The National Budget
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The National Budget
• The National Budget is a document which gives a detailed breakdown of Government income and Government expenditure for the next year.
• It is prepared by the department of finance
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The National Budget
• Government income comes from a number of sources: current income:
1.Taxation
Income tax
Corporation tax
Value added tax
Deposit interest retention tax
Customs and excise duties
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The National Budget
2. Other Sources
European Union Grants
Sale of Semi-State Company
Dividends from Semi-State Company
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Current Expenditure
• Day to Day spending
Wages to army, Gardai, nurses, teachers and others working in the public sector
Social welfare e.g. Unemployment benefit,
Hospital supplies
Interest on the national debt
Capital Expenditure
• Long term spending of once off
Building new school, hospital
Building roads, motorways
New trains for CIE
The National Budget
The national budget can be either a:
•Balanced Budget
Planned total income is equal to planned total expenditure
•Surplus Budget
Planned total income is greater than planned total expenditure
• Deficit Budget
Planned total income is less than planned total expenditure
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The National Budget
• Income and expenditure can be either “capital” or “current”
• Capital refers to “long term” or “once off” income and expenditure such as:
1. Receiving money from the sale of an asset
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The National Budget
• Capital refers to “long term” or “once off” income and expenditure such as:
2. Spending money on the purchase of an asset
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The National Budget
• Current refers to “day to day” or “regular” income and expenditure such as:
3. Receiving wages each week or each month
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The National Budget
• Current refers to “day to day” or “regular” income and expenditure such as:
4. Spending money on the weekly groceries
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