National Budget

Question 1

What is a budget?

Answer 1

A list of future income and expenditure.

Question 2

What is the National Budget?

Answer 2

1. Expected income and expenditure of the country.
2. Drawn up by Minister of Finance.
3. Describes how much money government hopes to earn and how this money will be spent.

Question 3

What is a surplus?

Answer 3

Planned income exceeds planned expenditure.

Question 4

What is a deficit?

Answer 4

Planned expenditure exceeds planned income.

Question 5

What is government revenue?

Answer 5

1. Government collects money through tax.
2. Everybody pays tax.
3. There are different kinds of tax.

Question 6

What is direct tax?

Answer 6

Tax levied on the income or profit of person or business.

1. Personal income tax.
2. Company tax.
3. Capital gains tax.

Question 7

What is indirect tax?

Answer 7

Tax levied on goods and services.

1. Excise tax (“sin tax”)
2. Customs duties
3. Value Added Tax (VAT) - currently 14%

Question 8

What is government expenditure?

Answer 8

Government must spend tax to improve our country and to deliver essential services to citizens. Money should be spend on:

1. Education
2. Housing
3. Social grants
4. Transport
5. Security

Question 9

What is fiscal policy?

Answer 9

The way in which government uses the budget to influence the economy.

Question 10

What legislation has the Goverment adopted to redress economic inequalities?

Answer 10

1. Black Economic Empowerment (BEE) and Broad Based Black Economic Empowerment (BBBEE)
2. The Employment Equity Act
3. The Skills Development Act