What is the budget?

Any state can not fulfill its basic function (regulation of the economy) without using appropriate economic methods. At the same time, it can not earn money itself and carry out entrepreneurial activities to realize this function. That is why the necessary financial resources form the state budget, the revenue part of which is replenished, mainly due to taxation.

The budget is formed once in twelve months, often during this year there are unforeseen circumstances that have a significant impact on its implementation and the implementation of the state's stabilization policy.

In order to fully understand the meaning of the concept under consideration, it is necessary to find out for yourself what the budget is.

This, first, is a plan for spending available for keeping health, education, defense and other activities that are in the hands of the state.

Secondly, the income plan, formed due to the taxation system, as well as other non-tax payments and fees. In this case, the revenue part should be clearly stipulated in the budget, i.e. In what volumes should the tax payments be made in the context of the main taxes.

Thirdly, in accordance with the planned budget, the state carries out certain loans during the year, and also must pay interest on already existing debts.

An obligatory procedure in the budget process is the provision of a budget performance report. This document is very important, as it should record all the state's expenditures for the past year.

In other words, it can be stated that such a budget is a kind of balance between the state's revenues and expenditures, the balance of which can be either positive (surplus) or negative (deficit).

The state budget exerts a huge influence on the economy of any state, and at the same time it is very sensitive to any changes (economic or political) both within the country and in the external environment. The interdependence of the budget and the domestic economy of the state can be seen on the example of additional state subsidies in innovative industries, which in the future contribute to higher productivity and increase the revenue side of the budget. Or, conversely, an increase in tax rates entails a reduction in the incomes of the population, and, correspondingly, a decrease in the level of consumption. With additional investments in the manufacturing industries of the state (metallurgy, coal industry , etc.), people's wages are raised, unemployment is reduced and a positive economic result is achieved-an increase in tax revenues and a reduction in the budget deficit.

When considering the concept of "what is the budget", one can not fail to mention the important function of the state, which consists in the redistribution of financial resources. It is the state budget that is the main source for maintaining an unprotected category of the population (disabled, veterans, poor citizens). These people are paid additional benefits, certain subsidies are given, and other financial support is provided.

What is the budget? This is felt by those branches of the economy, which are fixed in the relevant legislative document as priority, and it is in the expenditure part of the state budget that the amounts of investments necessary for their maintenance and development are fixed. After all, for the successful development of the state, the constant development of knowledge-intensive industries characterized by energy and resource-saving factors is necessary.