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GOVERNMENT AND THE ECONOMY ((Rate Taxable earned income (€, euros) …
GOVERNMENT AND THE ECONOMY
REVENUE
income, especially when of an organization and of a substantial nature.
CAPITAL
Capital is the money or wealth needed to produce goods and services. In the most basic terms, it is money. All businesses must have capital in order to purchase assets and maintain their operations.
NATIONAL BUDGET
The budget is presented by the Ministry of Finance at the beginning of the government's financial year, which runs from October 1st to September 30th. The budget is usually presented in Parliament by the end of September, but must be presented no later than October 15th every year.
SURPLUS / DEFICIT BUDGET
The amount by which government expenses exceed income is the fiscal deficit. If income exceeds spending, the government has a budget or fiscal surplus. A balanced budget is one in which spending equals revenue.
STATE SPONSORED BODIES
State-sponsored bodies may be organised as statutory corporations, meaning that they are officially non-profit and do not formally have shareholders, but are a board or other authority appointed by the sponsor Minister. Corporations of this type include: Córas Iompair Éireann (Irish Transport Company)
WHY IS THE GOV INVOLVED IN THE ECONOMY ?
An economic intervention is an action taken by a government or international institution in a market economy in an effort to impact the economy beyond the basic regulation of fraud and enforcement of contracts and provision of public goods.
TAXATION IN IRELAND
Self employed are subject to higher tax rates in Ireland However a large proportion of central government tax revenue is also derived from VAT, excise duties and other taxes on consumption. The standard rate of corporation tax is among the lowest in the world at 12.5%.
EXAMPLE !
Rate Taxable earned income (€, euros) Category
20% 0-€34,550 individuals without dependent children
20% 0-€38,550 single or widowed persons qualifying for the One-Parent Family tax credit
20% 0-€43,550 married couples
40% earned income remainder all categories
GOVERNMENT EXPENDITURE
Government spending or expenditure includes all government consumption, investment, and transfer payments.
EXAMPLE !
BENEFITS OF A SURPLUS BUDGET
The budget process is difficult, whether you are talking about a household, a company or a government. Running a budget surplus carries a number of advantages, including increased flexibility, lower interest costs and the ability to invest in future growth.
