The estimated Government current budget for 2015 is as follows: Government Current Income €45,255 m Government Current Expenditure €48,985 m (i) Calculate the current budget deficit - Leaving Cert Economics - Question 6 - 2015

1. Reduce Current Government Expenditure: The government can cut spending in areas such as social welfare or public services. This would immediately lower the total amount spent, resulting in a smaller deficit.

2. Increase Current Government Income: The government could increase income by raising taxes or improving tax collection efficiency. For instance, the implementation of measures to reduce tax evasion could enhance overall tax revenue.

Example of Government Current Income: Direct tax revenue Example of Government Current Expenditure: Salaries of public service employees

USC stands for Universal Social Charge.

Income tax is a direct tax as it is imposed directly on individuals' income. It is calculated based on the income earned, making it a personal tax.

A reduction in the rate of income tax may initially lead to a decrease in government income. However, if this leads to increased disposable income for individuals, it could stimulate spending, potentially increasing overall tax revenue and reducing the budget deficit in the longer term.

Reducing the income tax rate may lead to an increase in disposable income, allowing individuals to spend more. This increased consumption can boost demand for goods and services, encouraging businesses to hire more employees, thus increasing overall employment in Ireland.

If disposable incomes increase due to lower income tax, individuals may be less likely to emigrate. This is because higher disposable income can provide more opportunities for employment and a better quality of life, reducing the motive to seek opportunities abroad.

One measure that could be taken is to introduce plain packaging. This may limit brand appeal and reduce the attractiveness of smoking to potential new users.

1. Greater Disposable Incomes: If individuals smoke fewer cigarettes, they will save money that can be spent on other essential goods or services, increasing their disposable income.

2. Healthier Lifestyle: Reducing cigarette consumption can lead to better health outcomes, decreasing spending on healthcare and medical services associated with smoking-related illnesses.

1. Greater Productivity/Reduction in Absenteeism: With fewer people smoking, there will likely be a reduction in health-related absences from work, leading to higher overall productivity in the workforce.

2. Reduced Pressure on Public Health Services: Lower smoking rates will reduce the demand for healthcare services related to smoking-related illnesses, alleviating pressure on public health resources and lowering healthcare costs for society.