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Gr 9 Ems > Budgets > Flashcards

Flashcards in Budgets Deck (15):
1

What is the National budget?

-Expected income and expenditure of the country.
-Drawn up by the Minister of Finance.
-Describes how much money government hopes to earn and how this money will be spent.

2

What are the responsibilities of the Government towards the citizens (think in terms of the budget)?

-Providing health care facilities
- Educational facilities
- Infrastructure
- Housing
- Roads / Transport
- Social security / police

3

Name the different taxes you get on income?

-Personal Income tax:
-Company tax:
-Capital gain tax:
-Excise tax
-Customs tax
-Value Added Tax (VAT)

4

What is Personal Income tax?

Tax paid by -individuals.
-IRP5. Indicates the amount of income tax that was subtracted during the year.

5

What is Company tax?

-Tax paid by companies on the profit that the companies earn.
-SARS calculate according to table

6

What is Capital gain tax?

Paid by individuals when they earn profits due to the sale of certain assets.

7

What is Excise tax?

-Also called sin tax.
-Tax levied on luxury items that is bad for you e.g. cigarettes and alcohol

8

What is Customs tax

Tax imposed on imports.

9

What is Value Added Tax (VAT)?

-Tax on goods and services. 14%.

10

What does GDP stand for?

Gross domestic product

11

What is GDP?

-The total value of all final goods and services.
-It is impossible to add different goods and services together.
-That were produced in South Africa. Finished goods and services that were produced.
-In a particular period. Usually a year.
-To measure economic growth.

12

What is the difference between economic growth and economic development

Economic growth:
-Takes place when there is an increase in the number of goods and services that were produced in a specific period of time.

Economic development:
-Takes place when there is an increase in the standard of living of a country’s citizens.

13

What are Trade Agreements?

-Agreements between the governments of different countries to promote trade between those countries.
-Promotes globalisation

14

What are the Advantages of Trade Agreements?

-Greater variety of goods and services
-Money can easily be moved from one country to another.
-Labour and resources available in countries.

15

What are the disadvantages of Trade Agreements?

-Countries can become dependent on one another
-Countries can become dependent on one another
-Economic disruptions can affect other nations