Public budget

Página 36

Public Budget

The public budget is a fundamental instrument for the financial management of a State, be it federal, state or municipal. It represents the forecast of the resources that will be raised and the expenses that will be carried out over a certain period, usually one year.

There are two types of public budget: the revenue budget and the expenditure budget. The revenue budget estimates the sources of resources that the State will have at its disposal, such as taxes, fees, social contributions, among others. The expenditure budget determines how these resources will be used, that is, what the government will spend in areas such as health, education, security, infrastructure, among others.

One of the main objectives of the public budget is to ensure transparency in the management of public resources. It allows the population to be aware of how the money raised will be used and enables social control over government actions. In addition, the public budget also helps in making strategic decisions, as it allows investment priorities to be established and possible sources of financing to be identified.

To prepare the public budget, it is necessary to follow a process that involves several steps. The first is the preparation of the budget proposal, which is made by the Executive Branch and forwarded to the Legislative Branch. Afterwards, the proposal is analyzed and discussed by the parliamentarians, who can make changes and amendments. After this step, the budget is approved and turned into law.

It is important to emphasize that the public budget must be prepared in a realistic and responsible manner, taking into account the State's revenue capacity and the needs of the population. In addition, it is essential that there be effective control of budget execution, to ensure that resources are used appropriately and in compliance with current legislation.

In summary, the public budget is an essential instrument for the financial management of the State. It allows the planning and control of available resources, in addition to ensuring transparency and social control over government actions. Therefore, it is essential that it be prepared in a responsible manner and that there is an effective monitoring of its execution.

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