Government Budgetary Process and Taxation

These flashcards cover key concepts related to the government budgetary process, types of taxes, and fiscal policy.

Budgetary Process

The procedure through which the government establishes its planned expenditure and revenue for a specific period.

Book of Estimates

A document that outlines the planned expenditure for the government for the coming year and beyond.

Revenue

The income that the government collects from taxes and other sources to fund its expenditures.

Tax Revenue

Revenue generated from various taxes imposed on individuals and businesses.

Value Added Tax (VAT)

A tax levied on goods and services, ultimately paid by final consumers.

Excise Duty

A tax imposed on specific goods, such as tobacco and alcohol.

Universal Social Charge (USC)

An income tax introduced in 2011, applied based on an individual's earnings.

Pay Related Social Insurance (PRSI)

A tax that funds social insurance benefits and is deducted from income.

Pay As You Earn (PAYE)

An income tax system where employees' tax obligations are deducted from wages.

Capital Expenditure

Spending by the government on long-term investments that will increase productivity.

Current Expenditure

Day-to-day spending by the government on items such as public sector wages and social welfare.

Current Budget Surplus

A situation where current government revenue exceeds current government expenditure.

Debt to GDP Ratio

A financial metric comparing a country's total public debt to its gross domestic product.

Fiscal Policy

Government strategies regarding tax and spending to influence the economy.

Expansionary Fiscal Policy

A policy that aims to increase economic activity by reducing taxes or increasing government spending.

Contractionary Fiscal Policy

A policy aimed at reducing economic activity by increasing taxes or decreasing government spending.

Sugar Tax

A tax imposed on sugary drinks to reduce consumption and promote healthier choices.

Carbon Tax

A tax on carbon emissions, intended to encourage a shift towards more environmentally friendly energy sources.

Local Property Tax (LPT)

A tax based on property value, introduced to broaden the tax base and stabilize local government funding.

Corporation Tax

A tax on the profits earned by companies, applicable to both domestic and foreign businesses.

Capital Acquisitions Tax (CAT)

A tax on gifts and inheritances, typically a percentage of the value of the gift or inheritance.