Budget surplus: a positive or negative figure?

protection click fraud

budget surplus is a concept completely opposite deficit.That is, when summed up the country's economic performance over the past period, there has been a significant part of the excess revenue over expenditure.This situation certainly pleases, as suddenly emerged residue allows you to expand the reserve fund of the state, or to realize important social program.

In today's economy, most countries of the world are familiar with the concept of scarcity.Indeed, in a severe crisis, the budget surplus is almost never occur.However, we can not say that the surplus balance in all cases is only positive.In theory, there are accounting firm rule, which states that the results of active and passive parts of any balance must be identical.A deviation in either direction from equality indicates misallocation of funds of the state budget.

worth noting the point of origin of the surplus.It can be folded under the influence of natural factors or created artificially, while the surplus state.budget only reflected in the balance sheet, but in practice there is a different picture.Artificial impact on the national budget gives rise to distortion of the local its forms, since they are directly linked.

budget surplus - it is the balance of payments of the country in which a public authority is a certain amount of financial resources.Proper planning of temporary free funds can provide a significant improvement in living standards and improving living standards in the country.The government is trying to keep under control any changes in conditions in the financial market in order to prevent surges in the balance of supply and demand, or to stop the monopoly of individual companies and even industries.And for such manipulations state simply must have its own resource base.

budget is considered one of the most important documents of the country, reflecting the main directions of the monetary policy and the means of achieving them.If the government realizes that the available funds are not sufficient for the implementation of socio-economic programs, the budget surplus is generated and introduced strict economy.In this case, the State has an impact on every industry to increase the cash flow to the treasury.Achieving this goal at the expense of the main levers:

  • taxation system.
  • Loans to the state by the central bank.
  • maximum decrease in the expenditure side.

course, first and foremost the government to tighten fiscal policy by raising interest rates on certain types of activity or differentiation by income level of the population.When the increase of tax payments is not enough, we have to resort to saving and cost-cutting going on to provide public bodies - to apply the method of sequestration.And as a last resort, you can allocate credit to the government.The National Bank provides loans for a fee, even the state, but under the minimum percentage.Last lever is not effective enough, as the funds are subject to obligatory return, which could drive the country into debt.

Equally important is playing, what kind of a budget surplus.For example, in the Russian practice for several years in a row there is a budget surplus Republican, but because of a significant shortage of local and regional budgets and the consolidated balance sheet total is obtained with a negative balance.