A surplus budget is a precursor to the good financial health of a country. When incomes from the budget exceed the expenses of the government, the budget is called a surplus budget. The budgetary deficit is usually shown in terms of the percentage of GDP. Similarly, when the capital disbursements of the government go above the capital receipts, a capital account deficit occurs. The deficit happens when current expenses exceed the incomes generated via standard operations of the government. In a deficit budget, the expenses are more than the revenues collected. In other words, a government budget will be balanced when the economy of the nation is in a balanced position. Balanced budgets are aimed to provide the necessary cushion to the economy when there is no special need for extra inputs or when there is no need for any extra investment for the growth of the economy. This means that the government neither earns nor spends anything extra. In a balanced budget, the receipts and expenditures are equal. Types of Government Budget Balanced Budget The government budget aims to look after public enterprises, such as railways, energy services, etc. The government uses fiscal tools, such as taxes, public expenditure, and subsidies to do this. The intention is to stop the concentration of wealth among a select few. Income redistribution aims at distributing income equally among the citizens of the country. For this, governments may impose taxes and provide subsidies wherever necessary. The idea is to reduce the inequality of income and the growth of the citizens. The government budget aims to fill the gap in wealth creation and access to economic opportunities equally for every citizen. The budget aims to boost GDP and provide social welfare to the citizens. The government aims to promote the growth of the economy through various means by the budget. It is one of the major objectives of preparing a budget. Examples include the distribution of electricity and water in rural areas, offering healthcare and sanitation services, etc. The government budget aims to meet the resource allocation needs of the country, especially in sectors and areas where there is less or no private participation. The budget also aims to create employment and reduce poverty. Some of these requirements include food, clothing, housing, healthcare, and education. It aims to offer basic requirements to every citizen. The government budget is aimed to increase the social good of the country.
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