Examkin

Question

Difficulty: MediumStructure of Government Funds

Match each public sector fund in Nigeria with its corresponding financial purpose or constitutional rule.

  • Consolidated Revenue FundMain account into which all general revenues raised or received by the government must be paid.
  • Capital Development FundFund created to finance long-term public infrastructure, developmental projects, and capital assets.
  • Contingencies FundAccount set up to meet urgent, unforeseen expenditures pending supplementary legislative approval.
  • Special FundsAccounts established for designated extra-budgetary purposes or specific statutory mandates.

Answer

The Consolidated Revenue Fund matches the main general revenue repository; the Capital Development Fund matches financing of long-term development projects; the Contingencies Fund matches meeting urgent, unforeseen expenditure; and Special Funds match designated extra-budgetary purposes.
Each government fund serves a distinct constitutional requirement: the Consolidated Revenue Fund acts as the general pool for government earnings, the Capital Development Fund funds infrastructure, the Contingencies Fund handles emergency expenditures, and Special Funds cater to specialized statutory mandates.

Step-by-Step Solution

1
Analyze the role of the Consolidated Revenue Fund.
It is the primary treasury account pooling all statutory tax and non-tax revenues.
Constitutional mandate requires general revenue to enter this account prior to legal appropriation.
2
Analyze the function of the Capital Development Fund.
It finances capital expenditure and government development schemes.
Recurrent surplus is transferred from the Consolidated Revenue Fund into this fund to execute capital projects.
3
Identify the application of the Contingencies Fund.
It serves as a reserve for unexpected emergencies.
Advances are drawn from it when delay in obtaining parliamentary approval would damage public interest.
4
Determine the nature of Special Funds.
They are dedicated funds allocated to distinct statutory activities.
These funds operate under specific statutory guidelines separate from general operational funds.

Key Concept

Structure, rules, and statutory functions of public sector funds in Nigeria
Rate this question

Topics

Structure of Government Funds

More questions from this topic