# Funding the budget

If the Debit Tax seems to confiscate so little money from individuals - then how will the Federal Budget be funded? To answer this question - let's reference Reserve Bank and Federal Government documents.

From the Federal Government From the Federal Government Budget for 2011-12, we will use 4 figures:

• Actual total government expenses of \$377 739 million.
• Actual income of \$25 480 million from Excise Duty.
• Actual income of \$7 105 million from Customs Duty.
• Actual income of \$21 330 million from Other Sources.

From the Reserve Bank

From the RBA - 4 numbers are calculated from 3 spreadsheets. Each number is calculated by adding the monthly figures from July 2011 to June 2012. For example, the Real-time Gross Settlement value is calculated here. All of the results are:

• Actual annual Cheque Payments of \$1 242 billion - from here (column G).
• Actual annual Direct Entry Payments of \$13 264.5 billion - from here (column M).
• Actual annual Real-time Gross Settlement payments of \$41 320 billion - from here (column M).
• Actual annual ATM withdrawals of \$150.9 billion - from here (column E).

Adding up these 4 numbers gives a total of \$55 976.5 billion.

Putting the numbers together

Now let's put all these numbers together into the "ASP Federal Budget 2011-12". Remember that with the ASP, the federal government will have 2 primary sources of revenue:

• The Debit Tax (at a flat rate of 1%).
• Customs and Excise duties.

Using the figures from the federal government and the numbers we calculated from the RBA spreadsheets - we sum them up to give us the following:

• Debit Tax revenue (1% of \$55 976.5 billion) = \$559.7 billion
• Actual revenue from Excise Duty = \$25.4 billion
• Actual revenue from Customs Duty = \$7.1 billion
• Actual revenue from Other Sources = \$21.3 billion

The actual calculations are given below. The budget displays that the Debit Tax will generate a healthy surplus of \$235.9 billion - over and above the actual government expenditure of \$377.7 billion. Money
Reserve Bank
Tax

### Videos - Tax

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