Government Spending

Question 1

What is government spending

Answer 1

Spending in wages and spending on investment goods like schools and hospitals

Question 2

Examples of current government spending and why are they called current

Answer 2

Healthcare salaries
Drugs for healthcare
Road maintenance
These are examples of one off payments as they may occur based on demand

Question 3

Examples of continuous government spending and why are they called continuous

Answer 3

New equipment for healthcare
Extra degree equipment
Construction for motorways and bridges
Flood defence schemes
These are continuous as they are usually based off of a scheduele

Question 4

What are the 3 different types of government budgets and describe them

Answer 4

Deficit budget Expenditure>budget
Balanced budget Expenditure=budget
Surplus budget Expenditure<budget

Question 5

Sources of government spending in order

Answer 5

Social protection-benefits
Healthcare
Education
Defense (Military)

Question 6

Sources of government revenue

Answer 6

Income and corporation tax
National Insurance
Fines
Government owned businesses
Indirect tax revenue (Specific and Ad valorem)

Question 7

What is national debt

Answer 7

the accumulated government debt through government borrowing when it is running a budget deficit.

Question 8

Ways to decrease national debt

Answer 8

Increase tax
Introduce a new tax