What is Government Money?
The whole concept of democracy greatly rest on the form of Government and on its efficacious functioning. The effective functioning of any Government is decided by the wealth it posses, in terms of money. A Government even with very efficient welfare plans for its subjects can do nothing with its treasury empty. So there has to be copious inflow of money into treasury in order to accomplish the plans committed by the Government. So which is source for the Government money?
The Government money can be defined as money collected from its own citizens in form of taxes by Canada Revenue Agency
. This money is collected with the sole aim of improving the standard of living of its own subjects. Money collected as tax is not voluntarily donated by the citizens instead they pay their taxes under duress. The collection of tax is of two types namely direct and indirect taxes. The direct tax is one which is directly levied on the person as income tax
whereas indirect tax is levied on someone who is not ostensibly responsible for paying taxes
. Under this, the tax collected for the sale of a property can be categorized as indirect tax whereas the tax levied on the property simply owned by the person can stated as direct tax. In this fashion Government manages to fill its treasury which can be later used for the betterment of its people. Again the whole process depends on the citizens’ rectitude and honesty, unless he/she realizes paying tax is a duty of every citizen rather than an unnecessary burden, the entire process of tax collection would become a fiasco.
goods and services tax harmonized sales tax provincial sales tax non-resident taxes individual tax
The main problem arises when the question of accountability is raised. People of today’s world are upset with the corrupt politicians. They wonder whether the Government money is being spent for what it is meant or it is being exploited by the so called money greedy politicians. Justifying the peoples’ apprehension, the contemporary political honchos continue to exploit Government money thanks to the mentality they had inherited from their predecessors. Even when someone comes into politics with a motive to serve the atmosphere around him coerce him to follow his predecessors.
The Canadian finance ministry has a well defined, structured policy to fetch the Government money. The finance ministry has been subdivided into several braches to have control over taxes and other forms of money that flow into the treasury. Under this we have Economic and Fiscal Policy Branch, Economic Development and Corporate Finance Branch, Tax Policy Branch. For the Canadian Government tax is not the only source of income it has found another innovative method of raising money. It is nothing but the Bank Of Canada
which was mainly established to promote economic and financial well being of Canada. The idea behind is the bank would give loans to its citizens with low interests by which people were greatly benefited, at the same time Government money can be increased to a substantial rate. The fact is if the Government money is properly spent by the politicians then response from the people will be different.