National Budget Flashcards

1
Q

What is the purpose of the national budget?

A

Sets out how much money a government has made and how much money it has spent in a year.

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2
Q

The ___________ ___________ mananges South Africa’s national governments finances.

A

National Treasury.

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3
Q

Define “taxes”.

A

The amounts of money people pay to the government for public goods and services.

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4
Q

Define “charges”.

A

The prices for goods and services.

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5
Q

Define “debt”.

A

The cost of borrowing money.

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6
Q

What is government revenue?

A

The money that the government collects:

Direct & indirect tax.

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7
Q

What is direct tax?

A

Taxes paid directly to the government for the goods and services the government provides:

Income tax (Pay As You Earn).
Business tax (Paid on the profits of the business).
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8
Q

What is indirect tax?

A

Taxes that people pay indirectly, without even knowing, through businesses and municipalities:

VAT (Value added tax).
Sin tax.
Customs duty.
Import tax.
Municipal tax.
Fuel tax.
Transport tax.
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9
Q

How does the government encourage jobs and economic growth?

A

By spending money on:

  1. Public transport for workers to get to work cheaply and quickly.
  2. Job creation projects that need unskilled workers.
  3. Education.
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10
Q

What are social grants?

A

Amounts of money the government gives to poor and old people.

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11
Q

What is the government spending more revenue on in order to correct past mistakes?

A
  1. Social grants.
  2. Free education for the poor.
  3. Free primary healthcare for the poor.
  4. Free water and electricity for the poor.
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