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fiscal policy - Coggle Diagram
fiscal policy
key words
current budget deficit
balanced current budget
current budget surplus
governments current budget
inflamitory budget
stimulationg the economy
deflamitory budget
inflation
neutral budge
revenue bouyency
fiscal drag
fiscal policy
functions of taxation
to act as a automatic stabiliser
to acheive social objections
ro destribute national wealth
to promote enterprise
to finance government activities
how can tax help the government acheive economic and social aims
fines for anti social behavior
littering
tax breaks to encourage activity
research and development tax credit
levy to discourage waste
plastic bags
financial aid to boost entreprise
local entreprise office
increase taxes to decreasec consumption
smoking
government spending
schools,univerictys&educational centres
roads,railways,airportsand ports
social welfare
ecorage and nurture entreprenurship
budgetary process
book of estimates-planned expenditue for year&future
presented to dail
government department estimates year expenditure-discused&reveiwed at cabnet
voted on
appropreation act
financial act
limitations of fiscal policy in stabilising business cycles
higher borrwoing costs
eu monetary policy
time barriers
crowding out
types of tax
regressive
a flat euro amount levy
direct
income tax
progressive
usc
income tax
indirect
vat
purpose of fiscal policy
stabalise theeconomy-boom and bust
keppt in flation at or under targeted level
stimulate the economy-resession
types of fiscal policy
neutral
contractionary-boom
helpt gov budget deficuit
reduce household discretionary income
expansionary-resession
woren government budget deficuit
employment increased
increase consumer spending
government expenditure
capital
not used up during the year but increase countrys productive capacity(self liquidation)
schools
roads
current
voted and non voted
voted
social welfare payments
civil servent salaries
non voted(ce ntral fund)
national debt
judge salaries
eu budget contributions
items used up day to day during the year
social welfare payments
nuses salaries
goventment revenue
capital
loans and grands from the EU
selling of state owned land
bond market
loans from county counsels and semi states
current
non taxation revenue
national lottery surplus
central bank surplus income
taxation revenue
customs
vat
how does the government balance current and capital revenue
surplus/deficuit on current account
exchequer balance
government measures to reduce budget deficuit
revenue
increase direct taxes
better funding of public services
rise in tax evasion
increaes inflation
fall in aggregate demand
fall in employment
increse indirect taxes
rise in tax evasion
better funding public services
fall in aggregate demadn
industrial disputes-wage demands
expenditure
stabalise or reduce public sector wages
industrial desputes
job moves&emigration
fall in aggregate demand
fall in efficiency
scale back on state services
fall in standerd of living
industrial disputes and public protests
costs increased in long run to reintroduce services
reduce numbers of employemnt in public sector
redundancy payment cost shock
fall in aggregate demand
long term unemployment
deteriation of public services
government meausre to increase curreny budget surplus
expenditure
increase amount of public sector employees
offers more services
better quality of life
more aggregate demand
icreased public servise wage bill
long term employment
increase current or new state services
cost decreased in long run as essential sevice
less protests/industial disputes
better quality of life
political difficultybin future if need to be revoked as economic turn
decrease national debt
lower servicing cost
bigger capacity to borrow in future to fund capital projects
lower cost of borrowing
revenue
decrease direct taxes
business oportaions in rural ireland
incresed construction employment
foreign direct investment
decrease taxes
less tax evasion
reduced inflation
inresed spending in capital projects
aggregate demand
subsets of tax
stealth tax
car tax
specific
largely unnoticed or unregognisable as a tax
what does the givernment do
ressesion
uses state funds for capital projects
attractive taxation
lower tax rates
tax breaks and grants to encorage entrepreise
boom
reduce or pay off national debt
stricter on banking sector
increase tax on consumtion
increase cash balance of natioanl tresauray managment agency
principals of a fair tax system
taxes should be
economical
should not be perceived or be a disincentive
certain
assist the distribution of wealth
convinient
evasion shouldnt be possible
equitable