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One of the economic aims of the Irish Government at present is to decrease government current expenditure - Leaving Cert Economics - Question 6 (a) - 2012
Question 6 (a)
One of the economic aims of the Irish Government at present is to decrease government current expenditure. Discuss four other economic aims of the Government and use... show full transcript
Worked Solution & Example Answer:One of the economic aims of the Irish Government at present is to decrease government current expenditure - Leaving Cert Economics - Question 6 (a) - 2012
Step 1
Reduce unemployment
Answer
One of the essential aims of the Irish Government is to reduce unemployment. The current unemployment rate stands at 14.8%. To achieve this, the government is pursuing policies that enhance competitiveness, boost exports, and create jobs. For instance, investing in sectors like technology and renewable energy can lead to the creation of new job opportunities, thereby decreasing unemployment levels.
Step 2
Achieve economic growth
Answer
Achieving sustainable economic growth is another priority for the government. Growth rates for the Irish economy are anticipated to be around 0.5% for 2012. The government is looking to stimulate this growth by encouraging both domestic and foreign investment. Policies such as tax incentives for businesses and investment in infrastructure are crucial to fostering an environment conducive to growth.
Step 3
Broaden the tax base
Answer
The Irish Government aims to broaden the tax base to increase revenue. Recently, proposals have been made to introduce new taxes, including a septic tank inspection charge, to enhance the state’s financial position. By efficiently broadening the tax base, the government can reduce its reliance on existing taxpayers and ensure a more equitable distribution of the tax burden.
Step 4
Restore consumer confidence
Answer
Restoring consumer confidence in the economy is essential for promoting spending. The government aims to create a stable economic environment that encourages individuals and businesses to spend. This can be achieved through transparency in fiscal policies and measures that demonstrate the government’s commitment to maintaining financial stability, which, in turn, can lead to increased consumer spending and stimulate economic growth.