4.3a Balancing The Budget Exercise

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Balancing the budget START Year 1

Revenue sources $000 $000

Income tax 6000 8000


Corporation tax 1000 2000
Nat. Insurance contributions 2000 0
VAT 500 500
Excise duties 300 300
Import tariffs 200 200
10000
Expenditure $000 $000

Health 2000 1000


Education 2000 1000
Defence 1500 2000
Pensions and other social security 1500 1000
Transport infrastructure 1000 3000
Law and order 1000 2000
Debt repayments 1000 1000
10000

Budget surplus/deficit 0

Popularity Points 70
Year 1 Year 2

Change? $000 Change?


Inc/Dec? Inc/Dec?
6000
1500
2000
800
300
400
11000 11000
$000

1500
3000
1000
1000
3500
0
1000
11000 11000

0 0
Year 3 Year 4

$000 Change? $000


Inc/Dec?
8000 6000
2000 2000
2000 1600
1000 500
300 200
100 200
13400 10500
$000 $000

2000 2000
1000 1000
3000 1500
1500 3000
2000 1000
2900 1000
1000 1000
13400 10500

0 0
Year 5 Year 6

Change? $000 Change? $000


Inc/Dec? Inc/Dec?
5000 8000
1500 4000
1500 2000
400 300
150 200
300 500
8850
$000 $000

1000 2000
1500 1000
1000 5000
2650 1000
1200 3000
500 2000
1000 1000
8850

0
Year 6 Year 7

Change? $000 Change?


Inc/Dec? Inc/Dec?
8000
4000
2000
200
200
400
15000 14800
$000

4000
1500
3000
2300
2000
1000
1000
15000 14800

0 0

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