Government Revenue and Expenditure Flashcards
Mixed Economy
Some goods and services are provided by the private sector while the government (or public sector) provides many more.
Government Revenue
Refers to all money received by the government.
Current Revenue
Money received by the government on a regular or day to day basis. The vast majority of this income comes from taxation.
Capital Revenue
Money received on an irregular or once off basis.
Major sources of government current revenue
Income tax, USC, PRSI, VAT, Corporation tax, Excise duty, Local property tax, CGT, CAT.
Major sources of government capital revenue
Sale of state- owned companies, Borrowings, EU grants.
Government expenditure
Refers to all money spent by the government
Current expenditure
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
Capital expenditure
Spending on “one -off” projects or on infrastructure that will have long term benefits for the country.
Examples of Government Current Expenditure
Social protection, Healthcare, Education, Justice, Agriculture, Defence, Transport and Tourism.
Examples of Government Capital Expenditure
Public transport, Health and Education
National Budget
Is the governments financial plan for the year ahead.
Who prepares the National Budget
The department of Finance and Department of Public Expenditure and Reform
A Balanced Budget
If the government expects that planned revenue will be equal to planned expenditure it will a balanced.
A Budget Surplus
If revenue is expected to be greater than planned expenditure, the government will have a budget surplus.
