FUNDING STRATEGIES: UNDERSTANDING GOVERNMENT EXPENDITURE IN GHANA'S CONTEX

Abstract

Government expenditure plays a crucial role in driving economic growth worldwide. It provides the necessary resources for building infrastructure and supporting various economic activities. However, the financing channels for government expenditures can significantly impact both the trajectory of these expenditures and each other. While traditional sources such as direct and indirect taxes and non-tax revenues are preferred, developing economies often resort to borrowing to meet their budgetary requirements due to shortfalls in conventional revenue collection. This paper explores the intricate relationship between government expenditure and its financing modes, shedding light on how they mutually influence each other. By analyzing these dynamics, we gain valuable insights into the challenges and opportunities associated with financing government expenditures in developing economies.