budget, taxes, economic terms Flashcards
Who is the treasury?
HM treasury is the government department that oversees the overall economic and financial responsibility. It has control over public spending, taxation and making sure the economy is growing sustainably.
Areas include public spending, financial services policy, strategic oversight of the uk tax system, the delivery of infastructor projects.
What does the independent of treasury provide?
The independent treasury provides statistics on the state of the economy, an economical forecast, judge wherever the governments economical polices will achieve the governments economical aims
What are the main responsibilities of the office of budget?
overseeing government spendings and how much is invested in public services
managing national debt
controlling domestic inflation - unemployment, rises in the cost of living
promoting economic growth at home
What is the budget, who delivers it and what does it include?
The budget finales the governments spendings and taxations for that financial year. It is delivered by the the chancellor of exchequer and includes their analysis of the economical state of the county.
Where does the budget go?
The budget is then passed through house of commons known as the money bill.
does the House of Lords have any power over the budget?
No
What does the budget speech entail?
The budget speech includes areas like last years accounts and tax rises, predictions for the economy this year and financially , tax changes and the reasons for them.
When do tax changes come into play after the budget has been announced?
6pm that same night unless the chancellor says otherwise
How does the budget become a law
Leaders of the opposition replies immediately, a superficial exercise.
The rebook and financial statements are published overnight.
A four day debate begins, the bills goes to there committee for detailed consideration.
a report stage then a third reading, the House of Lords have no right to amend/reject budget bills.
What is direct tax?
Directly linked to how much an individual earns, so the more you earn the more you pay in tax
What is indirect tax?
Not linked to the individuals income, hits the poor
Examples of direct tax?
Income tax, inheritance tax
Examples of indirect tax?
VAT, airport passenger duties
What is the budget deficit/
The budget deficit is the difference the government need to make up in commercial loans to meet their spending commitments
What does inflation mean
General price levels rising and the value of money going down
