Government Flashcards
What is government revenue
Government Revenue refers to all money received by the government e.g taxation.
What is government expenditure
Government Expenditure refers to all money spent by the government e.g spending on the health service.
Sources of government current revenue
Income Tax: tax paid on wages and salaries
Universal Social Charge (USC): a tax paid on wages and salaries
Pay Related Social Insurance (PRSI): insurance paid by employers and employees which is used to fund social welfare payments e.g jobseekers benefit
Value Added Tax (VAT): tax on the value added to goods at each stage of their production.
Corporation Tax: tax paid on a company’s profits
Excise Duty: a tax charged on certain goods to try and reduce consumption of them e.g alcohol
Customs Duties: tax charged on goods coming into Ireland from outside the EU
Local Property Tax: a tax on residential properties
Sources of government capital revenue
Capital Gains Tax (CGT): tax on profits earned from investments
Capital Acquisitions Tax (CAT): a tax on gifts and inheritances
Dividends from State Companies: the government receive a percentage of any profit earned by companies that they have a share in e.g An Post
Stamp Duty: a tax for registering legal documents e. g the deeds of a house
Sale of State-Owned Companies: the government can sell their share in a company that they own e.g in 2015 the government sold its 25% stake in Aer Lingus to IAG for €335 million
Borrowings: a loan from other governments or financial institutions
EU Grants: money from the EU that is used to support important economic and social projects
What is the national budget and why is it used
A national budget is the government’s financial plan for the year ahead. It is used to ensure that the government has enough money to run the country
What is a balanced budget
• This is when planned revenue = planned expenditure
What is a budget surplus
• This is when planned revenue is more than planned expenditure.
What is a budget deficit
• This is when planned revenue is less than planned expenditure.
