The National Bugdet Chapter 16 Flashcards Preview

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Flashcards in The National Bugdet Chapter 16 Deck (30)
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1
Q

What is income tax

A

A tax paid by employees on their income.

2
Q

What is Corporation tax

A

A tax paid by companies on their profit.

3
Q

What is value added tax (VAT)

A

A tax included in the price of goods and services.

4
Q

What is deposit interest retention tax (DIRT)

A

A tax on the interest earned by people on their savings.

5
Q

What is customs duty

A

A tax on goods coming into Ireland from certain other countries.

6
Q

What is excise duty

A

A tax on cigarettes, alcohol and petrol.

7
Q

What is EU grants

A

Money given to Ireland from European Union.

8
Q

What is current income

A

Money received by the government on regular basis e.g taxation.

9
Q

What is Capital income

A

Money received by the government on a once off basis e.g EU grants.

10
Q

What is Current Expenditure

A

Government spending on the day-to-day running of the country, e.g social welfare payments

11
Q

What is Capital expenditure

A

Government spending on a long-term projects, e.g building roads, schools.

12
Q

What is a balanced budget

A

A budget where planned total income is equal to planed total expenditure.

13
Q

What is a budget surplus

A

A budget surplus is a budget where planned total income is greater than planned total expenditure.

14
Q

What is a budget deficit

A

A budget where planned total income is less than planned total expenditure.

15
Q

What is debt servicing

A

The paying off of the interest part off Ireland’s national debt.

16
Q

What is opportunity cost

A

When the government decides to spend on a particular project, some, other project has to do without funds (suffers). The project sacrificed is the opportunity cost. E.G the government decides to spend money building a new school rather than a hospital, the hospital was the opportunity cost.

17
Q

What is limited/ scarce resources

A

The government has limited income. It does not possess an endless fund to satisfy all the demands made on it, i.e it has limited resources.

18
Q

What is the National budget

A

A document that gives a detailed breakdown of government income and expenditure for the next year. (produced by the department of finance).

19
Q

What are the state owned companies

A

1) An post
2) RTE
3) VHI
4) Enterprise Ireland
5) IDA Ireland
6) CIE
7) Bord Gais
8) FAS
9) Failte Ireland
10) Bord Bia

20
Q

What are the sources of current income

A

1) Income tax
2) Corporation tax
3) VAT
4) DIRT
5) Customs Duties
6) Excise Duties
7) Dividends/profit from state sponsored bodies.
8)

21
Q

What are the sources of capital income for the government.

A

1) EU Grants

2) Sale Of Semi State Bodies

22
Q

What are the sources of current Expenditure for the government

A

1) Social welfare payments
2) Wages to public sector workers
3) Hospital running costs

23
Q

What are the sources of capital expenditure for the Government

A

1) Building new Roads
2) Building new schools
3) Buying new Garda vehicles

24
Q

What are the sources of current income for a company.

A

1) Income from sales
2) Rent received
3) Interest of Bank Account

25
Q

What are the sources of capital income for a company

A

1) Government grants

2) Sale of old machinery

26
Q

What are the sources of current expenditure for a company

A

1) Wages
2) Rent, Insurance and Oil
3) Advertising costs

27
Q

What are the ways the government can deal with a budget deficit

A

1) Borrow money
2) Increase taxes e.g income tax
3) Increase excise duties in cigarettes and alcohol
4) Sell/ semi-state company
5) Reduce spending on social welfare

28
Q

What are the sources of capital expenditure for a company

A

1) Purchase of new equipment
2) Purchase of new delivery van
3) Purchase of new premises

29
Q

What are the ways the government can deal with a budget Surplus

A

1) Reduce some taxes

2) Spend more on social welfare

30
Q

What is a state-sponsored body

A

The name given in Ireland to a business that’s is owned by the Irish state.