BUDGET BASICS1.Why do we need budgets anyway?2.Why is the government doing this?3.What’s the future looking like?
WHY DO WE NEED BUDGETS?Budgets help us plan.Governments have to plan to provide services like healthcare,education, social protection, justice, agricultureGovernments ‘make’ their money from different types of taxes.These plans are educated guesses.
BORROWING• Government Revenue - Taxes = Public Borrowing.
Composition of national debt, €million at end of 2012 National Debt (€m)Government Bonds 87,853EU/IMF Programme Funding 55,898Other Medium and Long-Term 773DebtState Savings Schemes 13,478Short-Term Debt 3,480Cash and other Financial Assets -23,850
SO WHAT?• Government has to reduce borrowing by spending less, and earning more.• This means your taxes will go up, and some services will be cut.• EG: PRSI went up in the last budget, Child Beneﬁt was cut.
QUESTION:• Should everyone with a child get the same child beneﬁt?
COMING DOWN THE LINE• Property taxes. Why?• Water taxes. Why?• Carbon taxes. Why?
QUESTION• From the point of view of the homeowner, would you rather pay stamp duty or a property tax?• From the point of view of the government, would you rather receive payment in stamp duty or in the property tax?