Ireland accumulated a very large national debt that has to be paid off. This has arisen as previous governments borrowed very large sums of money because they ran up large budget defi cits. 1. Research what the current value of the Irish government debt is. 2. Next, fi nd out if the current government budget is in surplus, defi cit or balanced.
3. What conclusions can you draw about the current state of the Irish economy?
Pair work
An Taoiseach Sarah Feeney has a problem. The Naval Service, which provides important defence, fi shery protection and search and rescue services, has requested €250 million to spend on replacement ships.
At the same time, the Minister for Health has requested €250 million extra funding to pay for a new hospital in Dublin due to its growing population.
The government can only afford to fund one of these requests, not both.
1. Which project do you think deserves the €250 million? Give reasons for your answer.
2. From which of the following taxes do you think the money should come: Income Tax (PAYE) VAT
Excise duties Corporation tax
3. In addition to taxes, can you think of other ways the government could raise the money needed for the option you have chosen?
4. Compare your answers to questions 1, 2 and 3 with other members of your class in order to decide on the better choice for the government.
