National Budgeting (Ch 37 on PP)

Question 1

What is a national budget?

Answer 1

It is a document with the governments estimate of its income and expenditure for the coming year.

Question 2

What is current expenditure?
Give examples.

Answer 2

It is day-to-day/ regular spending.
-Social welfare e.g. teachers salary
-Wages and salary
-Running costs of governmental departments
-Interest on national debt and borrowing

Question 3

What is current income?
Give an example.

Answer 3

It is regular money coming in
-Income tax (PAYE)
-VAT
-Corporation tax
-Excise Duties
-DIRT
-Charges of services
-National Lottery

Question 4

What is a balanced budget?

Answer 4

When planned income is equal to planned expenditure

Question 5

What is a surplus budget?

Answer 5

When planned total income is greater than planned total expenditure

Question 6

What is a deficit budget?

Answer 6

When planned total income is less than planned total expenditure

Question 7

What can you do when you have a budget surplus?

Answer 7

-Reduce taxes
-Pay off national debt/borrowing
-Increase spending

Question 8

How can you reduce a budget deficit?

Answer 8

-Increase taxation
-Reduce expenditure
-Cut pay
-Borrow

Question 9

What is capital expenditure? Give examples.

Answer 9

It is once-off spending
e.g. schools, roads, hospitals, grants to State companies

Question 10

What is capital income? Give examples

Answer 10

Long-term or once-off money that is coming in.
e.g. Borrowing, sale of State companies (Aer Lingus), EU grants

Question 11

What is a current budget?

Answer 11

Expenditure/ income needed to run the country on a day to day basis

Question 12

How do you find the exchequer budget?

Answer 12

Total income - Total expenditure

Question 13

What is debt servicing?

Answer 13

The amount of money in the budget, allocated to paying national debt