Chapter 16 - The National Budget☀️ Flashcards
What is customs duty?
A tax on goods coming into Ireland from certain other countries.
What is excise duty?
A tax on cigarettes, alcohol and petrol.
What is current income?
Money received by the government on a regular basis e.g. Taxation
What is capital income?
Money received but he government on a once-off basis e.g. EU grants
What is current expenditure?
Government spending on the day-to-day running of the country e.g. Social welfare payments
What is capital expenditure?
Government spending on long-term projects e.g. Roads and Schools
What is a surplus budget?
A budget where planned income is greater then planned expenditure.
What is a deficit budget?
A budget where planned total income is less then total expenditure.
What is dept servicing?
The paying off of the interest part of Ireland’s national debt
What is the opportunity cost?
When the government decides to spend on a particular project, some other project has to do without funds. The project sacrificed is the opportunity cost e.g. The Government decides to spend money building a school rather then a hospital, the hospital is the opportunity cost.
What are limited/scarce resources?
The government has limited income. It does not posses an endless fund to satisfy all the demands made on it i.e. It has limited resources.
What are the sources of current income for the government?
- Income tax
- Corporation tax
- VAT
- DIRT
- Customs duties
- Excise duties
- Dividends/Profits from State-Sponsored Bodies
What are the sources of capital income for the government?
- EU Grants
2. Sale of Semi-State Bodies
What are the sources of current expenditure for the government?
- Social Welfare Payments
- Wages to Public Sector Workers
- Hospital Running Costs
What are the sources of capital expenditure for the government?
- Building New Roads
- Building New Schools
- Buying New Garda Vehicles
