The National Budget 16. The National Budget The National Budget is a document which gives a detailed...

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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