Have you gone through Nepal Government's Budget Speech for the Fiscal Year 2018/19? If you have not, here is the link to the speech [PDF file], please go through the speech and understand what are the priorities and policies of current government vis-à-vis economic growth, development, and allocation of resources:
What is Government Budget?
In simple words, Government Budget is:- Annual financial statement or a forecast,
- Presents government's proposed revenues and spending for a financial year,
- Often passed by legislature,
- Approved by chief executive or President
- Presented by Finance Minister to the nation.
Types of Budget
Broadly, budget are of three types:
- Balanced Budget: when government receipts are equal to the government expenditure
- Deficit Budget: when government expenditure exceeds government receipts
- Revenue Deficit
- Fiscal Deficit
- Primary Deficit
- Surplus Budget: When government receipts are more than expenditure
Importance of Budget
Budget is important because:
- It presents a planned approach to Government's activities
- It's an integrated approach to fiscal operations
- It affects economic activities of a country
- It's an effective instrument of economics policy
- Budget can be viewed as an index of Government's functioning
- It promotes public accountability
- It allocates/reallocates the resources for the economic development of a country
- It's a document for economic growth
- It helps to attain economic stability in a country
- It aims to reduce the inequalities in income and wealth
- It aims to reduce regional disparities
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