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 Government Expenditure: The government could cut spending in various areas, such as reducing funding for public services, infrastructure, or welfare programs.

2. Increase Government Income: The government could seek to increase revenue by expanding the tax base, increasing tax rates, or improving tax collection processes.

Example of Government Current Income: Tax Revenue (e.g., Income Tax).

Example of Government Current Expenditure: Salaries of public servants (e.g., payments to teachers and healthcare workers).

USC stands for Universal Social Charge.

Income tax is a direct tax because it is levied directly on individuals' income and reflects their ability to pay.

A possible economic effect of reducing the income tax rate includes:

1. The government’s current budget deficit: Lower income tax rates may result in decreased tax revenue, leading to a potential increase in the budget deficit if expenditures remain unchanged.

2. The level of employment in Ireland: A reduction in income tax can increase disposable income, potentially boosting consumer spending. This increased demand for goods and services can lead businesses to hire more employees to meet the demand.

One measure that could be taken to reduce cigarette consumption is to introduce plain packaging. This would eliminate brand logos and colors, making cigarettes less appealing to consumers.

1. Greater Disposable Incomes: Individuals who smoke less will save money previously spent on cigarettes, leaving them with more disposable income for other essentials or leisure activities.

2. Healthier Lifestyle: Reducing cigarette consumption can lead to improved health, decreasing healthcare costs related to smoking-related illnesses and allowing individuals to spend less on medical care.

1. Reduced Healthcare Costs: A decrease in cigarette consumption can lead to lower rates of smoking-related illnesses, reducing the overall burden on the healthcare system and saving public healthcare costs.

2. Improved Public Health: Fewer smokers in society can result in improved public health outcomes, including lower incidences of diseases such as lung cancer and respiratory illnesses, which can enhance the quality of life for the entire community.