The National Bugdet Chapter 16 Flashcards Preview

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

What is income tax

A tax paid by employees on their income.

2

What is Corporation tax

A tax paid by companies on their profit.

3

What is value added tax (VAT)

A tax included in the price of goods and services.

4

What is deposit interest retention tax (DIRT)

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

5

What is customs duty

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

6

What is excise duty

A tax on cigarettes, alcohol and petrol.

7

What is EU grants

Money given to Ireland from European Union.

8

What is current income

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

9

What is Capital income

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

10

What is Current Expenditure

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

11

What is Capital expenditure

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

12

What is a balanced budget

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

13

What is a budget surplus

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

14

What is a budget deficit

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

15

What is debt servicing

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

16

What is opportunity cost

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

What is limited/ scarce resources

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

What is the National budget

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

19

What are the state owned companies

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

What are the sources of current income

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

What are the sources of capital income for the government.

1) EU Grants
2) Sale Of Semi State Bodies

22

What are the sources of current Expenditure for the government

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

23

What are the sources of capital expenditure for the Government

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

24

What are the sources of current income for a company.

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

25

What are the sources of capital income for a company

1) Government grants
2) Sale of old machinery

26

What are the sources of current expenditure for a company

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

27

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

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

What are the sources of capital expenditure for a company

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

29

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

1) Reduce some taxes
2) Spend more on social welfare

30

What is a state-sponsored body

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