JC
HUB
HUB
Government Revenue & Expenditure
Ch30
LO 3.4
LO 3.4
📌 Tap each section to expand it.
🏠 Chapter 30 — Government Revenue & Expenditure
The National Budget
▼
National Budget — the government’s annual financial plan showing planned revenue and planned expenditurePresented by the Minister for Finance each year
Surplus Budget — revenue is greater than expenditureRevenue > Expenditure
Deficit Budget — expenditure is greater than revenueExpenditure > Revenue
Balanced Budget — revenue equals expenditureRevenue = Expenditure
Top Tip: Always write the word “surplus” or “deficit” and the euro figure together. Include the € sign. Example: €10bn surplus.
Surplus → Minister for Finance: Repay national debt • Increase public spending • Reduce taxes • Save for emergencies
Deficit → Minister for Finance: Increase borrowing (repaid with interest) • Increase taxes • Reduce government spending
Government Revenue (Money In)
▼
CURRENT REVENUE
Collected on a recurring basis each year.
● Tax — PAYE, VAT, Corporation Tax
● Fees & Charges — passport fees
● State Companies — profits from ESB, An Post
● Fees & Charges — passport fees
● State Companies — profits from ESB, An Post
CAPITAL REVENUE
Once-off or non-recurring income.
● EU Grants — does not have to be repaid
● EU Loans — must be repaid with interest
● Sale of State Assets
● Long-Term Borrowing
● EU Loans — must be repaid with interest
● Sale of State Assets
● Long-Term Borrowing
For a grant: “does not have to be repaid.” For a loan: “must be repaid with interest.”
Government Expenditure (Money Out) & Departments
▼
CURRENT EXPENDITURE
Recurring day-to-day spending.
Paying teachers, doctors and nurses • Social welfare • Running costs
CAPITAL EXPENDITURE
Once-off long-term projects.
Building schools, hospitals, roads, social housing
Top Tip: Never write “paying wages” alone. Name the worker: “paying doctors’ wages” for Health, “paying teachers’ wages” for Education.
Examples by Government Department
🏫 Education & Youth
Current: Paying teachers’ wages
Capital: Building new schools
🏥 Health
Current: Paying doctors’ and nurses’ wages
Capital: Building hospitals
🚙 Transport
Current: Paying bus drivers’ wages
Capital: Building new roads or rail lines
🏠 Housing
Current: Funding homelessness services
Capital: Building social housing
🏅 Culture & Sport
Current: Funding athletes to train
Capital: Building a velodrome
👥 Social Protection
Current: Paying Jobseeker’s Allowance and State pensions
Capital: Developing a new welfare IT system
📚 Tap any term to see its definition.
The National Budget
National Budget
The government’s annual financial plan showing how much money it expects to collect (revenue) and how it plans to spend it (expenditure) in the year ahead. Presented by the Minister for Finance each year.
+
Surplus Budget
Occurs when government revenue is greater than government expenditure.
The Minister for Finance may repay national debt, increase public spending, reduce taxes, or save for future emergencies.
The Minister for Finance may repay national debt, increase public spending, reduce taxes, or save for future emergencies.
+
Deficit Budget
Occurs when government expenditure is greater than government revenue.
The Minister for Finance may need to borrow money (repaid with interest), raise taxes, or reduce spending.
The Minister for Finance may need to borrow money (repaid with interest), raise taxes, or reduce spending.
+
Balanced Budget
Occurs when government revenue equals government expenditure.
No additional borrowing is needed and services continue at current levels.
No additional borrowing is needed and services continue at current levels.
+
Government Revenue
Government Revenue
All income collected by the government. Two main types: current revenue (collected regularly each year) and capital revenue (once-off or non-recurring).
+
Current Revenue
Income the government collects on a recurring basis each year. It funds day-to-day public services.
Examples: PAYE, VAT, Corporation Tax, fees and charges (such as passport fees), and profits from state companies such as ESB and An Post.
Examples: PAYE, VAT, Corporation Tax, fees and charges (such as passport fees), and profits from state companies such as ESB and An Post.
+
Capital Revenue
Once-off or non-recurring income, often used for large projects.
Examples: EU grants (do not have to be repaid), EU loans (must be repaid with interest), sale of state assets, long-term borrowing such as government bonds.
Examples: EU grants (do not have to be repaid), EU loans (must be repaid with interest), sale of state assets, long-term borrowing such as government bonds.
+
Government Expenditure
Government Expenditure
All money spent by the government to provide public services and run the country. Two main types: current expenditure (day-to-day) and capital expenditure (long-term).
+
Current Expenditure
Recurring spending to keep public services running each year.
Examples: paying teachers’ wages, paying doctors’ and nurses’ wages, social welfare payments, heating and lighting in schools and hospitals.
Examples: paying teachers’ wages, paying doctors’ and nurses’ wages, social welfare payments, heating and lighting in schools and hospitals.
+
Capital Expenditure
Once-off spending on long-term projects that benefit people for many years.
Examples: building schools, hospitals, roads, and social housing.
Examples: building schools, hospitals, roads, and social housing.
+
Remember: For a grant: “does not have to be repaid.” For a loan: “must be repaid with interest.” For expenditure: name the specific worker, not just “wages.”
🎦 Chapter 30 video walkthroughs. Watch these alongside your textbook to reinforce the key ideas.
Government Revenue & Expenditure — Full Walkthrough
Covers the National Budget, current and capital revenue, current and capital expenditure, and surplus and deficit.
⚡ Work through the pile. Tap a card to flip it. Tick it when you know it — it moves to your Done pile. Cross it and it goes back to the bottom.
🅻 Test yourself. Use the arrows to move through questions or skip and come back. The dots track your progress.
📄 Past paper questions with model answers. Tap “Show Answer” on each part.
Key Skills Tested in This Chapter
① Explain sources of government revenue other than tax
② Identify current and capital expenditure by government department
③ Read a graph or pie chart to identify the highest spending sector
④ Calculate a National Budget and state surplus or deficit (with € sign)
⑤ Advise the Minister for Finance on action to take after a surplus or deficit
② Identify current and capital expenditure by government department
③ Read a graph or pie chart to identify the highest spending sector
④ Calculate a National Budget and state surplus or deficit (with € sign)
⑤ Advise the Minister for Finance on action to take after a surplus or deficit
📄 2019 Sample Paper — Question 7
The chart below shows Irish Government spending by category for 2018. Total Expenditure: €72.5 billion.
(a) In which category does the government spend most?
Social Protection (€20bn)
(b) State one capital and one current expenditure under the health category.
Capital: Building the new children’s hospital
Current: Paying doctors’ wages
Current: Paying doctors’ wages
Top Tip: “Paying wages” alone scores no marks. Write “paying doctors’ wages” or “paying nurses’ wages” for Health.
📄 2019 Paper — Question 13 6m
State one example of expenditure in the government departments below:
| Government Department | Example of Expenditure |
|---|---|
| Health | Building hospitals (capital) / Paying doctors’ wages (current) |
| Education and Skills | Building new schools (capital) / Paying teachers’ wages (current) |
| Transport, Tourism and Sport | Building new roads (capital) / Promoting Ireland abroad (current) |
Top Tip: Link pay to a specific job. “Teachers’ pay” scores marks. “Pay” alone does not.
📄 2023 Paper — Question 18(c) 21m total
The figures below were presented on budget day for a country as projections for the following year.
(i) Using the information from the pie chart, prepare the National Budget for the following year. 11m
| National Budget for the Year | € Billions | € Billions |
|---|---|---|
| Income | 105 | |
| Health | 24 | |
| Transport | 4 | |
| Other | 17 | |
| Social Protection | 23 | |
| Education | 10 | |
| Justice | 3 | |
| Debt Servicing & EU Payments | 14 | |
| Total Expenditure | 95 | |
| Answer | €10bn Surplus |
Top Tip: Read the chart title. This one says “Planned Expenditure” — every figure shown is expenditure and they must all be added together.
(ii) Identify the sector the government plans to spend most money on. 4m
Health (€24bn)
(iii) In the event of a surplus, advise the Minister for Finance what to do with the surplus money. 2m
Any one of:
• Repay some of the national debt
• Increase public spending (e.g. build more hospitals)
• Reduce taxes to increase disposable income
• Save for future emergencies
• Repay some of the national debt
• Increase public spending (e.g. build more hospitals)
• Reduce taxes to increase disposable income
• Save for future emergencies
(iv) Identify one example of capital expenditure and one example of current expenditure for the Department of Education. 4m
Capital: Building schools or colleges
Current: Paying teachers’, lecturers’ or SNAs’ wages
Current: Paying teachers’, lecturers’ or SNAs’ wages
📄 2025 Paper — Question 16(c)(ii) 6m
Taxation is the main source of income in Ireland’s National Budget. Apart from taxation, explain two other sources of income for the Irish Government.
1. EU Grants — money received from the EU for a specific purpose that does not have to be repaid.
2. Sale of State Assets — the government sells land, buildings, or state companies to raise once-off income.
Also acceptable: EU Loans (must be repaid with interest) • Fees and fines (e.g. passport fees)
2. Sale of State Assets — the government sells land, buildings, or state companies to raise once-off income.
Also acceptable: EU Loans (must be repaid with interest) • Fees and fines (e.g. passport fees)
Top Tip: For any grant: “does not have to be repaid.” For any loan: “must be repaid with interest.”
