1. Government Revenue and Expenditure
LO 3.4

2. The National Budget
The national budget details Ireland’s revenue and expenditure for the year.
It is published in October each year by the Minister of Finance Paschal Donohoe (2019).
The Minister of Finance asks all other Ministers (e.g. Education, Health) to submit their estimates (how much money their department will need) and then presents the actual budget.

3. Capital Income
Capital income is money the Government receives occasionally or one time only. This is usually in the form of EU grants or income from the sale of valuable assets including land, buildings and State owned companies.
Sources of Capital Government Income Examples
EU Grants
Budget Surplus from last year
Sale of State Assets
Dividends from state companies
Borrowings

4. State Owned Companies
State Owned Companies Formed by the Dáil and owned by the state with a board of directors appointed to run them.
When a government sells a State- Owned company it is called privatisation.
If the government takes over a company it is called nationalisation.

5. Current Income
Current income is money that the Government receives regularly. This revenue comes mainly from taxes and is the most important source of income for the Government.
Sources of Current Government Income Examples
PAYE
VAT
Corporation Tax
DIRT - Deposit Interest Retention Tax
Excise Duties (Taxes on petrol, alcohol)
National Lottery

6. Capital Expenditure
Capital expenditure is money the Government spends occasionally or one time only.
Sources of Capital Government Expenditure Examples
Building new schools
Building new hospital
Buying long term assets for state departments- e.g. new computer for a school

7. Current Expenditure
Current expenditure is money that the Government spends regularly.
Sources of Current Government Expenditure Examples
Social Welfare Payments
Payments for the running of schools and other departments- e.g. light + heat
Government salaries
Day to day running of the health service
Debt Servicing –payment of interest on the national debt

8. 2018 Junior Certificate HL Questions

9. Budget Surplus
Budget Deficit
Reduce tax rates such as PAYE- people will have more money to spend
Increase taxes
Improve Infrastructure such as roads
Decrease spending
Increase spending on public services such as schools and hospitals
Borrow from ECB

10. Task
You will design a three-fold information leaflet, aimed at a particular group of people, which will help them understand the budget. Your leaflet should be directed at one of the following groups:
• Single worker
• Pensioner
• Families
You will assess how Budget 2018 has affected your chosen group. You will work individually. This activity is based on real-life data from Budget 2018.

11. Success Criteria
SC1: Explain capital and current expenditure and income, using examples.
SC2: Explain what a national budget is
SC3: Identify and assess what information their chosen group will want to know about Budget 2018
SC4: Use images or visual appropriate to their chosen group
SC5: Use language appropriate to their chosen group
SC6: Explain the benefits of this budget for their chosen group