Budgets Flashcards
What is the National budget?
- Expected income and expenditure of the country.
- Drawn up by the Minister of Finance.
- Describes how much money government hopes to earn and how this money will be spent.
What are the responsibilities of the Government towards the citizens (think in terms of the budget)?
- Providing health care facilities
- Educational facilities
- Infrastructure
- Housing
- Roads / Transport
- Social security / police
Name the different taxes you get on income?
- Personal Income tax:
- Company tax:
- Capital gain tax:
- Excise tax
- Customs tax
- Value Added Tax (VAT)
What is Personal Income tax?
Tax paid by -individuals.
-IRP5. Indicates the amount of income tax that was subtracted during the year.
What is Company tax?
- Tax paid by companies on the profit that the companies earn.
- SARS calculate according to table
What is Capital gain tax?
Paid by individuals when they earn profits due to the sale of certain assets.
What is Excise tax?
- Also called sin tax.
- Tax levied on luxury items that is bad for you e.g. cigarettes and alcohol
What is Customs tax
Tax imposed on imports.
What is Value Added Tax (VAT)?
-Tax on goods and services. 14%.
What does GDP stand for?
Gross domestic product
What is GDP?
- The total value of all final goods and services.
- It is impossible to add different goods and services together.
- That were produced in South Africa. Finished goods and services that were produced.
- In a particular period. Usually a year.
- To measure economic growth.
What is the difference between economic growth and economic development
Economic growth:
-Takes place when there is an increase in the number of goods and services that were produced in a specific period of time.
Economic development:
-Takes place when there is an increase in the standard of living of a country’s citizens.
What are Trade Agreements?
- Agreements between the governments of different countries to promote trade between those countries.
- Promotes globalisation
What are the Advantages of Trade Agreements?
- Greater variety of goods and services
- Money can easily be moved from one country to another.
- Labour and resources available in countries.
What are the disadvantages of Trade Agreements?
- Countries can become dependent on one another
- Countries can become dependent on one another
- Economic disruptions can affect other nations
