Government Revenue and Expenditure

Question 1

Mixed Economy

Answer 1

Some goods and services are provided by the private sector while the government (or public sector) provides many more.

Question 2

Government Revenue

Answer 2

Refers to all money received by the government.

Question 3

Current Revenue

Answer 3

Money received by the government on a regular or day to day basis. The vast majority of this income comes from taxation.

Question 4

Capital Revenue

Answer 4

Money received on an irregular or once off basis.

Question 5

Major sources of government current revenue

Answer 5

Income tax, USC, PRSI, VAT, Corporation tax, Excise duty, Local property tax, CGT, CAT.

Question 6

Major sources of government capital revenue

Answer 6

Sale of state- owned companies, Borrowings, EU grants.

Question 7

Government expenditure

Answer 7

Refers to all money spent by the government

Question 8

Current expenditure

Answer 8

Money spent by the government on a regular or ongoing basis. The majority of government current expenditure involves day to day provision of essential public services

Question 9

Capital expenditure

Answer 9

Spending on “one -off” projects or on infrastructure that will have long term benefits for the country.

Question 10

Examples of Government Current Expenditure

Answer 10

Social protection, Healthcare, Education, Justice, Agriculture, Defence, Transport and Tourism.

Question 11

Examples of Government Capital Expenditure

Answer 11

Public transport, Health and Education

Question 12

National Budget

Answer 12

Is the governments financial plan for the year ahead.

Question 13

Who prepares the National Budget

Answer 13

The department of Finance and Department of Public Expenditure and Reform

Question 14

A Balanced Budget

Answer 14

If the government expects that planned revenue will be equal to planned expenditure it will a balanced.

Question 15

A Budget Surplus

Answer 15

If revenue is expected to be greater than planned expenditure, the government will have a budget surplus.

Question 16

A Budget Deficit

Answer 16

If planned revenue is less than planned expenditure, the government will be facing a budget deficit. This indicates that the government is living beyond its means and will have to increase taxes, cut spending or borrow money to finance its plans.