3Y: Goverment Revenue & Expenditure Flashcards
What is Goverment Revenue?
Goverment Revenue is all the money received by the goverment.
What are the 2 categories of Goverment Revenue?
Goverment revenue can be divided into two distinct categories:
- Current Revenue - money received on a regular or day-to-day basis.
- Capital Revenue - money received on a irregular or one off basis.
What are the sources of Goverment Current Revenue? (13)
- Income Tax
- USC
- PRSI
- VAT
- Corporation Tax
- Excise Duty
- Customs Duties
- Local Property Tax
- Capital Gains Tax
- Capital Acquisitions Tax
- Central Bank Surplus Income
- Dividends from State Companies
- Stamp Duty
What are the sources of Goverment Capital Revenue? (3)
- Sale of State-Owned Companies (privatisation).
- Borrowings from other goverments or financial institutions.
- EU grants to support economic or social projects.
What is Goverment Expenditure?
Goverment expenditure refers to all money speny by the goverment.
What are the 2 categories of Goverment Expenditure?
Goverment expenditure can be divided into two distinct categories:
- Current Expenditure - money spent on a regular or day-to-day basis.
- Capital Expenditure - money spent on one off projects or infrastructure that will have long term benefits for the country.
What are the sources of Goverment Current Expenditure? (7)
- Social Protection
- Healthcare
- Education
- Justice
- Agriculture
- Defence
- Transport & Tourism
What are the sources of Goverment Capital Expenditure? (3)
- Public Transport: building new rail networks, buying new trains and buses.
- Health: building new hospitals, buying new equipment and ambulances.
- Education: building or extending schools, buying furniture and ICT equipment for schools.
What is the National Budget?
The National Budget is the goverments financial plan for the year ahead.
The national budget sets out all the income that the government expect to receive and details their spending plans.
What 2 Goverment Departments prepare the National Budget?
- The Department of Public Expenditure and Reform assess each departments request for money and sanctions all government spending.
- The Department of Finance authorises all taxes and government borrowing.
Who delivers the budget and when?
The Minister for Finance outlines the Budget in the Dail in early October.
The current Minister for Finance is Paschal Donohue.
What is a Balanced Budget?
If the government expects that the planned revenue will be equal to the planned expenditure, it will be a balanced budget.
A balanced budget is also called a neutral budget.
What is a Budget Surplus?
If revenue is expected to be greater than planned expenditure, the government will have a budget surplus.
This means the government is taking more taxation than it is spending.
Since a budget surplus makes the economy smaller, it is said to be a contractionary budget.
Can be used to reduce inflation.
What is a Budget Deficit?
If revenue is expected to be less than planned expenditure, the government will have a budget deficit.
This means the government is living beyond it’s means.
A budget deficit is generally seen as a negative outcome.
A deliberate decision to inject more money into the economy is said to be a expansionary budget.
Can be used to boost economic growth.
What are the solutions to a Budget Deficit? (3)
- Increase Planned Revenue; by raising taxation levels or selling of state assets.
- Reduce Planned Expenditure; by cutting the level of public services or projects.
- Borrow Money; To bridge the gap between revenue and expenditure. This is a short term solution paying interest and repayments and will impact future budgets.
