CHAPTER 31 – GOVERNMENT AND THE ECONOMY If the government has a surplus budget for the year, it means:
• The government will have money leftover. • More money will be available for public expenditure and investment. • The government will not have to increase taxes. • The government can build up a reserve fund for a rainy day.
If the government has a deficit budget for the year, it means:
• The government will not have enough revenue to cover all planned expenditure. • Public expenditure may have to be cut. • Taxes may be increased. • The government will have to borrow money.
National budget analysis A
Go to page 219 of your Activities and Accounts Book to analyse a sample national budget.
National budget
In groups, research the main points of the most recent national budget and write a short summary of your findings.
