Budget of the countries of the world: rating

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 national budget for income and expenditure. The state budget interacts with many parts of the financial system of the country. It is with the help of money from him that assistance is provided to prospective and key industries.

Basic concepts

The budget of the countries of the world differs by 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, but approved by the parliament or other supreme legislative body. 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 coming to power of the bourgeoisie. The Treasury is called the financial department, which deals with the execution of the budget, that is, the storage and use of its funds.

This document describes the revenues and expenditures of the state for the year. Often the period from January 1 to December 31 is taken into consideration. Thus, it reflects the monetary relations that the government has with individuals and legal entities regarding the redistribution of national income. It includes two articles. Revenues are formed by:

• Taxes. They are collected by central and local authorities.
• Non-tax deductions. For example, income from foreign economic activity or rental of property that is in state ownership.
• Senorazha. That is, the profit from the issue of money.
• Income from trust funds and privatization.

In Russia, about 84% of budget revenues come from tax revenues.

Expenses are those funds that are directed by the government to finance the goals and tasks defined by it. From the macroeconomic point of view, they are divided into the following groups:

• State procurements.
• Transfers.
• Public debt service.

The costs can be divided according to their purpose:

• For political purposes. Here it is possible to allocate expenses for maintenance of safety and the maintenance of the state device.
• For economic purposes. This is the cost of maintaining the public sector and subsidizing the private sector.
• For social purposes. This is the cost of paying pensions, benefits and scholarships, as well as education, health, science, and environmental protection.

In the historical context

The concept of the budget in the countries of the world appeared in the 18th century. The very idea of accounting for government revenues and expenditures belongs to Sir Robert Walpole. At that time he was the chancellor of the treasury and sought to restore public confidence in the system after the collapse of the company of the Southern Seas in 1720. In 1733, Walpole announced his plans to impose an excise on the consumption of a variety of goods, including wine and tobacco. On the contrary, it was intended to reduce the tax burden on the small-landed gentry. This caused a wave of public outrage. A brochure entitled "The budget was opened, or the answer to a pamphlet" was published. 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 was abolished. However, by the mid-18th century, the accounting of government revenues and expenditures had become common practice in developed countries.

Types of budget

Usually they are singled out by three. The most common is the budget deficit. This means that government spending exceeds revenues. Define a deficit of income, financial and primary. Surplus of the budget arises when revenues exceed expenditures. This is a rare situation. The most optimal option is a balanced budget. It implies that receipts are equal to expenditures. It is to this state of affairs that all countries of the world seek.

Appointment

The budget of the countries of the world has four main functions:

• Distributive. This means that the budget is formed through centralized funds and is used at various levels of government. The distribution of income contributes to the balanced development of regions.
• Stimulating. The state regulates the economy of the country with the help of the budget. It can purposefully strengthen or restrain the growth rates of production in certain regions.
• Social. The budget accumulates funds that can be used for the development of health, education, culture and support for the unprotected strata of the population.
• Control. The state monitors the receipt and use of budgetary funds.

Principles of compilation

It is believed that any budget should be complete, single, real and public. The observance of these principles depends on the credibility of the government, as well as the balance and speed of development of the country's economy. By completeness, it means that all receipts and expenses must be included in the budget. All unaccounted for contributes to the shadowing of the economy and an increase in the uneven development. Unity of the budget implies the existence of a single document, in which all incomes and expenses are classified in a certain way. Therefore, they can be compared and compared. Reality, or, as they call this principle, the veracity of the budget indicates that all the articles of this document should be valid and correct. For this, its public discussion by the government and approval by the parliament is necessary. It is with the latter that an important principle, such as glasnost, is connected. It also includes the need for periodic budget performance reports by various bodies.

Treasury as a special financial body

This department deals with cash execution of the budget. In different countries, it can have different names. However, everywhere the treasury performs a similar set of functions. Among them:

• Ensuring that all budget revenues are recorded.
• Confirmation of the government's commitment to spending.
• 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, having in mind the largest budgets of the countries of the world, you can take into account the income, the size of the deficit (surplus). Let us first consider the countries of the world in terms of revenues. The budget revenues of the countries of the world range from 3.4 trillion US dollars from the United States to 1 million from the Pitker Islands. In the first five, this indicator included, in addition to the United States, countries such as China, Japan, Germany and France. They are the leaders in spending. But the rating of the budgets of the countries of the world on the deficit (surplus) is much more interesting. In the first place - Germany. The surplus of its budget is 23 billion US dollars. The top five also included countries such as Norway, Macau, Switzerland and Iceland. If we look at the percentage of the surplus, then the leaders are a few other states. These are Macau, Tuvalu, Iceland, Palau and the Turks and Caicos Islands.

Military budgets of the countries of the world

This indicator is calculated by two organizations. According to the Stockholm International Peace Research Institute, the military budget of the countries of the world in 2017 exceeded 1.686 billion dollars. This is 2.2% of the world's gross domestic product. In the first place in terms of spending on this area, the United States. In 2017, they spent 611.2 billion dollars or 3.3% of GDP. On the second - China. But his expenditures are almost three times less than that of the US - only $ 215.7 billion or 1.9% of GDP. Russia was also included in the top three. Russia spent on the military sphere 69.2 billion dollars or 5.3% of GDP. In the top five, this indicator also includes countries such as Saudi Arabia and India. According to the International Institute for Strategic Studies, in the first place for military spending is also the United States, and on the second - China. But then there are countries like Saudi Arabia, Russia, Britain and India. The figures themselves differ slightly, but insignificantly.

The budget is one of the most important instruments of state regulation. It is necessary in order to manage the economy, to plan and develop the national economy.