Chapter 16~The National Budget Flashcards
Income tax?
A tax paid by employees on their income
Corporation tax?
A tax paid by companies on their profits
Value added tax (VAT)?
Tax included in the price of goods and services
Deposit interests retention tax (DIRT)?
A tax on the interest earned by people on their savings
Custom duty?
A tax on goods coming in to Ireland from certain other countries
Excise duty?
A tax on cigarettes, alcohol, and petrol
Current income?
Money received by the government on a regular basis e.g. taxation
Capital income?
Money received by the government on a once off faces e.g. EU grants
Current expenditure?
Government spending on the day-to-day running of the country e.g. social welfare payments
Capital expenditure?
Government spending on long-term projects e.g. Building schools, hospitals.
Surplus budget?
A budget were planned total income is greater than planned total expenditure
Deficit budget?
A budget where planned total income is less than planned total expenditure
Debt Servicing?
The paying off of the interest part of Ireland’s national debt
Opportunity cost?
When the government decides to spend money on a particular project some other project has to do without funds. The project sacrificed is the opportunity cost e.g. when the government decides to spend money on building a school rather than the hospital, the hospital is the opportunity cost
Limited/scarce resources?
The government has limited income. It does not possess an endless fund to see satisfy the demands made on it I.E it has limited resources
