The budget is generally defined as an expectation of revenues and expenditures over a period of time, and the state’s general budget is a financial report that includes expectations of revenues and expenditures for a full fiscal year. It is issued annually by the Ministry of Finance in the country and is approved or rejected by the head of state. It is worth noting that the state’s general budget consists of two main items, which are revenues and expenditures, and that each item includes several detailed items below it. To get acquainted with the details of the items in the state’s general budget, we will discuss its topic during this article.
What are the items in the general budget?
The general budget is basically divided into two branches, which are the expenditure budget and the revenue budget. Below each of these two branches there are several items, and the following are the details of each:
Budgeting expenses
They are all expenses incurred by the state during a fiscal year and are divided into two categories that can be explained as follows:
- Operational expenses: It refers to all expenses paid by the state for the continuation of the work of the various state agencies, such as salaries, purchasing or maintaining machinery and equipment, purchasing supplies, and others.
- Investment expenditures: It means the expenditures paid by the state in order to improve its level at various levels, whether it is at the level of infrastructure such as paving roads, etc., or at the level of improving the economy by granting facilities to investors.
- Public debt expenditures: These are the sums paid by the state to pay off debts, whether external or internal, in addition to their interest.
Revenue balancing
They are all amounts expected to be received by the state during a fiscal year and are divided into several items, including the following:
- Non-tax revenues: These are all amounts that the state obtains through its investments, the sale of the products it manufactures, or in the form of interest on the loans it grants, in addition to administrative revenues, which are in the form of fees for the services it provides to citizens and residents, fines, or grants that it obtains from third parties.
- Tax revenues: Tax revenues are divided into two types: direct taxes, which are collected from a person or entity without the option of transferring them to another party, such as income tax, and indirect taxes, which are imposed on products and collected from any party or person who obtains these products, such as sales tax.
What are the objectives of the general budget?
The state usually sets goals for its general budget, and the following are the most prominent of these goals:
- Economic growth is one of the most important goals of the state budget, and it is intended to raise the country’s gross domestic product. This is usually achieved by directing the budget toward the public interest and raising the standard of living for citizens.
- Eradicating poverty and unemployment is one of the most important goals included in the state budget, and this is done through creating job opportunities and securing basic needs such as housing, education, health care, and food for citizens.
- Redistribution of income in order to achieve equality by giving grants and subsidies to the poor and taxing the wealthy.
- Management of Public Institutions A large part of the state budget is spent on financing and developing state public institutions and improving the services they provide.
Read also: What are the types of state expenditure?
