Definitions
What is the national budget?
The national budget is the government’s financial plan for the year ahead. It shows expected revenue and planned expenditure.
What is government revenue?
Government revenue is all money (income) received by the government.
The Department of Public Expenditure, NDP Delivery and Reform is reponsible for all decisions about taxes and government borrowing
False - The Department of Public Expenditure, NDP Delivery and Reform assesses each department’s request for money and must approve government spending plans. It prepares a book of estimates, based on each department’s spending plans.
Who is the minister for Finance?
Simon Harris
Who is the minister for reform?
Jack Chambers
What is government expenditure?
Government expenditure refers to all money spent by the government.
What is current revenue?
Money received by the government on a regular, ongoing or day-to-day basis. Most of this revenue comes from taxation.
Income tax is a source of capital revenue?
False
Give two reasons for why it is important for the Irish Government to collect taxes
1)Fund public services
2)Build infrastructure
3)Reduce inequality
4)Manage the economy
5) Pay off national debt
What is the estimated cost of Dublin's metrolink?
14 - 17 billion
What is current government expenditure?
Money spent by the government on a regular or ongoing basis.
What is capital revenue?
Money received on an irregular or once-off basis. This is mainly non-tax revenue.
EU Grants are an example of capital revenue?
True
Give two positive impacts of population growth for the Irish Government
1) More workers
2)Higher tax revenue
3)Fresh skills and innovation
4)Support for aging population
5)Stronger global connections
Is the Irish government due to run a surplus or deficit for 2027?
9 billion euro surplus
What is capital government expenditure?
Spending on ‘once-off’ projects or on infrastructure that will have long-term benefits for the country.
What is meant by the term "infrastructure"?
Infrastructure is the basic facilities, structures and services needed for a country to function. It includes water, power lines, transport and communications systems, schools and hospitals.
CGT is an example of current revenue
True - Capital Gains Tax (CGT): Paid by the person who sells or gifts an asset, based on the profit (gain) they made from the time they originally acquired it to the time they disposed of it
Outline two impacts a business closure could have on the Irish economy
1)Job losses
2)Reduced tax revenue
3)Lower consumer spending
4)Decline in local communities
How much did the famous Dail bike shed cost?
€330,000 +
VAT is an example of an indirect tax, explain what is meant by an indirect tax?
An indirect tax is charged on goods and services before they reach the consumer who ultimately pays the indirect tax as part of the market price of the good or service purchased.
Explain these two types of tax:
1)Corporation tax
2)Carbon tax
1)Corporation tax - is a tax on the profits made by companies
2)Carbon tax - is a tax on the purchasing of fossil fuels ie. oil, coal and gas
The department of transport is affected by Ireland aging population
True - over 66 entitled to free travel scheme
Outline two implications for the Irish Government of having such a large government current surplus
1) More pressure to spend on certain areas such as healthcare
2)Trade unions putting pressure on govenrment to increase public sector pay eg, teachers and nurses
3)The government can pay off can pay off the national debt
How much was Irelands budget deficit in 2010?
48 + billion