Definition of Public Budget

A political project of a nation, a province or a municipality requires financing, which is reflected in a public budget. Thus, a government program is translated into a specific development plan where the set of expenses and investments of the different entities of the public sector.

The public budget is a financial tool for the development of a community

In any budget prepared by any area of ​​the administration there are three major sections. On the one hand, those income that are expected to be collected from taxes paid by citizens and companies.

Second, those expenses associated with the different services (salaries of civil servants, infrastructures, social services, etc.).

Between both sections there is a third aspect, the annual cash program (the distribution of income and expenses throughout a year)

In the public sector of a nation there are entities of different nature: companies, local, regional and state institutions. All of them are governed by a law

public budget, that is, a set of rules that allow manage the budget of any entity integrated within the administration.

As a general guideline, this type of law has an organic nature and is accompanied by complementary laws on different specific aspects (for example, on responsibility tax or on the indebtedness of public entities).

In a simplified way we could say that in every public budget two fundamental questions are specified: what will the money collected be spent on and how much will it be spent. When the state calculates what you will receive annually, you can already schedule your payments with the different regional and local governments.

Main objectives

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 monitoring of the goals established by a government.

Finally, it is a tool aimed at facilitating the efficiency of public resources.

Analyzing the word at a technical level

This word is divided into two parts: the prefix pre means before something and assumption is equivalent to event or event.

A budget involves doing something before it happens. In this sense, budgeting is synonymous with anticipating, estimating, planning or forecasting.

Fotolia photos: Steinar / Robu_s

Topics in Public Budget