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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

find the 15th term of the geometric sequince whose first is 18 and last term of 387
Jerwin Reply
The given of f(x=x-2. then what is the value of this f(3) 5f(x+1)
virgelyn Reply
hmm well what is the answer
Abhi
how do they get the third part x = (32)5/4
kinnecy Reply
can someone help me with some logarithmic and exponential equations.
Jeffrey Reply
sure. what is your question?
ninjadapaul
20/(×-6^2)
Salomon
okay, so you have 6 raised to the power of 2. what is that part of your answer
ninjadapaul
I don't understand what the A with approx sign and the boxed x mean
ninjadapaul
it think it's written 20/(X-6)^2 so it's 20 divided by X-6 squared
Salomon
I'm not sure why it wrote it the other way
Salomon
I got X =-6
Salomon
ok. so take the square root of both sides, now you have plus or minus the square root of 20= x-6
ninjadapaul
oops. ignore that.
ninjadapaul
so you not have an equal sign anywhere in the original equation?
ninjadapaul
hmm
Abhi
is it a question of log
Abhi
🤔.
Abhi
Commplementary angles
Idrissa Reply
hello
Sherica
im all ears I need to learn
Sherica
right! what he said ⤴⤴⤴
Tamia
hii
Uday
what is a good calculator for all algebra; would a Casio fx 260 work with all algebra equations? please name the cheapest, thanks.
Kevin Reply
a perfect square v²+2v+_
Dearan Reply
kkk nice
Abdirahman Reply
algebra 2 Inequalities:If equation 2 = 0 it is an open set?
Kim Reply
or infinite solutions?
Kim
The answer is neither. The function, 2 = 0 cannot exist. Hence, the function is undefined.
Al
y=10×
Embra Reply
if |A| not equal to 0 and order of A is n prove that adj (adj A = |A|
Nancy Reply
rolling four fair dice and getting an even number an all four dice
ramon Reply
Kristine 2*2*2=8
Bridget Reply
Differences Between Laspeyres and Paasche Indices
Emedobi Reply
No. 7x -4y is simplified from 4x + (3y + 3x) -7y
Mary Reply
how do you translate this in Algebraic Expressions
linda Reply
Need to simplify the expresin. 3/7 (x+y)-1/7 (x-1)=
Crystal Reply
. After 3 months on a diet, Lisa had lost 12% of her original weight. She lost 21 pounds. What was Lisa's original weight?
Chris Reply
what's the easiest and fastest way to the synthesize AgNP?
Damian Reply
China
Cied
types of nano material
abeetha Reply
I start with an easy one. carbon nanotubes woven into a long filament like a string
Porter
many many of nanotubes
Porter
what is the k.e before it land
Yasmin
what is the function of carbon nanotubes?
Cesar
I'm interested in nanotube
Uday
what is nanomaterials​ and their applications of sensors.
Ramkumar Reply
what is nano technology
Sravani Reply
what is system testing?
AMJAD
preparation of nanomaterial
Victor Reply
Yes, Nanotechnology has a very fast field of applications and their is always something new to do with it...
Himanshu Reply
good afternoon madam
AMJAD
what is system testing
AMJAD
what is the application of nanotechnology?
Stotaw
In this morden time nanotechnology used in many field . 1-Electronics-manufacturad IC ,RAM,MRAM,solar panel etc 2-Helth and Medical-Nanomedicine,Drug Dilivery for cancer treatment etc 3- Atomobile -MEMS, Coating on car etc. and may other field for details you can check at Google
Azam
anybody can imagine what will be happen after 100 years from now in nano tech world
Prasenjit
after 100 year this will be not nanotechnology maybe this technology name will be change . maybe aftet 100 year . we work on electron lable practically about its properties and behaviour by the different instruments
Azam
name doesn't matter , whatever it will be change... I'm taking about effect on circumstances of the microscopic world
Prasenjit
how hard could it be to apply nanotechnology against viral infections such HIV or Ebola?
Damian
silver nanoparticles could handle the job?
Damian
not now but maybe in future only AgNP maybe any other nanomaterials
Azam
Hello
Uday
I'm interested in Nanotube
Uday
this technology will not going on for the long time , so I'm thinking about femtotechnology 10^-15
Prasenjit
can nanotechnology change the direction of the face of the world
Prasenjit Reply
At high concentrations (>0.01 M), the relation between absorptivity coefficient and absorbance is no longer linear. This is due to the electrostatic interactions between the quantum dots in close proximity. If the concentration of the solution is high, another effect that is seen is the scattering of light from the large number of quantum dots. This assumption only works at low concentrations of the analyte. Presence of stray light.
Ali Reply
the Beer law works very well for dilute solutions but fails for very high concentrations. why?
bamidele Reply
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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