Ems budgeting section Flashcards
What is a budget
It’s a plan drawn by people, organisations and governments to help them plan how they are going to spend their money
When does the South Africans Governments fiscal year run
1March of one year to 28 Frbruary every year
What’s the main source of income that our government receives
Taxes
What does the government do with our taxes
They reconstruct or further develop our country
Meaning of surplus
When income exceeds expenditure
Meaning of deficit
When expenses exceed income
TWO types of taxes
Direct tax and indirect tax
Example of direct tax
Income tax and company tax
What is direct tax
Tax paid by individuals or businesses on all sources of income paid directly to the government
Meaning of indirect tax
Tax paid by individuals or businesses when purchasing goods or services
Examples of indirect tax
VAT, Fuel tax, Sin tax, Municipal tax
What is government expenditure
Money that a government spends eg. Education, housing, health, social grants, transport, security etc
What is the most important tool to stimulate economic growth
The National Budget
In which ways does the National Government aim to correct the imbalances
Social grants
Free healthcare
No school fees
Housing, water, and electricity
