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Economic and management sciences

Grade 9

The economic cycle

Module 7

The national budget

Assessment standard 1.5:

The national budget

  • The national budget is a document that is drawn up annually by the Minister of Finance, and in which a forecast is made of the government’s expected income and expenditure for the coming year. The national budget is regarded as the planned framework within which the state must operate, and therefore it has the following two main objectives:
  • the announcement of expected government expenditure and tax income; and
  • an indication of government strategy to keep the economy on a specific course.

In planning the national budget the first important step is that the different state departments must compile their own budgets in which an indication is given of their needs / expenditure. When all the departments have submitted their budgets, these are processed in order to obtain a complete view of all state expenditure.

  • GOVERNMENT EXPENDITURE can be distinguished in the following four groups of functions that are fulfilled by the state and for which funds are needed (also called the FUNCTIONAL CLASSIFICATION):
  • GENERAL OR COLLECTIVE SERVICES are services such as defence, maintenance of law and order and general state administration.
  • COMMUNITY SERVICES are services that are provided where a great number of people live together (for example services such as road construction, sanitation and refuse removal).
  • SOCIAL SERVICES such as health care, education and housing that are covered mainly by taxes.
  • ECONOMIC SERVICES such as expenditure on direct production and research.

Hereafter planning is done to find the necessary funds to cover the expenses. These funds are mainly generated by levying TAXES such as DIRECT TAXES (for instance personal income tax that is levied on an individual’s income) and INDIRECT TAXES (for instance customs and excise tax, and value added tax or VAT).

  • A brief summary of the annual budget for the fiscal year 1999-2000 is given below:
ANNUAL BUDGET (1999 – 2000) ALLOCATED AMOUNT PERCENTAGE OF TOTAL EXPENDITURE(%)
Total income: 190,3
Total expenditure:
Transport and communication 8,2 3,7
Interest (on loans) 48,5 22,1
Salaries (government service staff) 86,5 51,0
Education 48,5 22,1
Health 24,0 10,9
Community security and welfare services 19,8 9,0
Housing and community development 9,6 4,5
Police 15,3 7,0
Defence 35,5 5,5
Prison services (Correctional services) 5,4 2,7
Justice (administration of justice) 2,8 1,3
Agriculture, Forestry and Fisheries 3,6 1,6
Deficit 25,1

Activity 1: national budget

Refer to the table above and answer the following questions:

  1. Which expenditure is expected to be the greatest?
  2. Which expected expenditure is the greatest: on Defence or on Education?

Activity 2: national budget

The last column indicates the percentage of the total expenditure for each department.

Use the information to draw a bar graph in order to indicate how much is spent on each category. Insert the graph on a separate sheet.

Activity 3: ranking order of expenditure

Refer to the graph and indicate in order from the highest to the lowest expenditure how the expenses (in order of importance) are prioritised.

Activity 4: assessment of ranking

Do the group members agree with the priority list as presented in the table above?

Decide how your group will spend the available funds according to your own priority list and then redesign the column graph according to your division.

Assessment

Learning Outcomes (LUs)

LO 1

the economic cycle

The learner will be able to demonstrate knowledge and understanding of the economic cycle within the context of “the economic problem.”

Assessment Standards(ASs)

We know this when the learner:

1.5 explains the different flows of money, factors of production, goods and services in the economic cycle within the South African economy;

1.6 discusses the role of the foreign sector in the economic cycle;

1.7 illustrates by means of a graph and discusses how demand and supply influence prices;

1.8 critically assesses the influence and actions (strikes and stayaways) of trade unions in general and during the apartheid era on:

  • the South African economy;
  • political, economic and social transformation;
  • labour issues;

1.9 discusses the effect of the national budget on the economy (e.g. taxation and expenditure on education, social welfare, health and security.)

Memorandum

ACTIVITY1: National budget

SELF:

Answers related to the table:

Salaries of civil service employees.

Education 22,15% compared to the 5,5% of Defence.

ACTIVITY 2: Graphic representation of budget figures

Draw a column graph to show the percentage of the contribution to the budget with regard to each kind of expenditure.

ACTIVITY 3: Ranking of expenditure

SELF:

Evaluate the learners’ priorities.

ACTIVITY 4: Evaluation of ranking

GROUP:

Evaluate the group’s classification and their priorities

Questions & Answers

how can chip be made from sand
Eke Reply
is this allso about nanoscale material
Almas
are nano particles real
Missy Reply
yeah
Joseph
Hello, if I study Physics teacher in bachelor, can I study Nanotechnology in master?
Lale Reply
no can't
Lohitha
where is the latest information on a no technology how can I find it
William
currently
William
where we get a research paper on Nano chemistry....?
Maira Reply
nanopartical of organic/inorganic / physical chemistry , pdf / thesis / review
Ali
what are the products of Nano chemistry?
Maira Reply
There are lots of products of nano chemistry... Like nano coatings.....carbon fiber.. And lots of others..
learn
Even nanotechnology is pretty much all about chemistry... Its the chemistry on quantum or atomic level
learn
Google
da
no nanotechnology is also a part of physics and maths it requires angle formulas and some pressure regarding concepts
Bhagvanji
hey
Giriraj
Preparation and Applications of Nanomaterial for Drug Delivery
Hafiz Reply
revolt
da
Application of nanotechnology in medicine
has a lot of application modern world
Kamaluddeen
yes
narayan
what is variations in raman spectra for nanomaterials
Jyoti Reply
ya I also want to know the raman spectra
Bhagvanji
I only see partial conversation and what's the question here!
Crow Reply
what about nanotechnology for water purification
RAW Reply
please someone correct me if I'm wrong but I think one can use nanoparticles, specially silver nanoparticles for water treatment.
Damian
yes that's correct
Professor
I think
Professor
Nasa has use it in the 60's, copper as water purification in the moon travel.
Alexandre
nanocopper obvius
Alexandre
what is the stm
Brian Reply
is there industrial application of fullrenes. What is the method to prepare fullrene on large scale.?
Rafiq
industrial application...? mmm I think on the medical side as drug carrier, but you should go deeper on your research, I may be wrong
Damian
How we are making nano material?
LITNING Reply
what is a peer
LITNING Reply
What is meant by 'nano scale'?
LITNING Reply
What is STMs full form?
LITNING
scanning tunneling microscope
Sahil
how nano science is used for hydrophobicity
Santosh
Do u think that Graphene and Fullrene fiber can be used to make Air Plane body structure the lightest and strongest. Rafiq
Rafiq
what is differents between GO and RGO?
Mahi
what is simplest way to understand the applications of nano robots used to detect the cancer affected cell of human body.? How this robot is carried to required site of body cell.? what will be the carrier material and how can be detected that correct delivery of drug is done Rafiq
Rafiq
if virus is killing to make ARTIFICIAL DNA OF GRAPHENE FOR KILLED THE VIRUS .THIS IS OUR ASSUMPTION
Anam
analytical skills graphene is prepared to kill any type viruses .
Anam
Any one who tell me about Preparation and application of Nanomaterial for drug Delivery
Hafiz
what is Nano technology ?
Bob Reply
write examples of Nano molecule?
Bob
The nanotechnology is as new science, to scale nanometric
brayan
nanotechnology is the study, desing, synthesis, manipulation and application of materials and functional systems through control of matter at nanoscale
Damian
how did you get the value of 2000N.What calculations are needed to arrive at it
Smarajit Reply
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Source:  OpenStax, Economic and management sciences grade 9. OpenStax CNX. Sep 15, 2009 Download for free at http://cnx.org/content/col11074/1.1
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