Fiscal policy of any state provides a balanced budget at all levels.By itself, the budget includes two parts, one of which shall include all items of income and in the second - spending.If the number exceeds the number of revenue expenditure, such a state is called the budget deficit.However, it may be observed and the budget surplus - the predominance of a profitable part of the expenditure.
should be said that the best option is, of course, a situation in which income and expenses are equal.After all, deficit, budget surplus and act as a deviation from the norm.However, to balance income and expenditure of funds is very difficult.Therefore, it would be desirable to stop in more detail on the prevalence of cost.
If the country has a budget deficit is primarily financed by the budget of the operating costs.
budget deficit is of several types:
1. Active - appears with the direct excess spending over revenue receipts.
2. Passive - occurs as a consequence of lowering tax rates and reducing the revenue side (it is not associated with an increase in costs).
3. The structural budget deficit occurs when the state goes to increase his conscious.In order to produce during the recession to stimulate economic activity and aggregate demand, government taxes can be reduced or a special decision to increase the level of employment (for example, funding for job creation).
4. Tsiklichisky - almost independent of fiscal policy.It is characterized by a general decline in production occurring at the stage of the crisis is the result of the cyclical development of the economy.
5. Short-term - due to the predominance of income over expenditure in one financial year.It reflects the current changes in the general state of the economy, which in drafting the budget were not included.Among the reasons for its occurrence is most common:
- experience of macroeconomic forecasting at the authorities is insufficient.
- Bad account possible changes in certain circumstances: the fall in export prices, reduced output, a possible reduction in demand for manufactured products, reducing its competitiveness, a sharp increase in public spending associated with inflation.
6. Long-term - is the widening gap in the budget for several years between revenue and expenditure.Its origin is due to reasons that are sustainable.In most countries this:
- Increasing social burden on the budget.
- Junk demographic situation of the country, which is associated with an aging population.
- Changes in tax legislation related to its liberalization.
- Increasing the country's external debt.
- artificially low prices (through the introduction of temporary or additional taxes, the sale of state assets, deferred payments of salaries to employees of state organizations).
- Unaccounted in the public sector amortization.
- high inflation.
7. The real budget deficit - the difference between the nominal deficit and public debt interest, which is multiplied by the rate of inflation.
8. Operations - general budget deficit net of interest payments inflationary side.
In any country the main strategic goal - the achievement of a balanced budget, but, despite this, sometimes the budget deficit can act as an important tool in economic policy in macroeconomic regulation.That is why his clever use allows the state to solve a number of economic and social problems.At the same time the main thing that the deficit was not long.
