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The Gov. and Economy
Chapter 27
| Term | Definition |
|---|---|
| Balanced budget | This is when government current revenue is equal to government current expenditure. |
| Capital budget | This contains expenditure by the government on items that are not used up during the year, but that increase the productive capacity of the country in future years. |
| Capital budget balance | This is net capital expenditure minus capital resources. |
| Current budget | The current budget includes current expenditure and current revenue. |
| Current budget balance | This is net current expenditure minus net current revenue. |
| Current budget deficit | This is when government current expenditure exceeds government current revenue. |
| Current budget surplus | This is when government current revenue exceeds government current expenditure. |
| Current expenditure | Government spending on items that are used up during the year. |
| Current revenue | The money received by the government in direct and indirect tax, and other income received during the year. |
| Direct taxes | Taxes levied on income or wealth. |
| Estimates of Recepits and Expenditure | A paper published each year before the budget containing the estimates of spending for the coming year, with an estimate of the revenue that would be collected by the government if the rates of tax were not changed. |
| Fiscal policy | Any action by the government which affects the size, structure and timing of government revenue and expenditure. |
| General government balance | This instance borrowing government of the whole government sector including central government, local authorities, the non-commercial semi-stat bodies and the Social Insurance Fund. |
| General government debt | The includes the National Debts, the death of non-commercial semi-state bodies and the debt of local authorities. |
| Impact of a tax | This refers to the individual, company, good or service on which the tax was initially levied. |
| Incidence of a tax | This refers to the individual, company, good or service on which the burden of the tax eventually rests. |
| Indirect taxes | Taxes levied on goods and services. |
| National debt | This is the total amount of money borrowed by the central government that is still outstanding (that is, not yet paid back). |
| Neutral budget | This is when the overall effect of the budget is neither inflationary nor deflationary. |
| Privatisation | This is the sake of a government-owned company to private investors. |
| Progressive tax | This is a tax that takes a higher percentage of income from a high-income earner than from a low-income earner. OR a tax which takes an increasing proportion of income as income rises. |
| Proportional tax | This is a tax that takes the same percentage of income from all income earners. |
| Regressive tax | This is a tax that takes a higher percentage of income from a low-income earner than from a high-income earner. OR a tax that takes a decreasing proportion of income as income rises. |
| Semi-state bodies (state-sponsored bodies) | There are state-owned bodies that are involved in the provision of a wide range of goods and services to the public. |
| The Appropiation Act | This act allows the government to spend its money in accordance with the provision of the budget. |
| The Finance Act | This act gives the government permission to make the changes in taxation contained in the budget. |
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jmartineconomics
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