The economy: national budget

Question 1

The national budget

Answer 1

a tool the government uses to achieve sustainable economic growth and development

Question 2

fiscal policy

Answer 2

governments revenue collection and governments expenditure

Question 3

the medium-term expenditure framework (MTEF)

Answer 3

detailed framework where government at all levels plans the income and expenditure over the medium term

Question 4

medium term

Answer 4

3 years

Question 5

direct taxes

Answer 5

paid by the person on whom the tax is levied

Question 6

two biggest contributors to direct tax

Answer 6

-paye
-company tax

Question 7

indirect tax

Answer 7

tax levied on a specific transaction

Question 8

indirect tax examples

Answer 8

-vat
-fuel levy
-excise duties
-customs duties

Question 9

government expenditure

Answer 9

-education
-social welfare
-health
-housing
-protection
-economic development
-debt

Question 10

monetary policy

Answer 10

governments effects to achieve sustainable economic growth and development by controlling the supply of money in the country

Question 11

functions of SARB

Answer 11

-issues bank notes and coins
-supervises banking sector
-manages the official gold and foreign exchange reserves
-act as governments official banker
-manages the country’s exchange control policies