The budget of the countries of the world is a monetary fund that is used by their governments to finance their own activities. It is a kind of nationwide estimate of income and expenses. The state budget interacts with many parts of the country's financial system. It is with the help of money that assistance is provided to promising and key industries.
Basic concepts
The budget of the countries of the world has a number of features. Its structure depends on a number of factors, an important place among them is the administrative-territorial structure of the state. The budget is usually drawn up by the government and approved by parliament or other supreme legislative bodies. It should be noted that the concept itself appeared with the advent of the state. However, the form of the document approved by the highest legislative body, he acquired only with the advent of the bourgeoisie. Treasury is usually called a financial department that is responsible for budget execution, that is, storage and use of its funds.
This document describes the income and expenses of the state for the year. The period from January 1 to December 31 is often taken into account. Thus, it reflects the monetary relations that arise between the government and individuals and legal entities regarding the redistribution of national income. It includes two articles. Revenues are generated by:
- Taxes. They are charged by central and local governments.
- Non-tax deductions. For example, income from foreign economic activity or leasing of property that is in state ownership.
- Seigniorage. That is, profits from the issue of money.
- Income from trust funds and privatization.
In the Russian Federation, about 84% of budget revenues come from tax revenues.
Costs are those funds that are allocated by the government to finance the goals and objectives that it defines. From a macroeconomic point of view, they are divided into the following groups:
- State procurements.
- Transfers.
- Public debt service.
Costs can be divided according to their purpose:
- For political purposes. Here you can highlight the costs of ensuring security and the maintenance of the state apparatus.
- For economic purposes. These are the costs of maintaining the functioning of the public sector and subsidizing the private.
- For social purposes. These are expenses for the payment of pensions, allowances and scholarships, as well as for education, healthcare, science, and environmental protection.
In historical context
The concept of budget in the world appeared in the 18th century. The very idea of accounting for state revenue and expenditure belongs to Sir Robert Walpole. At that time, he was Chancellor of the Treasury and sought to restore public confidence in the system after the collapse of the company of the South Seas in 1720. In 1733, Walpole announced its plans to introduce an excise tax on the consumption of many goods, including wine and tobacco. The tax burden on the small nobility, on the contrary, was supposed to be reduced. This caused a wave of public outrage. A brochure was published titled “Budget Open, or Response to Pamphlet”. Its author was William Pulten. It was he who first used the word "budget" in connection with the fiscal policy of the state. Walpole's initiative has been canceled. However, by the middle of the 18th century, accounting for government revenues and expenditures had become common practice in developed countries.
Budget types
Usually they are distinguished by three. The most common budget deficit. This means that government expenditures exceed revenues. Allocate a deficit of income, financial and primary. A budget surplus arises when revenues exceed expenses. This is a rather rare situation. The best option is a balanced budget. It implies that revenues are equal to expenses. It is to this state of affairs that all countries of the world are striving.
Appointment
The budget of the countries of the world has four main functions:
- Distribution. This means that the budget is formed by centralized funds and is used at various levels of government. The distribution of income contributes to the balanced development of regions.
- Stimulating. The state with the help of the budget regulates the country's economy. It can purposefully strengthen or inhibit the growth rate of production in individual regions.
- Social. The budget accumulates funds that can be used to develop health care, education, culture and support for vulnerable groups of the population.
- Control. The state monitors the receipt and use of budget funds.
Principles of Compilation
It is believed that any budget should be complete, unified, real and public. Confidence in the government, as well as the balance and speed of development of the country's economy, depend on compliance with these principles. By completeness is meant that all revenues and expenses must be included in the budget. All unaccounted for contributes to the shadowing of the economy and increase the uneven development. The unity of the budget implies the existence of a single document in which all income and expenses are classified in a certain way. Therefore, they can be compared and compared. The reality or, as this principle is also called, the veracity of the budget indicates that all the articles in this document should be reasonable and correct. For this, it is necessary to have it publicly discussed by the government and approved by parliament. It is with the latter that such an important principle as publicity is connected. It also includes the need for periodic reports on budget performance by various authorities.
Treasury as a special financial authority
This department is engaged in cash execution of the budget. In different countries, it may have different names. However, the Treasury performs a similar set of functions everywhere. Among them:
- Ensuring accounting of all budget revenues.
- Confirmation of government spending commitments.
- Making payments on behalf of the recipients of money from the state.
Budgets of the world in 2017
This indicator can be considered in different ways. For example, bearing in mind the largest budgets of the countries of the world, one can take into account income, the size of the deficit (surplus). We first consider the countries of the world in terms of revenue. World budget revenues range from 3.4 trillion US dollars in the United States to 1 million in the Pitcher Islands. The top five for this indicator included, in addition to the United States, such states as China, Japan, Germany and France. They are leaders in terms of spending. But much more interesting is the rating of the budgets of the countries of the world by deficit (surplus). In the first place is Germany. Her budget surplus is $ 23 billion. The top five also included countries such as Norway, Macau, Switzerland and Iceland. If we consider the percentage of surplus, then the leaders are several other states. These are Macau, Tuvalu, Iceland, Palau and Turks and Caicos Islands.
