State budget and public debt

State budget - is the main financial plan with the revenues and expenditures of the state for a certain period of time, it is money that allows the state to function. Here are the money is already in their natural functions as a medium of exchange or payment. But before we get to that final link, they are formed and serve the totality of economic relations and economic relations.

The state budget is the budget of the government and local budgets (region, city, district, village council). Therefore, approval of the state budget for the next year is always stormy. Governments are trying to undermine the rights of regions, and the latter tend to leave more money in their possession.

The budget consists of two parts: income and expenses. In countries with a developed market economy, budget revenues by 80-90% is formed by taxes on enterprises and the public.

The rest of it comes from the use of state-owned foreign trade. The structure of the budget expenditure includes expenditure on social and cultural needs (health, education, social benefits, etc.), the cost of development of the economy, defense, public administration. Redistributed through the state budget a large part (55%) of the national income of industrialized countries.

State budget expenditures serve as political, social and economic regulation.

In the socially-oriented economy a significant place in the expenditure of the state budget deal with social stories: special benefits, education, health, etc. This reflects the main objective of fiscal policy - stabilization, development and adaptation of the existing socio - economic system to changing conditions. As the costs of domestic needs are usually identified budget subsidies to agriculture.

Government debt - the sum accumulated in the country over a period of budget deficits, net of accumulated budget surplus, the surplus. The term "public debt" applies only to government debt obligations, debt of local authorities are not included in it.

Internal and foreign (external) debt. Feature of the internal debt is the fact that citizens are borrowing from ourselves, becoming at the same time as tax debtors. Moreover, giving the government loan money, not all the charges against him to return with debt. To pay the interest the government uses taxes paid by all. A percent of the recipients are some of the most wealthy citizens - holders of bonds of government loans. As a result of problems in the distribution of national income. If government borrowing not spent on investment and consumption, that is eaten away, the situation will grow much worse (curtailment of investment projects, cuts in social spending, worsening social conflicts).

External debt is formed by borrowing from the State Governments and organizations abroad. This type of debt is the most onerous, because his service (the conditions for obtaining and maturity dates, interest rates) are more stringent and require more guarantees (political services, issuance of international securities, resource provision).