National Budget - definition, Government’s annual financial plan for the year ahead planning their revenue and expenditure, Government revenue - definition, All income received by the government to fund public services, Examples of government revenue, PAYE, VAT, corporation tax, passport fees, TV licence, EU grants, sale of state assets, Current revenue - definition, Income collected on a recurring basis to fund day-to-day government activities, Examples of current revenue, Income tax, VAT, motor tax, passport fees, fees for services, Capital revenue - definition, Non-recurring income received by government, often used to fund large projects, Examples of capital revenue, EU grants, sale of government land or buildings, sale of shares in state companies, Government expenditure - definition, Money spent by government on services and infrastructure, Current expenditure - definition, Recurring, day-to-day spending to run public services, Examples of current expenditure, Paying public sector wages, social welfare payments, running costs of schools and hospitals, Capital expenditure - definition, Non-recurring spending on long-term investments/ projects/ infrastructure that benefit society over many years, Examples of capital expenditure, Building schools, hospitals, roads, social housing, Health - examples of current and capital spending, Current: paying nurses and doctors, buying medicines, hospital running costs • Capital: building a new hospital, installing new medical equipment, Education - examples of current and capital spending, Current: paying teachers’ salaries, school heating and resources • Capital: building new schools, constructing classrooms or science labs, Transport - examples of current and capital spending, Current: paying bus drivers, maintaining roads, operating public transport • Capital: building motorways, rail lines, major transport upgrades, Social Protection - examples of current and capital spending, Current: paying Jobseeker’s Allowance, pensions, disability payments • Capital: developing welfare IT systems or offices, Housing - examples of current and capital spending, Current: rent supports, funding homelessness services • Capital: building social housing, housing developments, Budget surplus - definition, When government revenue is greater than expenditure, Actions during a surplus, Reduce national debt, increase public spending, reduce taxes, save for future, Budget deficit - definition, When government expenditure is greater than revenue, Actions during a deficit, Increase taxes, reduce spending, borrow money (increase national debt), Balanced budget - definition, When government revenue equals expenditure, Opportunity cost - definition, Choosing one option means giving up the next best alternative

Ch30 Government Revenue and Expenditure

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