Knowra Government budget Government budget A government budget is a plan for raising revenue and spending public funds over a specified period. It sets fiscal priorities and estimates how public services and obligations will be financed.
Taxation : The compulsory levying of charges by public authorities to fund government and influence economic activity. Taxes are a major source of revenue in most government budgets.
Budget process : The sequence of preparing, approving, executing, and auditing a government budget. It describes how a proposed plan becomes authorized public spending.
Public goods : Goods that are non-excludable and non-rivalrous, such as national defense or clean air. Government budgets often finance goods markets may undersupply.
Balanced budget : A budget in which planned or actual revenue equals planned or actual expenditure over a specified period. It is the no-deficit, no-surplus condition against which other budget outcomes are compared.
Public expenditure : Government spending on goods, services, transfers, and investment. Its allocation turns budget priorities into funded programs and public services.
Appropriation : A legal authorization to spend public money for specified purposes. Appropriations establish the spending authority contained in a budget.
Social spending : Public expenditure on programs such as health care, education, pensions, and income support. These allocations show how budgets distribute resources across social needs.
Budget surplus : A period’s government revenue in excess of its spending. A surplus reverses the shortfall between revenue and expenditure.
Budget deficit : A period’s government spending in excess of its revenue, excluding borrowing. A deficit shows when planned spending exceeds the revenue collected.
Performance-based budgeting : A budgeting approach that links funding decisions to program objectives and performance information. It uses expected results to inform how budget resources are allocated.
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