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The National Budget - Coggle Diagram
The National Budget
How its prepared
End of year estimates from departments
Discussions with departments
Department Budget: don’t get as much as requested
Decisions made = National Budget
Unpredictable income = cutbacks
If shortfall need to borrow
GBR = money borrowed each year = national debt
Debt servicing = interest on national debt
What is a NB
Government Income and Expenditure for the next year
Presented annually
Prepared by the Minister of Finance
Lists of all income expected over the next year
Types of budget
Balanced budget
Budget surplus
Budget deficit
What to do with budget surplus
Capital expenditure: roads, buildings etc.
Used to pay off national debt
Increase spending on social welfare.
What to do with a budget deficit.
Increase current revenue: Increase tax rates.
Reduce the government expenditure.
Borrow the amount equal to the deficit.
Mixed Economy
Public
Health
Roads
Limited budget
Therefore, decisions, priorities...
Private
Food
Entertainment
Types of income and expenditure
Current - Day to day
Income tax (PAYE), VAT, Corp. Tax
Capital - Long term once off
Privatising, Grants, Dividends from state sponsored bodies
2019 National Debt is 399.3 billion