Question

Which of the following is a primary **source of financing** for public expenditure?

• A. Fines and fees.
• B. Sale of government assets.
• C. International aid and grants.
• D. Taxation and borrowing.

Answer 1

Answer:

D. Taxation and borrowing.

• The two main sources of government funds are taxes (revenue) and borrowing (which finances deficits), both of which are used to cover public expenditure.