The National Budget Flashcards

1
Q

What is the government

A

A group of people who make laws and set policies that control how a country operates

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2
Q

What is the government responsible for/what is the meaning of government

A

Responsible for keeping order and that there is enough money for infrastructure and services eg. Roads, hospitals, schools.

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3
Q

What does the government do

A

Administer the state
Make sure it runs efficiently
Citizens obey the law
Citizens get the infrastructure they need to help the economy grow

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4
Q

What are the 3 branches of national government and what are they responsible for

A

Legislative (parliament):makes laws
Judicial (law courts):enforces laws
Executive(cabinet): describes a body with the power to carry out laws

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5
Q

Who does the legislative branch consist of

A

National Assembly, council of provinces

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6
Q

Who does the executive branch consist of

A

President
Deputy president
Ministers

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7
Q

Who does the judicial branch consist of

A

Constitutional court
Supreme Court
High court
Magistrate court

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8
Q

Where does the provincial government get its money from

A

The national treasury

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9
Q

Who appoints the premier and mec

A

The legislature of each province

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10
Q

What are mec

A

Political heads of each provincial department

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11
Q

Name some departments within the provincial government

A
Finance, 
Economic Development, 
Tourism, 
Housing, 
Education, 
Health
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12
Q

May the local/provincial government make/follow their own laws?

A

No

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13
Q

How many provincial governments are there

A

9

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14
Q

How is the job of governing provinces made easier

A

The provinces are divided into municipalities

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15
Q

Give examples of municipal service delivery

A
municipal health services, 
decisions about use of land, 
supply of electricity and water, 
sewage and sanitation, 
storm water systems, 
refuge removal, 
municipal public transport
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16
Q

What services does the national government provide

A
  • Protection: defense, police and prisons
  • Education: basic and higher education
  • Administrative: control of economic activities, foreign affairs
  • Economic: improvement of agriculture, mining, trade
  • National budget managed by minister of Finance
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17
Q

What services does the provincial government provide

A
  • Health services and welfare
  • Conservation of nature
  • Payment of pensions and social grants
  • Providing cultural infrastructure- art galleries and performing arts.
  • Construction and maintenance of provincial roads
  • Building schools
  • Provision of educators, textbooks and stationery
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18
Q

What services does the local government provide

A
  • Providing electricity and water
  • Development of residential areas
  • Providing and maintain streets in communities
  • Sewage and garbage disposal
  • Transport facilities
  • Providing buildings for local services
  • Controlling traffic
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19
Q

What is the national budget

A

The thing that sets out how much money it has made and how much money it has spent in a year

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20
Q

Who manages South Africa’s finances

A

The national treasury

Enoch Godongwana

21
Q

What does the minister of finance do

A

Decide how to spend money raised from taxes debts and and charges

22
Q

What are taxes

A

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

23
Q

What are charges

A

The prices of goods and services.

24
Q

What is debt

A

The cost of borrowing money

25
What is the money that the government collects called
Revenue
26
What are the 2 types of revenue
Direct and indirect tax
27
What is direct tax
Taxes paid directly to the government for the goods and services the government provides. There are TWO forms of direct tax: • Income tax (Pay As You Earn) • Business tax: Paid on the profits of the business.
28
What is indirect tax
VAT (Value Added Tax): paid on goods and services we buy. (15%) • Sin tax: paid on cigarettes and alcohol to discourage people from buying them • Customs duty: payable on imports • Import tax: paid on goods we buy from another country • Municipal tax: paid directly to municipalities for refuse, removal, sewage, water etc. • Fuel tax: paid on diesel, petrol etc. and built into the price. • Transport tax: paid on train and air tickets, toll roads etc.
29
How else does the government make money
From properties rented out and borrowing
30
Why and how would the government want to encourage economic growth
It gets its income from the workforce By spending money on public transport Job education projects requiring unskilled workers Education
31
What are social grants
Money given to the poor and elderly
32
How is the government trying to correct past mistakes
By spending revenue on; * Social grants * Free education for the poor * Free primary healthcare for the poor * Free water and electricity for the poor
33
What are inputs
things that you put into the production process to make goods and services.
34
What are outputs
Products and services
35
What are the inputs of a production process
Labour Land Entrepreneurship Capital
36
What is human capital
The knowledge and skills that workers get by working for a business. It increases as the workers experience in doing their jobs increases.
37
What are fair employment practices
Employment practices that focus on good labour relations.
38
What are labour relations
It is the way in which employees relate to each other in the work place
39
What is the remuneration for labour
Wages
40
What is capital
The money the production process uses, as well as machinery and equipment
41
What are the sources of capital
Own: saved up or inherited Borrowed: from bank business etc, need to pay back with interest
42
How do capital goods improve a business
Faster and better made goods and services in larger amounts for cheaper.
43
What is the remuneration for capital
Interest
44
What is the remuneration for land
Rent
45
What is entrepreneurship
The entrepreneurial thinking that brings all the inputs together and organises them into a successful production process
46
What is the remuneration for entrepreneurship
Profit
47
How are consumer prices determined
The quantity of the good or service businesses produce-supply The quantity of the good or service house holds are willing and able to purchase-demand
48
Where do businesses purchase the factors of production
In the factor or resource market
49
Where are each of the factors of production determined
Labour-labour market wages are determined here Capital- money and financial market- interest is determined here Land-rent is determined in property market