The budget of the countries of the world: rating

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:43

The budget of the countries of the world is a monetary fund that is used by their governments to finance their own activities. It is a kind of nationwide estimate of income and expenses. The state budget interacts with many parts of the country's financial system. It is with the help of money that it provides assistance to promising and key industries.

Basic concepts

The budget of the countries of the world differs in a number of features. Its structure depends on a number of factors, an important place among them is occupied by the administrative-territorial structure of the state. The budget is usually drawn up by the government and approved by the parliament or other supreme legislative body. It should be noted that the concept itself appeared with the advent of the state. However, it acquired the form of a document approved by the highest legislative body only with the coming to power of the bourgeoisie. Treasury is usually called the financial department that deals with the execution of the budget, thenis the storage and use of his funds.

This document lists the government's revenues and expenditures for the year. Often, the period from January 1 to December 31 is taken into account. Thus, it reflects the monetary relations that the government has with individuals and legal entities regarding the redistribution of national income. It includes two articles. Income is generated from:

• Taxes. They are collected by central and local governments.
• Non-tax deductions. For example, income from foreign economic activity or leasing of state-owned property.
• Seigniorage. That is, profits from the issue of money.
• Income from trust funds and privatizations.

In Russia, about 84% of budget revenues come from tax revenues.

Expenses are the funds allocated by the government to finance the goals and objectives defined by it. From a macroeconomic point of view, they are divided into the following groups:

• Government Procurement.
• Transfers.
• Serving the public debt.

Expenses can be divided according to their purpose:

• For political purposes. Here you can highlight the cost of security and maintenance of the state apparatus.
• For economic purposes. These are the costs of ensuring the functioning of the public sector and subsidizing the private sector.
• For social purposes. These are expenses for the payment of pensions, allowances and scholarships, as well as for education,he alth, science, environmental protection.

In historical context

The concept of the budget in the countries of the world appeared in the 18th century. The very idea of accounting for government revenues and expenditures belongs to Sir Robert Walpole. He was Chancellor of the Exchequer at the time and sought to restore public confidence in the system after the collapse of the South Sea Company in 1720. In 1733, Walpole announced his plans to impose an excise tax on the consumption of a variety of goods, including wine and tobacco. The tax burden on the landed nobility, on the contrary, was supposed to be reduced. This caused a wave of public outrage. A pamphlet en titled "The Budget is Open, or a Pamphlet Reply" was published. Its author was William Pultene. It was he who first used the word "budget" in connection with the fiscal policy of the state. Walpole's initiative was cancelled. However, by the middle of the 18th century, accounting for government revenues and expenditures had become common practice in developed countries.

Types of budget

Usually there are three of them. The most common is a budget deficit. This means that government spending exceeds receipts. Allocate a deficit of income, financial and primary. A budget surplus occurs when revenues exceed expenditures. This is a rather rare situation. The best option is a balanced budget. It implies that income equals expenses. This is the state of affairs that all countries of the world are striving for.

Destination

The budget of the countries of the world has four main functions:

• Distribution. This means that the budget is formed from centralized funds and is used at various levels of government. The distribution of income contributes to the balanced development of regions.
• Stimulating. The state regulates the economy of the country with the help of the budget. It can purposefully increase or restrain the growth rates of production in certain regions.
• Social. The budget accumulates funds that can be used to develop he alth care, education, culture and support vulnerable populations.
• Control. The state monitors the receipt and use of budget funds.

Compilation principles

It is believed that any budget should be complete, unified, real and transparent. Trust in the government, as well as the balance and speed of development of the country's economy, depend on compliance with these principles. Completeness means that all receipts and expenditures must be included in the budget. Everything unaccounted for contributes to the shadow economy and an increase in uneven development. The unity of the budget implies the existence of a single document in which all income and expenses are classified in a certain way. Therefore, they can be compared and contrasted. The reality or, as this principle is also called, the veracity of the budget indicates that all articles of this document must be reasonable and correct. For this, it needs a public discussion by the government.and approval by parliament. It is precisely with the latter that such an important principle as publicity is connected. It also includes the need for periodic reports on budget execution by various bodies.

Treasury as a special financial body

This department is engaged in cash execution of the budget. It may have different names in different countries. However, everywhere the treasury performs a similar set of functions. Among them:

• Ensuring that all budget revenues are accounted for.
• Reaffirmation of government spending commitments.
• Make payments on behalf of government recipients.

World budgets in 2017

This indicator can be viewed in different ways. For example, bearing in mind the largest budgets of the countries of the world, one can take into account income, the size of the deficit (surplus). Consider first the countries of the world in terms of income. World budget revenues range from $3.4 trillion for the United States to $1 million for the Pitker Islands. The top five for this indicator included, in addition to the United States, such states as China, Japan, Germany and France. They are also leaders in terms of spending. But much more interesting is the rating of the budgets of the countries of the world in terms of deficit (surplus). First place is Germany. Its budget surplus is $23 billion. The top five also included such countries as Norway, Macau, Switzerland and Iceland. If we look at the percentage of surplus, thenleaders are several other states. These are Macau, Tuvalu, Iceland, Palau and the Turks and Caicos Islands.

Military budgets of the countries of the world

This indicator is calculated by two organizations. According to the Stockholm International Peace Research Institute, the military budget of the countries of the world in 2017 exceeded $1.686 billion. That's 2.2% of the world's gross domestic product. The United States ranks first in terms of spending in this area. In 2017, they spent $611.2 billion or 3.3% of GDP. The second is China. But its spending is almost three times less than that of the US - only $215.7 billion, or 1.9% of GDP. Russia also entered the top three. The Russian Federation spent 69.2 billion dollars or 5.3% of GDP on the military sphere. The top five for this indicator also includes countries such as Saudi Arabia and India. According to the International Institute for Strategic Studies, the United States is also in first place in terms of military spending, and China is in second place. However, then come countries such as Saudi Arabia, Russia, the UK and India. The figures themselves are slightly different, but not significantly.

The budget is one of the most important instruments of state regulation. It is necessary in order to manage the economy, carry out planning and develop the national economy.