BUDGET

Impact of Taxation

On economy Higher taxation will other things being equal reduce demand in the economy which will have deflationary effect on the economy

19

ADMINISTRATIVE CONTROLAdministrative AccountabilityAccording to Leonard D White accountability is lsquothe sum total of constitutional statutory administrative and judicial rules and precedents and the established practices by means of which publicofficials may be held accountable for their official actionsrsquo

It refers to the formal and specific location of responsibility vested in a person

While responsibility has a personal and moral connotations and is not necessarily related to formal status and power

Accountability is also defined as the answerability of a person in organization 20

ADMINISTRATIVE CONTROL

The Meaning of Control

Accountability is a kind of management Control

Control is the process of ensuring that actual activities conform to established standards and laid done procedures

Control helps managers to monitor the effectiveness of managers

21

ADMINISTRATIVE CONTROL

Types of Accountability

There are two types of accountability mechanism that make organizations to continue to achieve goals These are discussed below1Internal Control is exercised either by superior over the subordinates within the chain of hierarchy or by other parallel agencies in the executive branch of government

It consists of directing regulating supervising advising inspecting and evaluating

It should be continuously done without being felt This mechanism of accountability has positive results also 22

ADMINISTRATIVE CONTROL

Types of Accountability

2 External control is fitted outside the administrative machinery and works within the general constitutional framework of the system

It is exercised by the external bodies such as legislature and judiciary

23

Conclusion

24

Thank you for your kind attention

Thank you for your kind attention

FACILITATORProf Dr Mohammad Majid Mahmood

25

• Slide 1
• Slide 2
• Reflections
• BUDGET
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• Slide 15
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• ADMINISTRATIVE CONTROL
• Slide 21
• Slide 22
• Slide 23
• Conclusion
• Slide 25

BUDGET

Principles of good Taxation

3 A good tax should be convenient People should be able to pay without any inconvenience

4 A good tax should be economical the cost of collecting and administering should not exceed revenues

12

BUDGETPrinciples of good Taxation

There are several other principles of modern taxation

These area Tax should be impartial two citizen who earn equal income and have same size of family should be taxed the sameb It should not be disincentive to hard work and therefore should not penalize for hard work ie that those who work hard and earn income should not be heavily taxedc The tax should be consistent with government policy If for example the government is trying to reduce inflation it should not pursue the policy of taxation which increases demand too much in the economy

13

BUDGETTypes of Taxation

Taxes tend to fall in two categories direct and indirect taxation

Direct taxation is a tax levied directly on individualrsquos income Whereas indirect taxation is levied on consumersrsquo expenditure or outlay

Following are the types of taxation1 Direct Taxes1048712 Income Tax1048712 Wealth Tax1048712 Workers Welfare Tax1048712 Capital tax

14

BUDGET2 Indirect Taxes1048712 Custom Duty1048712 Sales tax1048712 Excise Duty

3 Non- tax Revenue1048712 Income from Property and Enterprise1048712 Profit from Railways1048712 Profit from PTCL1048712 Profit from Post office1048712 Miscellaneous Foreign travel passport fee airport tax sale proceed on oil and tax etc

The government of Pakistan levies all the above type of taxes15

BUDGET

Advantages of Direct Taxes

Direct taxes tend to be progressive

People in the higher income groups pay greater taxes than poorpeople ie income tax is graduated so that high income earner pays a larger tax

Also projected wealth tax would apply to those owing more than a certain level of wealth

It is cheap and easy to collect Consider for example PAYE system which is used to collect income tax from wages and salary earner 16

BUDGET

Impact of TaxationTaxes have variety of impact as follows

On savings and investment Higher direct taxes reduce individualsrsquo and firmsrsquo ability to save and investTo a certain extent it depends on how much of the increase in taxes is financed from savings and how much from consumption

17

BUDGET

Impact of Taxation

On prices Higher direct taxes have deflationary effect on prices by reducing demand However trade unions may ask for higher wages to compensate for higher taxes and effect of this will be inflationary

18

BUDGET

Impact of Taxation

On economy Higher taxation will other things being equal reduce demand in the economy which will have deflationary effect on the economy

19

ADMINISTRATIVE CONTROLAdministrative AccountabilityAccording to Leonard D White accountability is lsquothe sum total of constitutional statutory administrative and judicial rules and precedents and the established practices by means of which publicofficials may be held accountable for their official actionsrsquo

It refers to the formal and specific location of responsibility vested in a person

While responsibility has a personal and moral connotations and is not necessarily related to formal status and power

Accountability is also defined as the answerability of a person in organization 20

ADMINISTRATIVE CONTROL

The Meaning of Control

Accountability is a kind of management Control

Control is the process of ensuring that actual activities conform to established standards and laid done procedures

Control helps managers to monitor the effectiveness of managers

21

ADMINISTRATIVE CONTROL

Types of Accountability

There are two types of accountability mechanism that make organizations to continue to achieve goals These are discussed below1Internal Control is exercised either by superior over the subordinates within the chain of hierarchy or by other parallel agencies in the executive branch of government

It consists of directing regulating supervising advising inspecting and evaluating

It should be continuously done without being felt This mechanism of accountability has positive results also 22

ADMINISTRATIVE CONTROL

Types of Accountability

2 External control is fitted outside the administrative machinery and works within the general constitutional framework of the system

It is exercised by the external bodies such as legislature and judiciary

23

Conclusion

24

Thank you for your kind attention

Thank you for your kind attention

FACILITATORProf Dr Mohammad Majid Mahmood

25

• Slide 1
• Slide 2
• Reflections
• BUDGET
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• Slide 15
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• ADMINISTRATIVE CONTROL
• Slide 21
• Slide 22
• Slide 23
• Conclusion
• Slide 25

BUDGETPrinciples of good Taxation

There are several other principles of modern taxation

These area Tax should be impartial two citizen who earn equal income and have same size of family should be taxed the sameb It should not be disincentive to hard work and therefore should not penalize for hard work ie that those who work hard and earn income should not be heavily taxedc The tax should be consistent with government policy If for example the government is trying to reduce inflation it should not pursue the policy of taxation which increases demand too much in the economy

13

BUDGETTypes of Taxation

Taxes tend to fall in two categories direct and indirect taxation

Direct taxation is a tax levied directly on individualrsquos income Whereas indirect taxation is levied on consumersrsquo expenditure or outlay

Following are the types of taxation1 Direct Taxes1048712 Income Tax1048712 Wealth Tax1048712 Workers Welfare Tax1048712 Capital tax

14

BUDGET2 Indirect Taxes1048712 Custom Duty1048712 Sales tax1048712 Excise Duty

3 Non- tax Revenue1048712 Income from Property and Enterprise1048712 Profit from Railways1048712 Profit from PTCL1048712 Profit from Post office1048712 Miscellaneous Foreign travel passport fee airport tax sale proceed on oil and tax etc

The government of Pakistan levies all the above type of taxes15

BUDGET

Advantages of Direct Taxes

Direct taxes tend to be progressive

People in the higher income groups pay greater taxes than poorpeople ie income tax is graduated so that high income earner pays a larger tax

Also projected wealth tax would apply to those owing more than a certain level of wealth

It is cheap and easy to collect Consider for example PAYE system which is used to collect income tax from wages and salary earner 16

BUDGET

Impact of TaxationTaxes have variety of impact as follows

On savings and investment Higher direct taxes reduce individualsrsquo and firmsrsquo ability to save and investTo a certain extent it depends on how much of the increase in taxes is financed from savings and how much from consumption

17

BUDGET

Impact of Taxation

On prices Higher direct taxes have deflationary effect on prices by reducing demand However trade unions may ask for higher wages to compensate for higher taxes and effect of this will be inflationary

18

BUDGET

Impact of Taxation

On economy Higher taxation will other things being equal reduce demand in the economy which will have deflationary effect on the economy

19

ADMINISTRATIVE CONTROLAdministrative AccountabilityAccording to Leonard D White accountability is lsquothe sum total of constitutional statutory administrative and judicial rules and precedents and the established practices by means of which publicofficials may be held accountable for their official actionsrsquo

It refers to the formal and specific location of responsibility vested in a person

While responsibility has a personal and moral connotations and is not necessarily related to formal status and power

Accountability is also defined as the answerability of a person in organization 20

ADMINISTRATIVE CONTROL

The Meaning of Control

Accountability is a kind of management Control

Control is the process of ensuring that actual activities conform to established standards and laid done procedures

Control helps managers to monitor the effectiveness of managers

21

ADMINISTRATIVE CONTROL

Types of Accountability

There are two types of accountability mechanism that make organizations to continue to achieve goals These are discussed below1Internal Control is exercised either by superior over the subordinates within the chain of hierarchy or by other parallel agencies in the executive branch of government

It consists of directing regulating supervising advising inspecting and evaluating

It should be continuously done without being felt This mechanism of accountability has positive results also 22

ADMINISTRATIVE CONTROL

Types of Accountability

2 External control is fitted outside the administrative machinery and works within the general constitutional framework of the system

It is exercised by the external bodies such as legislature and judiciary

23

Conclusion

24

Thank you for your kind attention

Thank you for your kind attention

FACILITATORProf Dr Mohammad Majid Mahmood

25

• Slide 1
• Slide 2
• Reflections
• BUDGET
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• Slide 15
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• ADMINISTRATIVE CONTROL
• Slide 21
• Slide 22
• Slide 23
• Conclusion
• Slide 25

BUDGETTypes of Taxation

Taxes tend to fall in two categories direct and indirect taxation

Direct taxation is a tax levied directly on individualrsquos income Whereas indirect taxation is levied on consumersrsquo expenditure or outlay

Following are the types of taxation1 Direct Taxes1048712 Income Tax1048712 Wealth Tax1048712 Workers Welfare Tax1048712 Capital tax

14

BUDGET2 Indirect Taxes1048712 Custom Duty1048712 Sales tax1048712 Excise Duty

3 Non- tax Revenue1048712 Income from Property and Enterprise1048712 Profit from Railways1048712 Profit from PTCL1048712 Profit from Post office1048712 Miscellaneous Foreign travel passport fee airport tax sale proceed on oil and tax etc

The government of Pakistan levies all the above type of taxes15

BUDGET

Advantages of Direct Taxes

Direct taxes tend to be progressive

People in the higher income groups pay greater taxes than poorpeople ie income tax is graduated so that high income earner pays a larger tax

Also projected wealth tax would apply to those owing more than a certain level of wealth

It is cheap and easy to collect Consider for example PAYE system which is used to collect income tax from wages and salary earner 16

BUDGET

Impact of TaxationTaxes have variety of impact as follows

On savings and investment Higher direct taxes reduce individualsrsquo and firmsrsquo ability to save and investTo a certain extent it depends on how much of the increase in taxes is financed from savings and how much from consumption

17

BUDGET

Impact of Taxation

On prices Higher direct taxes have deflationary effect on prices by reducing demand However trade unions may ask for higher wages to compensate for higher taxes and effect of this will be inflationary

18

BUDGET

Impact of Taxation

On economy Higher taxation will other things being equal reduce demand in the economy which will have deflationary effect on the economy

19

ADMINISTRATIVE CONTROLAdministrative AccountabilityAccording to Leonard D White accountability is lsquothe sum total of constitutional statutory administrative and judicial rules and precedents and the established practices by means of which publicofficials may be held accountable for their official actionsrsquo

It refers to the formal and specific location of responsibility vested in a person

While responsibility has a personal and moral connotations and is not necessarily related to formal status and power

Accountability is also defined as the answerability of a person in organization 20

ADMINISTRATIVE CONTROL

The Meaning of Control

Accountability is a kind of management Control

Control is the process of ensuring that actual activities conform to established standards and laid done procedures

Control helps managers to monitor the effectiveness of managers

21

ADMINISTRATIVE CONTROL

Types of Accountability

There are two types of accountability mechanism that make organizations to continue to achieve goals These are discussed below1Internal Control is exercised either by superior over the subordinates within the chain of hierarchy or by other parallel agencies in the executive branch of government

It consists of directing regulating supervising advising inspecting and evaluating

It should be continuously done without being felt This mechanism of accountability has positive results also 22

ADMINISTRATIVE CONTROL

Types of Accountability

2 External control is fitted outside the administrative machinery and works within the general constitutional framework of the system

It is exercised by the external bodies such as legislature and judiciary

23

Conclusion

24

Thank you for your kind attention

Thank you for your kind attention

FACILITATORProf Dr Mohammad Majid Mahmood

25

• Slide 1
• Slide 2
• Reflections
• BUDGET
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• Slide 15
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• ADMINISTRATIVE CONTROL
• Slide 21
• Slide 22
• Slide 23
• Conclusion
• Slide 25

BUDGET2 Indirect Taxes1048712 Custom Duty1048712 Sales tax1048712 Excise Duty

3 Non- tax Revenue1048712 Income from Property and Enterprise1048712 Profit from Railways1048712 Profit from PTCL1048712 Profit from Post office1048712 Miscellaneous Foreign travel passport fee airport tax sale proceed on oil and tax etc

The government of Pakistan levies all the above type of taxes15

BUDGET

Advantages of Direct Taxes

Direct taxes tend to be progressive

People in the higher income groups pay greater taxes than poorpeople ie income tax is graduated so that high income earner pays a larger tax

Also projected wealth tax would apply to those owing more than a certain level of wealth

It is cheap and easy to collect Consider for example PAYE system which is used to collect income tax from wages and salary earner 16

BUDGET

Impact of TaxationTaxes have variety of impact as follows

On savings and investment Higher direct taxes reduce individualsrsquo and firmsrsquo ability to save and investTo a certain extent it depends on how much of the increase in taxes is financed from savings and how much from consumption

17

BUDGET

Impact of Taxation

On prices Higher direct taxes have deflationary effect on prices by reducing demand However trade unions may ask for higher wages to compensate for higher taxes and effect of this will be inflationary

18

BUDGET

Impact of Taxation

On economy Higher taxation will other things being equal reduce demand in the economy which will have deflationary effect on the economy

19

ADMINISTRATIVE CONTROLAdministrative AccountabilityAccording to Leonard D White accountability is lsquothe sum total of constitutional statutory administrative and judicial rules and precedents and the established practices by means of which publicofficials may be held accountable for their official actionsrsquo

It refers to the formal and specific location of responsibility vested in a person

While responsibility has a personal and moral connotations and is not necessarily related to formal status and power

Accountability is also defined as the answerability of a person in organization 20

ADMINISTRATIVE CONTROL

The Meaning of Control

Accountability is a kind of management Control

Control is the process of ensuring that actual activities conform to established standards and laid done procedures

Control helps managers to monitor the effectiveness of managers

21

ADMINISTRATIVE CONTROL

Types of Accountability

There are two types of accountability mechanism that make organizations to continue to achieve goals These are discussed below1Internal Control is exercised either by superior over the subordinates within the chain of hierarchy or by other parallel agencies in the executive branch of government

It consists of directing regulating supervising advising inspecting and evaluating

It should be continuously done without being felt This mechanism of accountability has positive results also 22

ADMINISTRATIVE CONTROL

Types of Accountability

2 External control is fitted outside the administrative machinery and works within the general constitutional framework of the system

It is exercised by the external bodies such as legislature and judiciary

23

Conclusion

24

Thank you for your kind attention

Thank you for your kind attention

FACILITATORProf Dr Mohammad Majid Mahmood

25

• Slide 1
• Slide 2
• Reflections
• BUDGET
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• Slide 15
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• ADMINISTRATIVE CONTROL
• Slide 21
• Slide 22
• Slide 23
• Conclusion
• Slide 25

BUDGET

Advantages of Direct Taxes

Direct taxes tend to be progressive

People in the higher income groups pay greater taxes than poorpeople ie income tax is graduated so that high income earner pays a larger tax

Also projected wealth tax would apply to those owing more than a certain level of wealth

It is cheap and easy to collect Consider for example PAYE system which is used to collect income tax from wages and salary earner 16

BUDGET

Impact of TaxationTaxes have variety of impact as follows

On savings and investment Higher direct taxes reduce individualsrsquo and firmsrsquo ability to save and investTo a certain extent it depends on how much of the increase in taxes is financed from savings and how much from consumption

17

BUDGET

Impact of Taxation

On prices Higher direct taxes have deflationary effect on prices by reducing demand However trade unions may ask for higher wages to compensate for higher taxes and effect of this will be inflationary

18

BUDGET

Impact of Taxation

On economy Higher taxation will other things being equal reduce demand in the economy which will have deflationary effect on the economy

19

ADMINISTRATIVE CONTROLAdministrative AccountabilityAccording to Leonard D White accountability is lsquothe sum total of constitutional statutory administrative and judicial rules and precedents and the established practices by means of which publicofficials may be held accountable for their official actionsrsquo

It refers to the formal and specific location of responsibility vested in a person

While responsibility has a personal and moral connotations and is not necessarily related to formal status and power

Accountability is also defined as the answerability of a person in organization 20

ADMINISTRATIVE CONTROL

The Meaning of Control

Accountability is a kind of management Control

Control is the process of ensuring that actual activities conform to established standards and laid done procedures

Control helps managers to monitor the effectiveness of managers

21

ADMINISTRATIVE CONTROL

Types of Accountability

There are two types of accountability mechanism that make organizations to continue to achieve goals These are discussed below1Internal Control is exercised either by superior over the subordinates within the chain of hierarchy or by other parallel agencies in the executive branch of government

It consists of directing regulating supervising advising inspecting and evaluating

It should be continuously done without being felt This mechanism of accountability has positive results also 22

ADMINISTRATIVE CONTROL

Types of Accountability

2 External control is fitted outside the administrative machinery and works within the general constitutional framework of the system

It is exercised by the external bodies such as legislature and judiciary

23

Conclusion

24

Thank you for your kind attention

Thank you for your kind attention

FACILITATORProf Dr Mohammad Majid Mahmood

25

• Slide 1
• Slide 2
• Reflections
• BUDGET
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• Slide 15
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• ADMINISTRATIVE CONTROL
• Slide 21
• Slide 22
• Slide 23
• Conclusion
• Slide 25

BUDGET

Impact of TaxationTaxes have variety of impact as follows

On savings and investment Higher direct taxes reduce individualsrsquo and firmsrsquo ability to save and investTo a certain extent it depends on how much of the increase in taxes is financed from savings and how much from consumption

17

BUDGET

Impact of Taxation

On prices Higher direct taxes have deflationary effect on prices by reducing demand However trade unions may ask for higher wages to compensate for higher taxes and effect of this will be inflationary

18

BUDGET

Impact of Taxation

On economy Higher taxation will other things being equal reduce demand in the economy which will have deflationary effect on the economy

19

ADMINISTRATIVE CONTROLAdministrative AccountabilityAccording to Leonard D White accountability is lsquothe sum total of constitutional statutory administrative and judicial rules and precedents and the established practices by means of which publicofficials may be held accountable for their official actionsrsquo

It refers to the formal and specific location of responsibility vested in a person

While responsibility has a personal and moral connotations and is not necessarily related to formal status and power

Accountability is also defined as the answerability of a person in organization 20

ADMINISTRATIVE CONTROL

The Meaning of Control

Accountability is a kind of management Control

Control is the process of ensuring that actual activities conform to established standards and laid done procedures

Control helps managers to monitor the effectiveness of managers

21

ADMINISTRATIVE CONTROL

Types of Accountability

There are two types of accountability mechanism that make organizations to continue to achieve goals These are discussed below1Internal Control is exercised either by superior over the subordinates within the chain of hierarchy or by other parallel agencies in the executive branch of government

It consists of directing regulating supervising advising inspecting and evaluating

It should be continuously done without being felt This mechanism of accountability has positive results also 22

ADMINISTRATIVE CONTROL

Types of Accountability

2 External control is fitted outside the administrative machinery and works within the general constitutional framework of the system

It is exercised by the external bodies such as legislature and judiciary

23

Conclusion

24

Thank you for your kind attention

Thank you for your kind attention

FACILITATORProf Dr Mohammad Majid Mahmood

25

• Slide 1
• Slide 2
• Reflections
• BUDGET
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• Slide 15
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• ADMINISTRATIVE CONTROL
• Slide 21
• Slide 22
• Slide 23
• Conclusion
• Slide 25

BUDGET

Impact of Taxation

On prices Higher direct taxes have deflationary effect on prices by reducing demand However trade unions may ask for higher wages to compensate for higher taxes and effect of this will be inflationary

18

BUDGET

Impact of Taxation

On economy Higher taxation will other things being equal reduce demand in the economy which will have deflationary effect on the economy

19

ADMINISTRATIVE CONTROLAdministrative AccountabilityAccording to Leonard D White accountability is lsquothe sum total of constitutional statutory administrative and judicial rules and precedents and the established practices by means of which publicofficials may be held accountable for their official actionsrsquo

It refers to the formal and specific location of responsibility vested in a person

While responsibility has a personal and moral connotations and is not necessarily related to formal status and power

Accountability is also defined as the answerability of a person in organization 20

ADMINISTRATIVE CONTROL

The Meaning of Control

Accountability is a kind of management Control

Control is the process of ensuring that actual activities conform to established standards and laid done procedures

Control helps managers to monitor the effectiveness of managers

21

ADMINISTRATIVE CONTROL

Types of Accountability

There are two types of accountability mechanism that make organizations to continue to achieve goals These are discussed below1Internal Control is exercised either by superior over the subordinates within the chain of hierarchy or by other parallel agencies in the executive branch of government

It consists of directing regulating supervising advising inspecting and evaluating

It should be continuously done without being felt This mechanism of accountability has positive results also 22

ADMINISTRATIVE CONTROL

Types of Accountability

2 External control is fitted outside the administrative machinery and works within the general constitutional framework of the system

It is exercised by the external bodies such as legislature and judiciary

23

Conclusion

24

Thank you for your kind attention

Thank you for your kind attention

FACILITATORProf Dr Mohammad Majid Mahmood

25

• Slide 1
• Slide 2
• Reflections
• BUDGET
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• Slide 15
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• ADMINISTRATIVE CONTROL
• Slide 21
• Slide 22
• Slide 23
• Conclusion
• Slide 25

BUDGET

Impact of Taxation

On economy Higher taxation will other things being equal reduce demand in the economy which will have deflationary effect on the economy

19

ADMINISTRATIVE CONTROLAdministrative AccountabilityAccording to Leonard D White accountability is lsquothe sum total of constitutional statutory administrative and judicial rules and precedents and the established practices by means of which publicofficials may be held accountable for their official actionsrsquo

It refers to the formal and specific location of responsibility vested in a person

While responsibility has a personal and moral connotations and is not necessarily related to formal status and power

Accountability is also defined as the answerability of a person in organization 20

ADMINISTRATIVE CONTROL

The Meaning of Control

Accountability is a kind of management Control

Control is the process of ensuring that actual activities conform to established standards and laid done procedures

Control helps managers to monitor the effectiveness of managers

21

ADMINISTRATIVE CONTROL

Types of Accountability

There are two types of accountability mechanism that make organizations to continue to achieve goals These are discussed below1Internal Control is exercised either by superior over the subordinates within the chain of hierarchy or by other parallel agencies in the executive branch of government

It consists of directing regulating supervising advising inspecting and evaluating

It should be continuously done without being felt This mechanism of accountability has positive results also 22

ADMINISTRATIVE CONTROL

Types of Accountability

2 External control is fitted outside the administrative machinery and works within the general constitutional framework of the system

It is exercised by the external bodies such as legislature and judiciary

23

Conclusion

24

Thank you for your kind attention

Thank you for your kind attention

FACILITATORProf Dr Mohammad Majid Mahmood

25

• Slide 1
• Slide 2
• Reflections
• BUDGET
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• Slide 15
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• ADMINISTRATIVE CONTROL
• Slide 21
• Slide 22
• Slide 23
• Conclusion
• Slide 25

ADMINISTRATIVE CONTROLAdministrative AccountabilityAccording to Leonard D White accountability is lsquothe sum total of constitutional statutory administrative and judicial rules and precedents and the established practices by means of which publicofficials may be held accountable for their official actionsrsquo

It refers to the formal and specific location of responsibility vested in a person

While responsibility has a personal and moral connotations and is not necessarily related to formal status and power

Accountability is also defined as the answerability of a person in organization 20

ADMINISTRATIVE CONTROL

The Meaning of Control

Accountability is a kind of management Control

Control is the process of ensuring that actual activities conform to established standards and laid done procedures

Control helps managers to monitor the effectiveness of managers

21

ADMINISTRATIVE CONTROL

Types of Accountability

There are two types of accountability mechanism that make organizations to continue to achieve goals These are discussed below1Internal Control is exercised either by superior over the subordinates within the chain of hierarchy or by other parallel agencies in the executive branch of government

It consists of directing regulating supervising advising inspecting and evaluating

It should be continuously done without being felt This mechanism of accountability has positive results also 22

ADMINISTRATIVE CONTROL

Types of Accountability

2 External control is fitted outside the administrative machinery and works within the general constitutional framework of the system

It is exercised by the external bodies such as legislature and judiciary

23

Conclusion

24

Thank you for your kind attention

Thank you for your kind attention

FACILITATORProf Dr Mohammad Majid Mahmood

25

• Slide 1
• Slide 2
• Reflections
• BUDGET
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• Slide 15
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• ADMINISTRATIVE CONTROL
• Slide 21
• Slide 22
• Slide 23
• Conclusion
• Slide 25

ADMINISTRATIVE CONTROL

The Meaning of Control

Accountability is a kind of management Control

Control is the process of ensuring that actual activities conform to established standards and laid done procedures

Control helps managers to monitor the effectiveness of managers

21

ADMINISTRATIVE CONTROL

Types of Accountability

There are two types of accountability mechanism that make organizations to continue to achieve goals These are discussed below1Internal Control is exercised either by superior over the subordinates within the chain of hierarchy or by other parallel agencies in the executive branch of government

It consists of directing regulating supervising advising inspecting and evaluating

It should be continuously done without being felt This mechanism of accountability has positive results also 22

ADMINISTRATIVE CONTROL

Types of Accountability

2 External control is fitted outside the administrative machinery and works within the general constitutional framework of the system

It is exercised by the external bodies such as legislature and judiciary

23

Conclusion

24

Thank you for your kind attention

Thank you for your kind attention

FACILITATORProf Dr Mohammad Majid Mahmood

25

• Slide 1
• Slide 2
• Reflections
• BUDGET
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• Slide 15
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• ADMINISTRATIVE CONTROL
• Slide 21
• Slide 22
• Slide 23
• Conclusion
• Slide 25

ADMINISTRATIVE CONTROL

Types of Accountability

There are two types of accountability mechanism that make organizations to continue to achieve goals These are discussed below1Internal Control is exercised either by superior over the subordinates within the chain of hierarchy or by other parallel agencies in the executive branch of government

It consists of directing regulating supervising advising inspecting and evaluating

It should be continuously done without being felt This mechanism of accountability has positive results also 22

ADMINISTRATIVE CONTROL

Types of Accountability

2 External control is fitted outside the administrative machinery and works within the general constitutional framework of the system

It is exercised by the external bodies such as legislature and judiciary

23

Conclusion

24

Thank you for your kind attention

Thank you for your kind attention

FACILITATORProf Dr Mohammad Majid Mahmood

25

• Slide 1
• Slide 2
• Reflections
• BUDGET
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• Slide 15
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• ADMINISTRATIVE CONTROL
• Slide 21
• Slide 22
• Slide 23
• Conclusion
• Slide 25

ADMINISTRATIVE CONTROL

Types of Accountability

2 External control is fitted outside the administrative machinery and works within the general constitutional framework of the system

It is exercised by the external bodies such as legislature and judiciary

23

Conclusion

24

Thank you for your kind attention

Thank you for your kind attention

FACILITATORProf Dr Mohammad Majid Mahmood

25

• Slide 1
• Slide 2
• Reflections
• BUDGET
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• Slide 15
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• ADMINISTRATIVE CONTROL
• Slide 21
• Slide 22
• Slide 23
• Conclusion
• Slide 25

Conclusion

24

Thank you for your kind attention

Thank you for your kind attention

FACILITATORProf Dr Mohammad Majid Mahmood

25

• Slide 1
• Slide 2
• Reflections
• BUDGET
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• Slide 15
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• ADMINISTRATIVE CONTROL
• Slide 21
• Slide 22
• Slide 23
• Conclusion
• Slide 25

Thank you for your kind attention

Thank you for your kind attention

FACILITATORProf Dr Mohammad Majid Mahmood

25

• Slide 1
• Slide 2
• Reflections
• BUDGET
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• Slide 15
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• ADMINISTRATIVE CONTROL
• Slide 21
• Slide 22
• Slide 23
• Conclusion
• Slide 25