Budget of the countries of the world: rating

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The budget of the countries of the world is a monetary fund whichused by their governments to fund their own activities. It is a kind of national 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 assistance to promising and key sectors is derived from it.

Basic concepts

The budget 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 and territorial structure of the state. The budget is usually drawn up by the government, and is approved by Parliament or another supreme legislative body. It should be noted that the concept itself appeared with the advent of the state. However, the form of the document approved by the highest legislative body, he acquired only with the coming to power of the bourgeoisie. It is accepted to call the Treasury a financial department, which deals with the execution of the budget, that is, the storage and use of its funds.

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

Taxes. They are charged by central and local governments.
Non-tax deductions. For example, income from foreign economic activity or leasing property that is in state ownership.
Seignorage That is, the profits from the issue of money.
Income from trust funds and privatization.

In the Russian Federation, about 84% of budget revenues accounted for tax revenues.

Expenditures are those funds that are directed by the government to finance its goals and objectives. From a macroeconomic point of view, they are divided into the following groups:

State procurements.
Transfers
Servicing the public debt.

Costs can be divided according to their purpose:

For political purposes. Here you can highlight the costs of security and the maintenance of the state apparatus.
For economic purposes. These are the costs of maintaining the public sector and private subsidies.
For social purposes. These are expenses for the payment of pensions, allowances and scholarships, as well as for education, health care, science and environmental protection.

In the historical context

The concept of a budget in the world appeared in 18century. The very idea of accounting for state revenues and expenditures belongs to Sir Robert Walpole. At that time, he was the chancellor of the treasury and sought to restore public confidence in the system after the collapse of the South Seas company in 1720. In 1733, Walpole announced his plans to impose an excise tax on the consumption of many goods, including wine and tobacco. The tax burden on the local nobility, by contrast, was supposed to be reduced. This caused a wave of public outrage. A brochure titled “The budget is open, or the answer to a pamphlet” has been published. Its author was William Poulten. It was he who first used the word "budget" in connection with the fiscal policy of the state. The Walpolu initiative has been canceled. However, by the mid-18th century, accounting for government revenues and expenditures had become common practice in developed countries.

Budget types

Usually they are distinguished by three. Most often there is a budget deficit. This means that government spending exceeds revenue. Allocate a deficit of income, financial and primary. Excess budget arises when revenues exceed expenditures. This is a rather rare situation. The best option is a balanced budget. It implies that revenues are equal to expenses. All countries of the world are striving for this state of affairs.

Appointment

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

Distributive. This means that the budget is formed at the expense of centralized funds and is used at various levels of government. Income distribution contributes to the balanced development of regions.
Stimulating. The state with the help of the budget regulates the economy of the country. It can purposefully strengthen or constrain the growth rate of production in certain regions.
Social. The budget accumulates funds that can be used for the development of health care, education, culture and support for vulnerable groups of the population.
Control. The state monitors the receipt and use of budget funds.

Principles of compilation

It is believed that any budget should be complete,one, real and vowel. Confidence in the government, as well as the balance and speed of development of a country's economy, depend on compliance with these principles. By completeness, it is understood that all receipts and expenditures must be included in the budget. Everything unaccounted for contributes to the shadowing of the 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 compared. The reality or, as this principle is also called, the budget's credibility indicates that all the articles of this document must be reasonable and correct. For this, its public discussion by the government and approval by the parliament are necessary. Such an important principle as publicity is connected with the latter. It also includes the need for periodic budget performance reports by various authorities.

Treasury as a special financial body

This department is engaged in the 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 accounting for all budget revenues.
Confirmation of the commitment of the government to expend funds.
Making payments on behalf of recipients of money from the state.

Budgets of the world in 2017

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

Military budgets of the world

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

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