GOVERNMENT BUDGETING AND THE NEED OF GOVERNMENT BUDGET
WHAT IS A BUDGET? A budget is made to get an estimate of income and expenditure. It is different from an account which is a recording of a financial transaction. The budget is an extremely vital part of the economy of any nation since it helps in planning and controlling its financial affairs. The need for a government budget arises from the fact that income and expenditure do not happen at the same time. A revenue receipt and expenditure flow do not coincide in time. GOVERNMENT BUDGET A government budget is made to approach and address the needs and issues of a country. It is an annual financial statement where an itemized estimate of revenue expected and expenditure anticipated are listed for the current fiscal year which runs from April 1 of one year to March 31 of the next year. Elements of government budget : 1. Public Expenditure: A national budget authorizes public expenditures under two categories: Government purchase of goods and services to serv...