1238. Budget: Surplus or Deficit...

A statement on the financial planning of the year by the elected government is called Budget. It is the resister of income as well as expenditure the government makes for the financial year which generally starts from the first day of April to the last day of March of successive year.

Among the important documentation that the government makes this report on finance is also important document. It is similar to a company’s annual report, where the financial performance of the previous year and the financial plans of the next year are made public. Transparency is the key of governmental budgeting. 

This report is what most citizen of a nation from the common man to the politician wait eager to know. Since the citizen of the nation comprises of Rich or Poor, Salaried or Self-employed, Business or Service, Employer or Employee, they have different opinion on the Budget. A budget can never satisfy the entire section of the society. If one section is happy there is another section which is grumbling. Also we have politics in analysing the budget. Even a person who sits in opposition and finds the budget satisfactory, he cannot express his views as his party expects him to criticize it.

Family budget and a Nations budget are not different at all.  The smartness in handling the budget is in striking the balance between revenue and expenditure. Revenue comes from various tax levied and the expenditure is on various development projects. In a family, the resources are from the bread earners in the form of either salary or rent.  

Family budget helps to figure out our long-term objectives and work towards them. If we toss money at everything we see and not one the allotted lot we end up left with nothing. Budgeting helps in managing the finance.

Many times the purchase power because of credit cards makes us become impulsive buyers. Budgeting helps in tracking the finance.   

Emergencies arise without information; to take care of the crises there is a need to save. Budgeting helps in investing and insurance.  

      

By presenting the Budget the country will know about it reserves so that it can analyse where it stands in the financial frame.

Finances are complicated, even with the simplest of incomes. Money management starts from budgeting. Without a framed budget we probably will buy things that are not necessary. A plan for saving and spending draws a boundary and defines what is essential. The budget from deficit to surplus can happen if the income is better than expenditure. It is hard to cut on the expenditure be it the government or at home, it is wise to increase the income gradually. Anyhow if the impulsive buying is cut down the expenditure will be only for the needed. For the necessary expenditure the revenue has to be appropriate. Moreover just as the free spending affects the home budget the freebies by the parties to appease the voters will affect the budget of the nation.

Subsidies, perks, reservations and grants are the bugs that eat away the surplus budget reducing it to deficit.