Essay On Government Budgeting

Budgeting can be defined as the process of estimating revenue and expenses during a specific period of time. A national budget is the budget of a country. The government need to spends money on things like national defense, infrastructure, grants for research, education, and the arts, and social programs such as Social Security and Medicare which the government gets the money from taxes and fees. It is much like any budget in that it estimates necessary spending against necessary income, only on a much larger scale.

The national budget has many various departments to finance. How well a country fares economically depends largely on its ability to manage its budget wisely. The budget impacts the benefits of aids and subsidy an individuals and groups receive from the government which will be depend on the taxation collected on a nation's citizens and in terms of the Government officials are paid out of the budget, and the nation's military defenses are supported. Many government agencies operate from of the national

These objectives are the direct result of government’s economic, social and political policies. First of all, the purposes of the national budget are reallocation of resources. Through the budgetary policy, Government aims to reallocate resources in accordance with the economic and social priorities of the country. Government can influence allocation of resources through tax concessions or subsidies and producing goods and services directly to the public. To encourage investment, government can give tax concession or subsidies to the producers. For example, Government discourages the production of harmful consumption goods such as liquor and cigarettes through heavy taxes and encourages the use of merit good by providing subsidies. Such example can be seen in 2016 United Kingdom budget which the tobacco duty was increased by 2% and hand rolling tobacco duty was increased by