Government Revenue and Expenditure

What does the government of Ireland do with taxpayers' money? Demolish walls because they didn't measure the size of a damn printer right.

The National Budget

Records expected income and expenditure for the following year.

Minister for Finance, Minister for Expenditure and Public Reform.

They prepare the National Budget.

Income = expenditure

Balanced budget

Income > expenditure

Surplus budget

Income < expenditure

Deficit budget

What the government does with a surplus budget

-Pay off national debt
-Decrease taxation/VAT
-Increase spending, eg. social welfare payments
-Encourage business startups through grants.

What the government does with a deficit budget

-Increase EU borrowing
-Increase taxes- VAT
-Decrease spending
-Privatise- sell state-owned businesses

Government revenue

All the income the government receives.

Tax revenue

All the income the government receives from taxes. Eg, VAT, income tax, corporation tax.

Non-tax revenue

All income the government receives from sources other than taxes, eg, EU grants, plastic bag levy, court fines.

Government expenditure

The money the government spends. Can be capital or current.

Capital expenditure

Long term or once-off expenditure, eg building a hospital.

Current expenditure

Spending on the day to day running of the country, eg, paying doctors' wages.