KK9 - Budgetary Policy, Sources of Government Revenue

Question 1

Budgetary Policy/ Fiscal Strategy

Answer 1

The estimated changes in the level and composition of federal government revenues (receipts) and expenses (outlays) for the year ahead

Question 2

Aims of Budgetary Policy

Answer 2

Can be used to alter AD, and ultimately achieve the goals of SSEG, PS, FE

Question 3

Sources of Government Revenue - Direct Taxes

Answer 3

Direct taxes include the following:
-Personal income tax (wages, interest, dividends)
-Company tax (profits)

Question 4

Sources of Government Revenue - Indirect Taxes

Answer 4

Indirect taxes include the following:
-Excise duty (imposed on select goods like alcohol) - to firms
-GST

Question 5

Sources of Government Revenue - Non-tax receipts

Answer 5

-Profits gained form government owned enterprises (e.g., aus post)
-Receipts form asset sales when gov businesses are privatised like Medibank Private (only included in headline budget outcome)
-Interest (earned by future fund), payment of loans by state and local governments etc

Question 6

Progressive tax

Answer 6

Taxes which are larger for those in higher tax brackets, proportionally effect the population (e.g., income tax)

Question 7

Regressive tax

Answer 7

Taxes which disproportionally effect a population (e.g., GST is the same for poor and rich)

Question 8

Proportional Tax

Answer 8

All people pay the same amount on a tax (e.g., GST is 10% of the overall price)