The national budget is the main instrument through which governments collect resources from the economy, in a sufficient and appropriate manner; and allocate and use those resources responsively, efficiently and effectively (Todorovic & Djordjevic, 2009). The work of public budget has increased extremely more complicated, abstruse and worrying (Hou, 2006, p.730).
Fiscal Affairs Department of IMF in 2009 declared that a statement of the main central government tax expenditures should be required as part of the budget or related fiscal documentation, indicating the public policy purpose of each provision, its duration, and the intended beneficiaries. In addition, there is an area of the budget that routinely escapes rigorous inspection. This is the large allocation of state resources through the use of tax expenditures which reduce the taxes that might otherwise be collected. The tax expenditure report supplements the annual or biennial budget document (Benker, 1986).
Tax expenditures are popularly known as tax loopholes or tax breaks. It departures from the normal tax structure and ...
Our Preamble lists five main goals that are required to help create a strong and stable society within our country. However, money is required in order to achieve these goals. We get this money from the Federal Budget which is the yearly amount we receive in order to better our country. The question here is, are we slicing the pie correctly in relation to the federal budget? In each of three budget clusters, the U.S Government should make adjustments in the way it is distributing money by making changes involving the Big Five, the Middle Five, and the Little Guys.
Mikesell, J. L. (2010). Fiscal administration: Analysis and applications for the public sector (8th ed.: 2010 custom edition). Mason, OH: Cengage Learning
Wayne Swan 2010, ‘Budget Speech 2010-11’ Australian Government. Retrieved May 20th, 2010, from - http://www.budget.gov.au/2010-11/content/speech/html/speech.htm
Our current system of taxation is a varied rate percentage based on different income brackets. Many say that it violates our constitutional rights through unequal taxation. Multiple deductions, loopholes, special rates, and a complex system of regulations all characterize our Federal Income Tax System, prompting many to question why it is still being used (Peters, 2013). The current system although bringing in over $3 trillion, taxes income multiple times, and includes the taxing of estate, labor, savings, and investments (National Priorities Project, 2013). The system itself is complex with over 20,000 pages of regulations, requiring a massive filing system, which is set up and maintained by an even larger IRS, requiring over $225 billion in compliance costs (Hall, 2001). One can be hard pressed to find an advantage in the current system, other than the fact that it provides the government with an enormous amount of funds, and it has...
The Australian Budget is an annually published document which details the Federal Government's plans to affect the level of economic activity, resource allocation, and income distribution through the use of fiscal policy. It describes the framework which the government intends to follow during the next financial year which will result in the attainment of their objectives. The budget is a publication of the government's plans regarding the use of fiscal policy, and is published to parliament and the general public on “budget night”, so as to allow open dissemination about the status of public finances and to promote transparency in Australia's fiscal policy.
For government budgeting to be effective, the process that guides it must be an evolving one. As the government gets bigger, it will most likely destabilize the existing method. Therefore, it must change to keep pace with the demands and growth of the country. The process must be capable of handling the complexity of our nation and its multifaceted needs so it will always need revisions and restructuring to face these new challenges. Its ultimate goal must be to reinforce the government and strengthen the country.
1, s. 4, p. 20) or forgone earnings. Forgone earnings are basically the earnings that could have been achieved and/or obtained had the circumstance been different (BusinessDictionary.com, 2016). Income is defined as reward for service, profit on business, return of an investment or some form of regular payment (Redfern Legal Centre 2014, p.1272 ) However, the Government defines revenue forgone as an approach whereby tax revenue is estimated between the existing and normal income tax treatment of its citizens (Commonwealth of Australia 2016, Budget Paper No. 1, s. 4, p. 20). Further, the Government states that these expenditures may be contentious because they treat tax payers differently based on their economic activity and/or their economic class. In addition, the expenditure is not considered revenue and warns that, if tax expenditures were abolished, revenues may not increase due to changes in the behaviours of the recipients of the tax benefits (Commonwealth of Australia 2016, Budget Paper No. 1, s. 4, p. 20). Howard (2007, p. 56-57) states that people who benefit from the tax expenditures have a louder political voice because they fund, and actively participate in policy formation thus shape the governing power of a nation. For these reasons, tax expenditure hinders the fair distribution of tax revenue. The Government’s failure to collect
Many United States' citizens are unaware of the country's current financial state. Many assume that one of the world's wealthiest countries could never be in debt. This is untrue however, and, in fact, the country with the greatest income per capita is in major debt. This study will examine possible solutions to reducing the United States' national budget deficit.
The U.S budget deficit over the years has been a problem but lately the deficit has shrunk. However, what made the U.S budget deficit get to where it is today and what will it be like in the years to come. Throughout the past the U.S has operated under a deficit. This means that the U.S Spent more money than it was taking in. The cause of the excess in spending was different depending on which year. Some of the causes were war, increase in spending , and economic downturns. There were different acts passed to try and control the deficit problem. The deficit at the present time is declining. This decline is due to the improving economy, sequester, and a tax increase on high-income households. The big factor that went into the decline in the deficit for 2013 was the payment that Fannie Mae and Freddie Mac made. The deficit decline in the present time may make some think the U.S could get out of debt but it has been projected that the U.S deficit will start to increase once again.
A comprehensive budget is one that covers both recurring, and non-recurring incomes and expenses, so it covers all areas of finances. The comprehensive budget is comprised of both the operating budget, and the capital budget. The operating budget is important because it reflects the recurring income and expenses. That includes living expenses and income from wages, dividends, and interest. The purpose of this is to reflect the short term lifestyle choices. This would be a good way to see if maybe you are living beyond your means, or if maybe you should spend less money going to clubs, or on vacation. Golf memberships cost a pretty penny, and if you are finding it hard to pay your dues, this is a good way to see if maybe you just can’t afford
Although it is unobtainable to fully balance the national budget I do believe a better budgeting system should be put into place. A fully balanced budget wouldn’t be obtainable because the government cannot budget for things like a war or a state of emergency due to a natural disaster. I do however believe it would be necessary to propose a certain type of amendment on the Constitution requiring a better balanced federal budget for things that are expected. An amendment to the Constitution would guard upcoming generations from any debt that others may have acquired throughout previous years (Peter G. Peterson Foundation, 2016). As related to this analysis, this would offset the need to continuously raise tuition year after year and help many
The purpose of this paper is to illustrate the layout of taxation. I will differentiate the types of taxes and the roles that they serve currently. Subsequently, I will explain what equity, efficiency, effectiveness and transparency (EEET) are and show how they apply to taxation as a whole. Lastly, I will conclude how the EEET applies to the four tax types.
Line item budgeting categorizes various expenses and places them in list format on a document for budgetary purposes. This type of budgeting is considered the heartbeat of budgeting due to the systematic method by which it controls revenue and expenses, this is made evident when Tyer and Willand (1992), pointed out “Statutory or administrative controls could be imposed on the transfer of funds from one-line item to another, or between broad categories of expenditure.” According to Schick (1971), “line item budgets were attractive to legislative officials because they did not focus explicit attention on substantive policy issues or choices.”
Revenue collection for the government. This will provide for the administrations, internal and external defense, maintenance of laws and order as well as social services that the government provides.
It requires an adequate and sound organizational structure, that is, there must be a definite assignment of responsibility for each function of the enterprise. Budgeting compels all the members of management, from the top to bottom to participate in the establishment of goals and plans. Budgeting compels departmental managers to make plans in harmony with the other departments and of the entire enterprise. Budgeting helps the management to put down in figures what is necessary for a satisfactory performance. Budgeting helps the management to plan for the most economical use of labor, material and capital. Budgeting tends to remove the cloud of uncertainty that exists in many organizations, especially among lower levels of management, relative to basic policies and objectives. Budgeting promotes an understanding among members of management of their co-workers' problems. Budgeting force management to give adequate attention to the effects of general business conditions. Budgeting aids in obtaining bank credit as banks commonly require a projection of future operations and cash flows to support