Tiếng anh chuyên ngành tài chính unit 6: PUBLIC FINANCE

UNIT 6: PUBLIC FINANCE

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GROUP 3

Nguyễn Thùy Dương
Bùi Thị Ánh Nguyệt
Nông Thị Mai Chi
Bùi Thị Thu Hà
Hà Thị Vân Anh

Public Finance

 /ˈpʌblɪk/ 

The study of how the government (or public)

Public finance adapts and applies the

(n)

/ˈfaɪnæns/

sector pays for (or finances) expenditures through

fundamental microeconomic theory of markets

taxes and borrowing

to the public sector and government activity.

Connected with national government rather than

New federal regulations have been introduced.

Federal (adj)

/ˈfedərəl/

the local government of an individual state

budget

/ˈbʌdʒɪt/

an official statement by the government of a

There is more money in the Budget for the

country’s income from taxes, etc. and how it will

Ministry of Education than there is for schools.

be spent.

tax

/tæks/ 

A compulsory contribution to state revenue, levied

A carbon tax is a tax on the use of energy.

by the government on workers' income and
business profits.

Insufficient
(adj)

/ˌɪnsəˈfɪʃnt/

 of a quantity not able to fulfill a need or
requirement

His salary is insufficient to meet his needs.


Customs duties (n)

/ˈkʌstəmz/

A government tax on imports or exports.

/ˈdjuːtis/

Excise taxes (n)

They sign a treaty to lower custom duties on trade
between their countries.

/ˈeksaɪz/

Tax placed on the sale or manufacture of a

Governments impose excise taxes on inelastic

/tæksis/

commodity,typically a luxury item

goods such as cigarettes,gasoline,alcohol

(alcohol..).

Mature (v),(adj)

/məˈtʃʊə(r)/

(v)To become due for payment or

My insurance policy matures when i reach 65.

repayment.
(adj)Due or payable.
Face value (n)

Surplus (n),(adj)

/feɪs/

The value printed or written on the face,

The face value of their stock was $1000,although

/ˈvæljuː/

as of a bill or bond.

few of them ever sent a message.

 /ˈsɜːpləs/

An amount or a quantity in excess of what

Canada produces a surplus of raw materials.

is needed.

Creditor (n)

/ˈkredɪtə(r)/

A person or commercial enterprise to

whom money is owed.

The property will be sold to pay off their creditors.


Deficit (n)

Debt (n)

/ˈdefɪsɪt/

/det/

The amount by which an actual sum is lower than

They are ready to cut the budget deficit for the

that expected or required.

next fiscal year.

A sum of money that somebody owes

He had run up credit card debts of thousands of

dollars.

Bond (n)

/bɒnd/

 A certificate issued by a government or a public

In the second case bond prices are low and falling

company promising to repay borrowed money at a

as they would be in inflation.

fixed rate of interest at a specified time.

Treasury

 /ˈtreʒəri/

(n)

Fund (n)

/fʌnd/

The government department that controls public

President Bill Clinton appointed Bentsen as

money.

Secretary of the Treasury in 1992.

A sum of money saved or made available for a

However, owing to financial crunch, funds would

particular purpose.

be raised with private partnership.


Where does the money come from?

Federal Budget 101
The federal government raise trillions of dollars in tax revenue each year, though there are many
different kinds of taxes. Some taxes fund specific government programs, while other taxes fund

the government in general. When all taxes for a given year are insufficient to cover all of the
government’s  expenses - which is often the case – the U.S Treasury borrows money to make up
the difference.
Total federal tax revenues in fiscal year 2014 are projected to be $3 trillion. These revenues come
from three major sources: income taxes paid by individuals, accounting for 46 percent of all tax
revenues; payroll taxes paid  jointly by workers and employers, accounting for 34 percent; and
corporate income taxes paid by businesses, making up 11 percent. There are also a handful of
other types of taxes like customs duties and excise taxes that make up much smaller portions of
federal revenue. Customs duties are taxes on import , paid by the importer, while excise taxes are
taxes levied on specific goods, like gasoline. This pie chart below shows how much each of  these
revenue sources are expected to bring in during fiscal year 2014.
Once they are paid into the Treasury, income taxes and corporate taxes are designated as federal

funds, while payroll taxes become trust funds. Federal funds are general revenues, meaning
Congress and the President can decide to spend them on just about anything when they conduct
the annual appropriations process. But trust funds can be used only to pay for very specific
programs. The vast majority of trust fund revenues pay for Social Security and Medicare.


Total federal tax revenues in fiscal year 2014 are projected to be $3

2. How much is the Federal government

trillion. These revenues come from three major sources: income taxes

going to collect in tax revenues in fiscal year

paid by individuals, accounting for 46 percent of all tax revenues; payroll

2014?

taxes paid  jointly by workers and employers, accounting for 34 percent;

➢ The Federal government is going to collect

and corporate income taxes paid by businesses, making up 11 percent.

$3 trillion in tax revenues in fiscal year 2014.

There are also a handful of other types of taxes like customs duties and

3. What type of taxes contributes the largest

excise taxes that make up much smaller portions of federal revenue.

proportion of tax revenues?

Customs duties are taxes on import , paid by the importer, white excise

➢ Individual income taxes contributes the

taxes are taxes levied on specific goods, like gasoline. This pie chart

largest proportion,accounting for 46% of all

below shows how much each of  these revenue sources are expected to

tax revenues.

bring in during fiscal year 2014

Once they are paid into the Treasury, income taxes

4. What are federal funds? For what purpose are these

and corporate taxes are designated as federal funds,

funds used?

while payroll taxes become trust funds. Federal

➢ Federal funds are general revenues coming from income

funds are general revenues, meaning Congress and

taxes and corporate taxes,which are used to spend on the

the President can decide to spend them on just about

annual appropriations process.

anything

when

they

conduct

the

annual

appropriations process. But trust funds can be used
only to pay for very specific programs. The vast

6. What are trust funds?For what purpose are trust funds

majority of trust fund revenues pay for Social

used?

Security and Medicare.

➢Trust funds are revenues coming from payroll taxes,
which can be used to pay for very specific government
programs such as Social Security and Medicare.

Federal Budget 101

Ngân sách Liên bang 101

The federal government raise trillions of dollars in tax revenue each

Chính phủ Liên bang thu được hàng nghìn tỷ đô la thuế mỗi năm

year, though there are many different kinds of taxes. Some taxes fund

thông qua rất nhiều loại thuế khác nhau. Một số thuế gây quỹ cho

specific government

programs, while other taxes fund the

những chương trình trọng điểm của chính  phủ, trong khi một số

government in general. When all taxes for a given year are

khác phục vụ cho chính phủ nói chung. Khi toàn bộ thuế thu được

insufficient to cover all of the government’s  expenses --which is often

trong 1 năm nhất định không đủ để bù đắp cho tất cả chi tiêu của

the case – the U.S Treasury borrows money to make up the

chính phủ- vốn là điều xảy ra thường xuyên- kho bạc Mỹ để cải thiện

difference.

tình hình chỉ còn cách đi vay tiền.

Total federal tax revenues in fiscal year 2014 are projected to be $3

Tổng thuế liên bang thu được trong năm tài khóa 2014 được dự tính

trillion. These revenues come from three major sources: income taxes

là 3 nghìn tỷ đôla. Nguồn thu này đến từ 3 nguồn chủ yếu là: Thuế

paid by individuals, accounting for 46 percent of all tax revenues;

thu nhập cá nhân,chiếm 46% tổng số thuế thu được; thuế lương

payroll taxes paid  jointly by workers and employers, accounting for

bổng được đóng góp bởi người lao động và chủ doanh nghiệp,

34 percent; and corporate income taxes paid by businesses, making

chiếm 34%; và thuế TNDN do các DN đóng,chiếm 11%.

up 11 percent.


There are also a handful of other types of taxes like customs duties and
excise taxes that make up much smaller portions of federal revenue.

Customs duties are taxes on import , paid by the importer, white excise
taxes are taxes levied on specific goods, like gasoline. This pie chart below
shows how much each of  these revenue sources are expected to bring in
during fiscal year 2014.
Once they are paid into the Treasury, income taxes and corporate taxes are
designated as federal funds, while payroll taxes become trust funds.
Federal funds are general revenues, meaning Congress and the president
can decide to spend them on just about anything when they conduct the
annual appropriations process. But trust funds can be used only to pay for
very specific program. The vast majority of trust fund revenues pay for
Social Security and Medicare.

Cũng có 1 số ít các loại thuế khác như thuế quan và thuế tiêu thụ đặc biệt đóng
góp 1 phần nhỏ hơn vào nguồn thu ngân sách liên bang.Thuế quan là thuế đánh
vào hàng hóa nhập khẩu và do hãng nhập khẩu đóng trong khi thuế tiêu thụ đặc
biệt lại đánh vào những hàng hóa đặc biệt nhất định như xăng dầu. Biểu đồ tròn
dưới đây biểu diễn kì vọng về tổng mỗi nguồn thu trên trong năm tài khóa 2014.
Khi Kho bạc hoàn thành nghĩa vụ thu thuế, thuế thu nhập cá nhân và thuế thu
nhập doanh nghiệp sẽ được coi là quỹ tiền tệ của liên bang trong khi thuế lương
trở thành quỹ ủy thác tài sản. Quỹ Liên bang là nguồn thu tổng hợp, nghĩa là Quốc
hội và Tổng thống có thể quyết định việc chi tiêu chúng vào mục nào khi thực hiện
quá trình phân bổ hàng năm. Nhưng quỹ ủy thác chỉ có thể được dùng cho những
chương trình hết sức đặc biệt. Phần lớn nguồn thu quỹ ủy thác dùng cho chương
trình trật tự an toàn xã hội và bảo hiểm sức khỏe cho người già trên 65 tuổi.

Borrowing
In most year, the federal government spends more money than it takes in
from tax revenues. To make up the difference, the Treasury borrows money
by issuing bonds. Anyone can buy Treasury bonds, and, in effect, lend
money to the Treasury by doing so. According to the Congressional
Budget office, the federal government is expected to brrow $616 billion in
fiscal 2014 . Borrwing constitutes a major source of revenue for the federal
government. Down the road, however, the treasury must pay back the
money it has borrowed, and pay interest as well.
1.What does the U.S.Treasury do when revenue from taxes is not enough

to cover all of the government’s expenditures?
➢When revenue from taxes is not enough to cover all of the government’s
expenditures, U.S Treasury borrows money by issuing bonds.


Vay mượn
Hầu hết các năm, chính phủ Liên bang chi nhiều tiền
Borrowing

hơn tiền thu được từ nguồn thuế. Để bù đắp phần còn

In most year, the federal government spends more money than it takes

lại, kho bạc mượn tiền bằng cách phát hành phiếu. Bất

in from tax revenues. To make up the difference, the Treasury borrows

kỳ ai cũng có thể mua  trái phiếu kho bạc và tiền thực

money by issuing bonds. Anyone can buy Treasury bonds, and, in

tế, kho bạc vay là làm như vậy. Theo văn phòng ngân

effect, lend money to the Treasury by doing so. According to the

sách Quốc hội ; chính phủ Liên bang được kỳ vọng sẽ

Congressional Budget office, the federal government is expected to

vay được 616 tỷ đô la trong năm tài khóa 2014. Khoản

brrow $616 billion in fiscal 2014 . Borrowing constitutes a major

vay này tạo ra nguồn thu chủ yếu cho chính phủ liên

source of revenue for the federal government. Down the road,

bang. Tuy nhiên trong tương lai, kho bạc phải trả lại số

however, the treasury must pay back the money it has borrowed, and

tiền đã vay này, và trả cả lãi suất.

pay interest as well.


How Does the Ferderal Government Borrow?
To finance the debt, the U.S. Treasury sells bonds and other types of securities.(Securities is a term for a variety of financial

assets). Anyone can buy a bond or other Treasury security directly from the Treasury through its website, treasurydirect fov, or
from banks or brokers. When a person buys a Treasury bond, she effectively loans money to the federal government in exchange
for repayment with interest at a later date.
Most Treasury bonds give the investor-the person who buys the bond-a pre-detemined fixed interest rate. Genetally, if you buy a
bond, the price you pay is less than what the bond is worth. That means you hold onto the bond until it mature; a bond is mature
on the date at which it is worth its face value. For example, you may buy a $100bond today and pay ony $90. Then you hold it
for five year, at which time it is worth $100. You also can sell the bond before it matures.
8. By what way does the Treasury borrow money?
➢The Treasury borrows money by selling bonds and other types of securities.


How Does the Ferderal Government Borrow?

To finance the debt, the U.S. Treasury sells bonds and other types of securities.
(Securities is a term for a variety of financial assets). Anyone can buy a bond
or other Treasury security directly from the Treasury through its website,
treasurydirect fov, or from banks or brokers. When a person buys a Treasury
bond, she effectively loans money to the federal government in exchange for
repayment with interest at a later date.
Most Treasury bonds give the investor-the person who buys the bond-a predetemined fixed interest rate. Genetally, if you buy a bond, the price you pay
is less than what the bond is worth. That means you hold onto the bond until
it mature; a bond is mature on the date at which it is worth its face value. For
example, you may buy a $100bond today and pay ony $90. Then you hold it
for five year, at which time it is worth $100. You also can sell the bond before
it matures.

Làm thế nào chính phủ liên bang có thể vay ?
Để huy động vốn vay , kho bạc Mỹ bán trái phiếu và các loại chứng khoán nợ khác
(chứng khoán nợ là một loạt các tài sản tài chính). Ai cũng có thể mua trực tiếp trái
phiếu hoặc các loại chứng khoán nợ khác từ kho bạc trên website: treasurydirect.gov,
hoặc từ phía các ngân hàng, hoặc nhà môi giới. Khi một người mua trái phiếu kho
bạc, người đó đã cho chính phủ liên bang vay một khoản tiền với điều kiện chính phủ
thực hiện nghĩa vụ trả gốc lẫn lãi sau này.
Nếu hết trái phiếu kho bạc cho nhà đầu tư – đối tượng mua trái phiếu – biết trước lãi
suất cố định. Nói chung là, nếu bạn mua trái phiếu, số tiền chúng ta bỏ ra sẽ ít hơn giá
trị thật của trái phiếu. Điều đó có nghĩa là chúng ta giữ trái phiếu đến kì hạn thanh
toán, khi mà trái phiếu đạt đến giá trị thật. Ví dụ, bạn bỏ ra $90 để mua trái phiếu giá

$100. Và sau đó bạn giữ  trong 5 năm, khi đó giá của trái phiếu sẽ là  $100. Bạn cũng
có thể thực hiện giao dịch trái phiếu đó ra bên ngoài trước kì hạn .


If the Federal Government Has Lots of Debt, Who Does It Owe Money
To?
The federal debt is the sum of the debt held the public- that’s the money borrowed from
regular people like you and from foreign countries-plus the debt held by fedral accounts.
Debt held by federal accounts is the amount of money that the Treasury has borrowed
from itself. That may sound funny, but recall from above that trust funds are federal tax
revenues that can only be used for cerain programs. When trust fund accounts run a
surplus, the Treasury takes the surplus and uses it to pay for other kinds of federal

spending. But that means the Treasury must pay that borrowed money black to the trust
fund at a later date. That borrowed money is called “debt held by fendral accounts;”
that’s the money the Treasury effectively lends to itself. One-third of the federal debt is
dedt held by federal accounts, while two-thirds of the federal debt is held by the public.
9. Who does the Federal Government owe money to?
➢ Federal Government owes money to all of its creditors in general public, which
includes American as well as foreign individuals, the government of foreign countries.
And federal government borrows money from itself.


If the Federal Government Has Lots of Debt, Who
Does It Owe Money To?

Nếu Chính phủ liên Bang  phải gồng gánh nhiều khoản

The federal debt is the sum of the debt held the public- that’s the money

nợ, vậy chủ nợ là đối tượng nào?

borrowed from regular people like you and from foreign countries-plus the debt

Nợ củ liên bang là tổng các khoản nợ bên ngoài ( ngoài Chính Phủ) – Là các

held by fedral accounts. Debt held by federal accounts is the amount of money

khoản vạy từ người dân hoặc là nợ nước ngoài- cộng với các khoản nợ trong tài

that the Treasury has borrowed from itself. That may sound funny, but recall
from above that trust funds are federal tax revenues that can only be used for
cerain programs. When trust fund accounts run a surplus, the Treasury takes the
surplus and uses it to pay for other kinds of federal spending. But that means the
Treasury must pay that borrowed money black to the trust fund at a later date.
That borrowed money is called “ debt held by fendral accounts;” that’s the
money the Treasury effectively lends to itself. One-third of the federal debt is dedt
held by federal accounts, while two-thirds of the federal debt is held by the
public.

khoản củ Liên Bang. Các khaonr nợ đó là tiền mà kho bạc tự ứng ra dưới dạng
khoản vay. Nghe có vẻ kỳ lạ, nhưng nhắc lại  quỹ ủy thác là khoản thu thuế Liên
Bang chỉ được sử dụng trong 1 số chương trình nhất định. Khi quỹ ủy thác dư
ra một phần, Kho bạc sẽ sử dụng khoản dư để trang trải các khoản chi khác của
mình.  Nhưng điều đó đồng nghĩ với nghĩ vụ hoàn trả sau này đối với kho bạc.
Khoản vay này được gọi là “nợ trong tài khoản Liên Bang” là khoản mà tự kho
bạc ứng ra dưới dạng vay. Khoản này chiếm 1/3 nợ liên bang trong khi số còn
lại thuộc về nợ bên ngoài.


Debt Held by the Public

Debt held by the public is the total amount the goverment owes to all of its creditors in
general public. That includes Americans as well as foreign individuals and the government
of foreign countries.
Approximately half – the largest portion – of debt held by the public is held internationally
by foreign investors and central banks of other countries who buy our Treasury bonds as
investments. In 2010, these countries included China, which held the most ($1.1 trillion),
followed by Japan ($800 billion), Middle Eastern countries ($173 billion), Russia ($168
billion), Brazil ($164 billion) and Taiwan ($152 billion).
The next largest portion is held by domestic investors, which includes regular Americans as
well as institutions like private banks. ( A bank may invest some of its own assets in
Treasury bonds.) This portion constitutes over a third of the federal debt. The U.S Federal
Reserve Bank and state and local government hold the remainder of federal debt. ( The

Federal Reserve’s share of the federal debt is not counted as debt held by federal accounts,
because the Federal Reserve is considered independent of the federal government. The
Federal Reserve buys and sells Treasury bonds as part of its work control the money supply
and set interest rates in U.S . economy.)


Debt Held by the Public
Debt held by the public is the total amount the goverment owes to all of
its creditors in general public. That includes Americans as well as foreign

Approximately half – the largest portion – of debt held by the public is
held internationally by foreign investors and central banks of other

countries who buy our Treasury bonds as investments. In 2010, these
countries included China, which held the most ($1.1 trillion), followed by
Japan ($800 billion), Middle Eastern countries ($173 billion), Russia

The next largest portion is held by domestic investors, which includes
regular Americans as well as institutions like private banks. ( A bank may
invest some of its own assets in Treasury bonds.) This portion constitutes
third

of

the

federal

chính phủ các nuớc khác.
Xấp xỉ một nửa  khoản nợ ngoài này được tạo ra bởi chủ đầu tư nước ngoài và
những ngân hàng trung ương của các nuớc thông qua việc đầu tư mua trái phiếu kho
bạc của nước ta. Năm 2010, những nuớc chủ nợ này bao gồm Trung Quốc,  chiếm tỉ
lệ cao nhất  (1.1 nghìn tỉ $), theo sau là Nhật Bản (800 tỷ $), các nuớc  Trung Đông
(173 tỷ $), Nga (168 tỷ $), Brazil (164 tỷ $) và Đài Loan (152 tỷ $).

($168 billion), Brazil ($164 billion) and Taiwan ($152 billion).

a

Nợ bên ngoài là tổng số nợ mà chính phủ có  nghĩa vụ hòan trả đối với những chủ nợ
trong xã hội . Bao gồm công dân Mỹ cũng như những chủ thể cá nhân ở nuớc ngoài và

individuals and the government of foreign countries.

over

NỢ BÊN NGOÀI

debt.

Nhân tố chiếm tỉ lệ lớn thứ hai xếp sau các chủ nợ nuớc ngoài đó là các nhà đầu tư
trong nứớc bao gồm công dân Mỹ ,các cơ quan mà ngân hàng thương mại là một ví
dụ. ( Một ngân hàng có thể đầu tư một phần tài sản của mình vào mua trái phiếu kho
bạc. Nhóm này chiếm hơn 1/3 tổng số nợ liên bang.


The U.S Federal Reserve Bank and state and local

Ngân hàng dự trữ liên bang , chính phủ và chính

government hold the remainder of federal debt.

quyền địa phương nắm giữ phần nợ còn lại của nợ

( The Federal Reserve’s share of the federal debt is

liên bang.( Phần nợ của ngân hàng dự trữ liên bang

not counted as debt held by federal accounts,

không đuợc tính vào phần nợ của liên bang vì nó

because

considered

hòan tòan độc lập với chính quyền liên bang. Ngân

independent of the federal government. The Federal

hnàg thực hiện giao dịch trái  phiếu kho bạc như một

Reserve buys and sells Treasury bonds as part of its

trong những cách để điều tiết cung tiền và tỷ lệ lãi

work control the money supply and set interest

suất trong nền kinh tế Mỹ.

the

Federal

rates in U.S . economy.)

Reserve

is


SUMMARY
_Total federal tax revenues of the U.S are projected up to $3 trillion which come from 3 main sources : +
Income taxes from individuals
+Corporate income taxes from businesses become federal funds
+Payroll taxes from workers and employers becomes trust funds +other (customs duties, excise taxes,..)
_To deal with the problem of overspending , the federal government borrow money by issuing bonds or
other types of securities with the obligation to pay back at later date (including interest)
_There are debt held by public and debt held by federal account.

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