Budget
Budget 2017: Here's everything you need to know about budgets around the world
The Budget presents a government's proposed revenues and spending for a financial year that is often passed by the legislature, approved by the President and presented by the Finance Minister of the nation. It is also known as the annual financial statement of the country.
It estimates the anticipated government revenues and government expenditures for the financial year.
The practice of presenting budgets to Parliament was initiated by Sir Robert Walpole in his position as United Kingdom Chancellor of the Exchequer, in an attempt to restore the confidence of public after the chaos unleashed by the collapse of the South Sea Bubble in 1720.
The institution of the annual account of the budget evolved into practice during the first half of the 18th century and had become well established by the 1760s; George Grenville introduced the Stamp Act in his 1764 budget speech to the House of Commons of Great Britain.
Elements
The two basic elements of any budget are the revenues and expenses. In the case of the government, revenues are derived primarily from taxes. Government expenses include spending on current goods and services, which economists call government consumption; government investment expenditures such as infrastructure investment or research expenditure; and transfer payments like unemployment or retirement benefits.
Special consideration
Government budgets have economic, political and technical basis. Unlike a pure economic budget, they are not entirely designed to allocate scarce resources for the best economic use. They also have a political basis wherein different interests push and pull in an attempt to obtain benefits and avoid burdens. The technical element is the forecast of the likely levels of revenues and expenses.
Classification
Budget classification is a corner stone for budget management system. It provides a framework for both decision making and accountability
The Budget presents a government's proposed revenues and spending for a financial year that is often passed by the legislature, approved by the President and presented by the Finance Minister of the nation. It is also known as the annual financial statement of the country.
It estimates the anticipated government revenues and government expenditures for the financial year.
The practice of presenting budgets to Parliament was initiated by Sir Robert Walpole in his position as United Kingdom Chancellor of the Exchequer, in an attempt to restore the confidence of public after the chaos unleashed by the collapse of the South Sea Bubble in 1720.
The institution of the annual account of the budget evolved into practice during the first half of the 18th century and had become well established by the 1760s; George Grenville introduced the Stamp Act in his 1764 budget speech to the House of Commons of Great Britain.
Elements
The two basic elements of any budget are the revenues and expenses. In the case of the government, revenues are derived primarily from taxes. Government expenses include spending on current goods and services, which economists call government consumption; government investment expenditures such as infrastructure investment or research expenditure; and transfer payments like unemployment or retirement benefits.
Special consideration
Government budgets have economic, political and technical basis. Unlike a pure economic budget, they are not entirely designed to allocate scarce resources for the best economic use. They also have a political basis wherein different interests push and pull in an attempt to obtain benefits and avoid burdens. The technical element is the forecast of the likely levels of revenues and expenses.
Classification
Budget classification is a corner stone for budget management system. It provides a framework for both decision making and accountability
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