The state budget surplus

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2018-04-13 17:00:31

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The state budget Surplus-is a measure of the excess budgetary revenues over expenditures. In other words – the achievement of the country a positive balance on the results of economic activities of economic entities. Balanced budget – the most favorable version of the state budget. However, the actual balance of this indicator it is possible to achieve not often. And as a result – the state has a budget deficit, which subsequently leads to tax debt.

As is known from the theory, the budget structure is represented by a set of state, regional, municipal and consolidated budgets. And this division must be considered when conducting a detailed analysis of their outcome. So, the balanced budget at the state level does not cover the negative balance of most of the regional and local budgets.

The state budget Surplus should always be examined from the position of positive and negative preconditions. So, if there is the indicator effective and economical consumption of budget funds and in this case, observed full one hundred percent financing, this phenomenon, of course, positive. In the case that a fairly high income resulted from the current favorable situation of the economic situation, or did it happen due to the austerity shortfall of funding for public expenditure – this is not a positive thing.

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On the basis of the surplus created at the state level stabilizing Fund, whose revenues account for about half of profitable part of state budget. These funds the government can use to attract investment in the country, modernization (upgrade) of fixed assets, strengthening of innovative activity, financing of health and social services.

The state budget Surplus it generates the additional savings that the state can use to purchase additional financial and non-financial assets, repayment of debt and payment of capital transfers.

The state budget Surplus is in constant confrontation with the deficit. These two qualities are the opposite and cannot exist at the same time. Thus, the budget deficit-an indicator of excess government spending over income. The income and expenses are generated according to a special classification are specified in the relevant law on the state budget.

The Main cause of the deficit are the slowdowns, political instability in the country and, of course, war. All these factors indicate a significant decrease of budget revenues in the form of lower tax revenues. And at the same time expenses either remain the same or even increase. Thus, it is possible to see a gradual increase in the deficit.

The Sources of covering the budget deficit can be represented in the form of additional funding, and attracting various types of investments. The first method may be represented by the money supply, which can strengthen inflationary processes be characterized by growth of prices for goods and services, lower living standards of most of the population and exacerbate social tensions in the country. That is, for these reasons, the most viable option for the state is the use of domestic and foreign loans.

Summarizing all the above, we can conclude that the surplus of the state budget can have both positive and negative moments in its formation. The arising of these factors should be subjected to detailed scrutiny by financiers of the state and to prevent the occurrence of negative aspects in the formation of the state budget in the future.

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