10 Characteristics of the Public Budget

We explain what a public budget is, its main characteristics and the advantages of this financial tool.

What is the public budget?

The public budget is a financial tool used by government agencies and entities that reflects the income and expenses of money in a given periodwhich is usually set at one year. In this way, the public administration has a forecast of the resources that will be available to carry out the objectives, goals, projects and programs that it has set in advance.

The public budget It may be intended to describe the financial flow of an entire State (national, provincial, municipal) in a specific year, as well as indicating the economic characteristics of a specific department or division (health, transportation, education, etc.).

On the other hand, most specialists agree that the public budget is directly related to the economic policy of a governmentas it functions as the materialization or practical derivation of the ideas or concepts that guide an economic policy.

As long as public information instruments function properly, the public budget It is also a useful tool of government control. for the average citizen, who needs to know how and on what state resources are spent, a significant percentage of which come from the taxes they pay.

It is also worth noting that there are third sector organizations and areas of justice specialized in the control of the public budget, with the advice of technicians capable of monitoring the correct compliance with the guidelines established financial institutions.

See also: National income.

Characteristics of the public budget:

  1. It is anticipated

The public budget It contains the forecast of expenses and income of the state sector for a future periodwhich in most cases is set at one year. This allows for a certain framework of security and order at a financial level for the activities that will be carried out during this period.

  1. It is quantifiable

Accounting figures and expressions are used to accurately quantify each economic movement, without any doubt as to the quantities involvedA set of financial criteria are also used to provide order to the public budget.

  1. It is mandatory

The public administration, in the hands of the executive power, is legally obliged to comply exactly with the established budget, which also must be approved by the legislative branchIn the case of income, this may exceed the figures indicated. However, extraordinary expenditures can only be specified based on specific legal instruments that reflect a special need or urgency.

  1. It is regular

The public budget must respect the established cards and then it is reworkedalways according to regular periods of time that are repeated. As we said before, this instrument is prepared in most cases with a regularity of one year.

  1. Turn public policies into direct action programs

Through the resources that are allocated through the public budget, the policies designed by the state by each administration are transformed into programs with concrete action in the territory. For example, if the state seeks to promote education by building new schools, the resources established by the budget will go to allow the commencement, development and completion of works at each selected geographic point.

  1. Facilitates the evaluation and control of government management

Thanks to the existence of the public budget, society and specialized agencies regularly have a specific instrument to evaluate and control government actions. This way, you can know the destination that the public administration gives to the funds. of the state, which belong to all citizens.

  1. Coordinates different state agencies

The financial order generated by the public budget makes it possible the coordinated and integrated work between the different organizations and state departments, since each of them knows the allocated budget items with which they must try to meet the objectives proposed for each period.

  1. It is clear and specific

The public budget must be clear in its treatment and specific in terms of the issues addressed. This It is vital to achieve the implementation of programs and projects that depend on this financial instrument when it comes to having the necessary economic resources.

  1. Pursue financial balance

Through sound management of public accountsmakes possible the financial equilibrium of the nation or the state entity involved. Although it is always subject to the stability of the economy in general and to unforeseen circumstances, it tends to balance income and expenses and generate a sustainable economic structure over time.

  1. It is flexible

This does not mean that the public budget can be modified in its spirit or general guidelines, but that it must have the necessary flexibility to not become an impediment when developing actions specific government measures, due to extreme rigidity in their execution.

For it The coordination between the different state agencies is vitalin addition to providing the different levels of administration with the necessary tools to execute resources, without requiring the operation of a bureaucratic system or one that is too slow in its operation. In this way, the virtual paralysis of government activities is avoided, achieving fluidity in daily tasks.

Related Posts