National Budget

Question 1

What is the purpose of the national budget?

Answer 1

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

Question 2

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

Answer 2

National Treasury.

Question 3

Define “taxes”.

Answer 3

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

Question 4

Define “charges”.

Answer 4

The prices for goods and services.

Question 5

Define “debt”.

Answer 5

The cost of borrowing money.

Question 6

What is government revenue?

Answer 6

The money that the government collects:

Direct & indirect tax.

Question 7

What is direct tax?

Answer 7

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).

Question 8

What is indirect tax?

Answer 8

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.

Question 9

How does the government encourage jobs and economic growth?

Answer 9

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.

Question 10

What are social grants?

Answer 10

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

Question 11

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

Answer 11

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