The National Budget 16

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 16

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 16

The National Budget 2.Other Sources  European Union Grants  Sale of Semi-State Company  Dividends from Semi-State Company 16

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 16

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 16

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 16

The National Budget Current refers to “day to day” or “regular” income and expenditure such as: 3.Receiving wages each week or each month 16

The National Budget Current refers to “day to day” or “regular” income and expenditure such as: 4.Spending money on the weekly groceries 16