The South African national budget Flashcards
What is a national budget
A government document presenting the government’s proposed revenues and spending for a financial year
What is the national budget called
Statement of income and expenses
Who is the auditor General
Mr Thembekile Kimi Mwaketu
What is taxes
Money that the government collects from citizens for services which they give
What is debt
The cost of borrowing money from external parties
Direct tax
Taxes which citizens pay directly to the government
Income tax- a percentage of money taken from employees monthly wage or salaries
Business tax- paid on the profits a business generates
Indirect taxes
Taxes which people pay indirectly to the government via a business or service provider
VAT- value added tax -15% increase on luxury items
Sin tax- tax which is levied on cigarettes and alcohol
Custom duty- tax paid directly to municipalities for water services etc.
Other ways the government recieves its revenue
Electricity levies Airport tax Property tax Sale of government assets Interest on government investments
3 differences between a wage and a salary
Wages are paid weekly, salaries are paid monthly
Wages are not fixed amounts of money as it can change and salaries amount of money stay the same each month
Wages are paid to low income unprofessional employees and salaries are paid to higher income professional employees
What services does the government spend its revenue on
Social grants to poor and old people (SASSA)- South Africa social security agency
Public transport
Job creation projects
Education
Health services
Social services such as housing for children who are orphans
Infrastructure
How does the government use its spending to correct the mistakes of the past
Social grants for those who are not able to work
Free education for poor South African citizens
Free primary healthcare for poor South African citizens
Free water and electricity for poor South African citizens
