Part 25 - Public Finance - مالية عامة ( Public Budget = الموازنة العامة)

( Public Budget = الموازنة العامة) : 1. Definition of Public Budget :  [ D ] Public Budget ( Government Budget ) is : An “annual financial statement” which outlines the estimated government expenditure and expected government receipts or revenues for the forthcoming fiscal year It is generally a “forecast” by a government of its expenditures and revenues for a specific period of time. (i.e. Future Plan) In national finance, the period covered by a budget is usually a year, known as a “financial or fiscal year”, which may or may not correspond with the calendar year  As the case with public finance and private finance, Public budgeting is completely different from private budgeting : 1- The “purpose” of public budgeting is more comprehensive that aims to provide services to citizens. However, private budgeting aims to focus on the financial centre of the company. 2- The “economic and social effects” caused by public budgeting are bigger than private budgeting; where the public budgeting affects more at different levels of the country. 3- The “controlling or regulatory agencies” that monitor on executing public budgeting are various (e.g. regulatory agencies inside and outside the organization.). 4- The “stages of preparation” of public budgeting is longer and more complex than private budgeting. ================================================== 2. Importance of Public Budget :  [ Importance ] Public Budget ( Government Budget ) is : The most important information document of the government. One part of the government's budget is similar to company's annual report. (This part presents the overall picture of the financial performance of the government.) Second part of budget presents government's financial plans for the period up to its next budget.  [ General Knowledge ] Every citizen of a nation from the common man to the politician is eager about the budget ; as they would like to get an idea of : 1. Financial performance of the government over the past one year 2. To know about the financial programmes & policies of the government for the next one year. 3. To know how their standard of living will be affected by the financial policies of the government in the next one year. ==================================================================== 3. Preparation Process : 1. “Preparation” : the budget involves the development of expenditure estimates for departments in light of available revenues. (Prepared by Executive authority) 2. “Approval” : budget estimates are then submitted to a city council (board) or Parliament for review and modification, often with citizen inputs from public meetings. The budget is then legally approved and adopted. (approved by legislative authority) 3. “Implementation” : the budget is then implemented by Ministries & municipal departments throughout the fiscal year. (implemented by Executive authority) 4. “Evaluation / Audit” : the performance of all governmental units is monitored and measured throughout the fiscal year. Many indicators are evaluated at the year's end to inform and prepare the budget process for the following year. ======================================================================= 4. Types of Public Budget : ( 1 ) Balanced Budget : ( 2 ) Surplus Budget : ( 3 ) Deficit Budget :