In a fiscal year, a government spent a total of \text{N}1.20\text{ trillion} on public exp… — JAMB UTME

In a fiscal year, a government spent a total of $\text{N}1.20\text{ trillion}$ on public expenditure. If capital expenditure on development projects accounted for $\text{N}450\text{ billion}$ , what percentage of the total public expenditure was allocated to recurrent expenditure?

Answer: 62.5 %

Answer

The percentage share of total public expenditure allocated to recurrent expenditure is 62.5%.

Total public expenditure is divided into recurrent expenditure and capital expenditure. Subtracting capital expenditure (

\text{N}450\text{ billion}

) from total public spending (

\text{N}1,200\text{ billion}

) yields recurrent expenditure of

\text{N}750\text{ billion}

. Dividing

\text{N}750\text{ billion}

\text{N}1,200\text{ billion}

and multiplying by

100

gives

62.5\%

Step-by-Step Solution

Convert total expenditure to billions of Naira

Total Expenditure =

\text{N}1,200\text{ billion}

Harmonizes units for straightforward calculation.

Calculate recurrent expenditure

Recurrent Expenditure =

\text{N}1,200\text{ billion} - \text{N}450\text{ billion} = \text{N}750\text{ billion}

Public expenditure comprises recurrent expenditure (operational costs) and capital expenditure (investment/infrastructure).

Compute the percentage share

\left(\frac{750}{1200}\right) \times 100 = 62.5\%

Determines the proportion of total public spending directed toward recurring operational administration.

Key Concept

Classification and breakdown of public expenditure into capital and recurrent categories

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