Anytime you are calculating a budget by comparing revenue to expenditure, whether it is for a household or the government, you
TOP TIP
need to also write the word ‘surplus’ or ‘deficit’ along with the figure you have calculated. You should always make sure to include the € sign if it is in Euro.
CLASS ACTIVITYINTRO ACTIVITY
Key Skill: Calculate a National Budget and identify if it is a surplus or deficit budget
Key Skill: Advise the Minister for Finance on actions to take in the event of a deficit or surplus budget
(a) Planned Government Revenue for the same year is €110bn.
(i) Use the pie chart above to calculate the Planned Government Expenditure for that year
(ii) Compare your answer to the Planned Government Revenue of €110bn to calculate whether the budget is a surplus or deficit and by how much.
(b) Identify the sector the government plans to spend the most money on.
(c) In the event of a surplus in the National Budget, advise the Minister for Finance what to do with the surplus money
(d) Identify one example of capital expenditure and one example of current expenditure for the Department of Health.
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CHAPTER 30: Government revenue and government expenditure