Quite often we hear such a thing as a "balanced budget", but not everyone knows what it is.In this article you will find answers to many of your questions related to this term.
As you know, the budget is divided into two parts, which are interconnected - the revenue and expenditure.When they are equal, expenditure commitments do not exceed the revenue, the budget can be called balanced.Income in this case is the amount of the alleged over time funds, including borrowing from other countries, organizations, and so on. D.
balanced budget - is key to the prosperity of the country as a whole and each individual in particular.The slightest imbalance can cause a number of negative consequences: disruption in the financing of public institutions, problems with repayment of foreign debts, arrears in the economy, the decline of the national currency, the failure of municipal and state orders, and more.
If budgeting was to exceed the revenue part of the estimated cost, then this is considered surplus.At first glance it may seem that this is a positive phenomenon.But in fact, adhering to this concept, the efficiency of use of budgetary funds is reduced, thereby increasing the burden on the economy, thus exerting pressure on business, slowing its development and leading to bankruptcy.Excessive mobilization profitable part often leads to negative consequences.
If in the process of drafting the budget expenditure obligations exceed the expected revenue, it is considered deficient.This basically happens when the country's economy is far behind the needs and demands of society.As a result, the state begins to experience economic decline.Because of the issue of unsecured money increases inflation.Quite popular in our time, methods to conduct a balanced budget (higher taxes, utility payments, etc.), lead to the fact that a significant part of the business goes into the shadows, increasing the shadow capital.As for the social side of the adoption of the budget deficit, the cost of health and social security of citizens are greatly reduced, reduced payments for education and programs to combat unemployment.The overall level of the population falls.
balance the budget, depending on the timing may be short-term (1 year), medium (from 3 to 5 years) or long term (perspective on the decade).This division helps carry out monitoring and to draw conclusions about the effectiveness of robots government.
In order to balance the budget in its development should involve all levels of the power structure.The main methods used by budgeting, can be divided into two groups.The first - a balanced budget is achieved during its formation.That is the direction of the target limited resources in those sectors where they are most needed, adequate, clear allocation of funds between budgets of all levels, balance budgets at different levels of austerity.Seeking out new sources of income, reduction of the public sector, in extreme cases, budget borrowing.All this must be calculated and written before the budget is approved and will come into force.
second group - those methods are resorted to in the process of implementation of the budget.These include strict compliance with the limits approved in the budget, a clear definition of the terms for the expenditure side, operating mechanism, with which you can block the costs.
