Government Revenue & Expenditure/Economic Growth

Main taxes the Irish gov get income from

95 percent of government income from tax. PAYE, Corporation

Lesser & Other taxes that provide the gov with revenue

Motor tax, property tax, TV license, national lottery

Current Government Expenditure

Day to day expenditure, smaller amounts. E.g. wages (nurses). Funded by taxes

Capital Government Expenditure

One off, large amounts. E.g. building a new hospital. Funded by borrowing EU savings

Current Government Income

Day to day income, regular amounts. E.g. taxes

Capital Government Income

Once off income. Large amounts. E.g. EU grants

Gov budget surplus

Planned income\> Planned Spending

Gov budget deficit

Planned spending> Planned income

4 functions of taxation

Financial, social, legal, ethical

Financial (4 functions of taxation)

Tax collected in order to run gov. Gov reducing taxes gives people more money to spend, this helps economic growth. E.g. in 2023 budget, workers taxes reduced

Social (4 functions of taxation)

Provide money for government to improve social services for public e.g. street lighting. Sugar tax intended to promote health and remove stress on healthcare system.

Legal (4 functions of taxation)

Not paying taxes is a crime (tax evasion). Retailers collect VAT from consumers, pass it on to The Office of the Revenue Commissioners

Ethical/moral (4 functions of taxation)

tax system used to transfer wealth from the upper class to the less fortunate. First 40000 taxed at 20 percent, rest taxed at 40 (2023). Taxes used to pay Job seekers benefit and pensions

Economic growth (definition)

Increase in the amount of goods and services from one year to the next

Characteristics of economic growth

Low inflation, high employment, low unemployment, growth in population

Benefits of Economic Growth on society

High levels of employment means less people on Jobseeker's benefit, allows gov to spend on infrastructure, healthcare. Gov gets more revenue from income taxes as more are working

Benefits of economic growth on environment

Gov will have more money to spend on environmental issues. E.g windfarms. If companies increase their profits, may invest in cleaner production methods.

Consequences of economic growth

Increase in goods produced may increase waste/pollution. Pressure on housing, due to increase in pop. Estates possibly built on green areas

CPI

consumer price index

What is the CPI

a measure of the overall cost of the price of regular household items over the years. Used to measure inflation.

What does ATM stand for?

Automated Teller Machine