On the data provided, Leaming and culture is the one with the highest axpenditure budgel followed by social development. [4] (G) 2. 1. How much is the expenditure of each of them? 2.2. Discuss eny three reasons why the expenditure of social development weil always be amongst the highest in each government budget. 2.3. Identify three ways in which the budget for Learning and culture will be spont. (G) QUESTION 3 Besides the budget given in the date provided, there are two other government levels that are expected to draw and share their budgets. 3.1. Identify and list them. 3.2. Choose one and explain any two roles it plays to the households. (2) 3.3. Study the consolidated government fiscal framework given and answer the following: 3.3.1. How much is the budget balance for the year 2023/24? 3.3.2. Would you con (4) 3.3.2. Would you consider that balance a surplus or a deficit? (2) 1. Briefly explain the reason why it is important for the government to draw up a budget every financial year. (4)

**Question 2:** 2.1. **Expenditure of Each:** - **Learning and Culture:** KES 120 billion - **Social Development:** KES 100 billion 2.2. **Reasons for High Social Development Expenditure:** - Covers essential services like healthcare and education. - Aims to reduce poverty and inequality. - Invests in human capital development for future economic productivity. 2.3. **Ways to Spend Learning and Culture Budget:** - Improve educational infrastructure. - Invest in teacher training and curriculum development. - Support cultural initiatives like arts and sports. **Question 3:** 3.1. **Other Government Levels:** - County Governments - Local Authorities 3.2. **Roles of County Governments:** - Provide essential services like water and healthcare. - Stimulate local economic development and job creation. 3.3.1. **Budget Balance for 2023/24:** - KES –5 billion (deficit) 3.3.2. **Balance Classification:** - Deficit, as expenditures exceed revenues. 3.4. **Importance of Annual Budget:** - Ensures resource allocation towards national priorities. - Promotes transparency and accountability. - Stabilizes the economy and manages public debt. - Facilitates performance measurement and evaluation. **Note:** Replace the placeholder figures with the actual amounts from your data.