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Government Revenue and Expenditure - Coggle Diagram
Government Revenue and Expenditure
Definition of a National Budget-
A financial plan created by the government
Shows expected revenue (income) and expenditure (spending) for the coming year
Used to manage the country’s finances
Need for a National Budget-
Ensures the government can plan how to use public money responsibly
Helps control overspending
Allows prioritisation of essential services (e.g., health, education)
Helps maintain economic stability
Provides transparency and accountability
Government Revenue (Income)-
Main Sources
Taxes
Income tax
VAT
Corporation tax
Excise duties
Non-tax revenue
Licence fees
Dividends from state companies
EU funding
Government Expenditure (Spending)
Current expenditure
Wages of public servants
Social welfare payments
Running hospitals, schools, Gardaí
Capital expenditure
Building roads, schools, hospitals
Investment in infrastructure and technology
Types of Budgets-
Balanced Budget
Revenue = expenditure
Government is neither borrowing nor saving
Surplus Budget
Revenue > expenditure
Extra money available to reduce debt or increase investment
Deficit Budget
Expenditure > revenue
Government must borrow money
Can stimulate the economy but may increase national debt
Impact of Budget Decisions on Irish Society-
Affects cost of living (tax changes, price of goods)
Influences employment levels through investment and spending
Impacts public services such as health, education, welfare
Shapes economic growth and national debt
Determines levels of support for vulnerable groups
Can encourage or discourage certain behaviours (e.g., carbon taxes)
Example of an Outline National Budget-
Estimated Revenue
Income tax: €X billion
VAT: €X billion
Corporation tax: €X billion
Excise duties: €X billion
Other revenue: €X billion
Estimated Expenditure
Health: €X billion
Education: €X billion
Social protection: €X billion
Housing: €X billion
Transport & infrastructure: €X billion
Budget Position
Balanced / Surplus / Deficit (depending on the figures used)