What is Public Budget definition/concept
A political project of a nation, province or municipality requires funding , which is reflected in a public budget. Thus, a government program is translated into a specific development plan that details the set of expenses and investments of the various public sector entities.
The public budget is a financial tool for community development.
In every budget prepared by any area of administration there are three large sections. On the one hand, the revenues that are predictably collected from taxes paid by citizens and businesses.
Second, expenses associated with different services (staff salaries, infrastructure, social services, etc.).
Between the two sections there is a third aspect, the annual cash program (the distribution of income and expenses over a year).
In the public sector of a nation there are entities of different nature: companies, local, regional and state institutions. All governed by a public budget law, in other words, a set of rules that allow administering the budget of any entity integrated within the administration.
As a general rule, this type of law has an organic character and is accompanied by complementary laws on several specific aspects (for example, on fiscal responsibility or debt of public entities).
In a simplified way, it can be said that in every public budget, two fundamental questions are specified: on what will be spent the money collected and how much will be spent. When the state calculates what it will receive annually, it can schedule its payments with regional and local governments.
The main function is to maintain a balance between income and expenses. At the same time, it is intended that the allocation of resources is carried out according to financial availability . On the other hand, it is a guide that allows you to follow up on the goals set by a government.
Finally, it is a tool that aims to facilitate the efficiency of public resources.
Analyzing the word in technical terms
A budget means doing something before it happens. In this sense, budget is synonymous with anticipation, estimation, planning or forecasting.