CLASS ACTIVITYINTRO ACTIVITY Key Skill: Classify examples of government revenue
Part A - Study the diagram below for a country’s Planned Government Revenue and answer the questions that follow.
(a) What is the largest source of revenue for the government in the chart above?
(b) Based on the figures given in the graph above, the total planned revenue is €105bn for the year. What percentage of the total revenue does VAT make up?
Key Skill: Calculate Government Revenue
Part B Study the table showing a government’s planned sources of revenue for the year. It shows where the government’s money will come from. Planned Government Revenue for a Country in 2026
Source of Revenue PAYE
VAT
Corporation Tax Fees & Charges
Selling of a State Company EU Grant Other
€ Billions 32
21 18 6 4 8 5
(a) Add the figures above to calculate the total government revenue for 2026.
(b) Identify one source of current revenue and one source of capital revenue in the figures above. Explain your choices.
(c) In the example, what source provides the most revenue for the government?
342 2
STRAND 3
CHAPTER 30: Government revenue and government expenditure