Theory question 102
Public FinanceThe table below shows the budgetary allocation of a country to selected sectors of the economy in a particular year. Study the table carefully and answer the questions that follow.
Sectors | Amount ($ Million)
Education | 6,250
Mining | 2,150
Agriculture | 4,300
Communications | 2,400
Health | 2,900
(a) Present the above information contained in the table in the form of a pie chart. (Show your workings clearly).
(b) Distinguish between a budget surplus and a budget deficit.
Show the model answer
(a) Total = $18,000 million. Angle = amount ÷ 18,000 × 360°
Education 6,250 → 125°; Mining 2,150 → 43°; Agriculture 4,300 → 86°; Communications 2,400 → 48°; Health 2,900 → 58° (total 360°)
Draw a circle, mark the sectors with a protractor, label each and give the chart a title.
(b) A budget surplus is when planned government revenue is greater than planned expenditure; a budget deficit is when planned expenditure is greater than planned revenue.
Check that the angles add up to 360°.