Budgeting

In market economies the budget is the proposed and later the authorized statement of revenues and expenditures for a period, normally a fiscal year. The government budget may show the planned or authorized expenditure of central government alone, or may incorporate also expenditures and revenues of regional and local governments.

The budget is the key instrument for expression and execution of the government's economic policy.

Government budgets have a wide implication for the national economy. There are various practical approaches to budgeting, including the administrative budget, which emphasizes the expenditures of ongoing government operations; the capital budget, which gives separate treatment to public works projects and their special financing requirements; the cash budget, which simplifies budgetary procedures, etc.

In the United States the federal budget deals mainly with expenditure programmes, and revenues are covered only briefly. The size of the budget deficit or surplus is regarded asvery important. An important aspect of the budgetary process is a great influence of the Congress. The US budget is submitted to the congress by the president at the beginning of each year (in January as a rule), eight or nine months before the ensuing fiscal year, which comes in October the 1^st. President determines main guidelines of the budgetary and financial policy. Then the budget is considered by several sub-committees of the House of Representatives and the Senate.

In Great Britain the preparation of the budget is the function of the Treasury, which is headed by the Chancellor of the Exchequer.

The emphasis of the British Budget is on taxation and the state of the economy.

The Budget is the Government's main economic statement of the year. It is announced by the Chancellor of the Exchequer who reviews the nation's economic performance and describes the Government's economic objectives and the policies it intends to follow in order to achieve them.

Words уоu may need:

authorized – дозволений, офіційно прийнятий

incorporate – включати

implication – значення

budgeting – складання бюджету

administrative budget адміністративний фінансовий кошторис

capital budget – бюджет капіталовкладень

Cash budget – бюджет наявних коштів

Chancellor of the Exchequer – Міністр фінансів (у Великобританії)

ž Tests

I. Choose the correct answer:

1.A state budget is:

a) a sphere of economic relations, where takes place the financial resource’s buying and selling;

b) a financial plan of expenditures and revenues of the state;

c) a profit from the export and import operations.

2.The objects of the financial relations are:

a) profits, taxes, securities;

b) gross national product and national income;

c) money incomes;

d) state, enterprises, citizens.

3.The subjects of the financial relations are:

a) national income and gross national product;

b) state, enterprises, citizens;

c) incomes from the state loans;

d) taxes, securities, currency.

4.Finance is:

a) a practice of manipulating and managing money;

b) a capital involved in a project;

c) a loan of money for a particular purpose;

d) all are right.

5.The common assignment of the finance is:

a) to form and use money funds of the state with the help of special forms of cost motion;

b) money relations over mobilization of the financial resources in the control of the state;

c) money relations which are connected with the use of the state funds for the national needs.

II. Match terms in the column A with a correct definition in the column B:

III. Match what statements are true and what are false. Results write to the table:

1. Finance is an economic instrument of distribution and redistribution of the gross internal product and national income.
2. The essence of finance is shown in its functions.
3. One of the most important sign of the finance is the equality in rights of the state and the economic entities.
4. Money is the material base of the finance.
5. Finance and money have identical substance.
6. Finance is the expression of the distribution sphere of the economic relations.
7. The structure of the state budget practically didn’t change over many centuries.
8. The role of finance is growing on the macrolevel on the modern stage of the development.

Table

True
False

IV. Fill the tables:

Дата добавления: 2014-11-29