Fiscal changes have less to do with planned expenditure and more to do with decisions to modify the budgetary deficit (or at times surplus) in the interest of demand management (i.e., management of aggregate demand). We had to make cuts in the defence budget. A budget is a microeconomic concept that shows the trade-off made when one good is exchanged for another. Copyright © 2020 MyAccountingCourse.com | All Rights Reserved | Copyright |. Definition: In the general sense, the budget is described as a precise statement, representing a financial estimate of income and expenditure of the government for a certain period. This is known as deficit financing (spending). Budgeting of capital expenditure is an important factor in the management of a […] A budget (derived from the old French word meaning purse) is a quantified financial plan for a forthcoming accounting period. It aims at making optimum utilisation of the capital and other resources of the organization. The classical economists argued that the government should operate a policy of balancing the budget, thereby allowing the economy to respond in its own way without govern­ment intervention.

Learn and know the meaning of these Budget terms by their definitions here at The Economic Times. Your email address will not be published. The operation of a budget deficit (deficit financing) as a tool of fiscal policy enables the government to influence the level of aggregate demand (which is sum of consumption investment and government spending on currently produced goods and services) and employment in the economy. The budget for... | Meaning, pronunciation, translations and examples There's nothing very complicated about this; in this usage, a budget line is one of the lines in the budget, with the service or good to be purchased named and the cost quantified. plant utilization budget, direct material usage budget, factory overhead budget, production cost budget, cost of goods sold budget, selling and distribution cost budget, administration expenses budget, etc. A budget is an estimate of income and expenditure for a future period as opposed to an account which records financial transaction. That portion of deficit which cannot be covered by borrow­ing (through the issue of Treasury Bills and long-term gifts) is covered by borrowing money from the central bank against foreign exchange reserves. The budget surplus might be adjusted to take account the effects of the economic cycle. In terms of the bottom line—or the end result of …

A huge budget surplus of over £16 billion was recorded. Economics definition is - a social science concerned chiefly with description and analysis of the production, distribution, and consumption of goods and services. Definition of Budget constraints. public administration. Thank you, Your email address will not be published.

Issues Involved. This seems almost too obvious to bother writing or reading about. public administration: The classical definition. The budget line is an elementary concept that most consumers understand intuitively without a need for graphs and equations -- it's the household budget, for example. In cost accounting, budget means a quantitative statement, prepared before a particular period to serve as an estimate of future receipts and disbursements. In addition, the budget has developed as a principal tool in planning future programs, deciding priorities, managing current programs, linking executive with legislature, and developing control and accountability. Share: Share on Facebook Share on Twitter Share on Linkedin Share on Google Share by email. Welcome to EconomicsDiscussion.net! In his state­ment the Finance Minister reviews economic conditions and government expenditure for the past year, makes forecasts for the coming year and announces changes in taxation. It is so useful for my studies. In business finance: Budgeting.

It may even allow…. Hospital caterers have a budget of about £20 per person per week. In the process of formalization, the concept can be expressed as a mathematical equation that can be applied generally.

Understand the Economic Concept of a Budget Line. Government borrowing in excess of the amount required to promote long-term growth and to control business (trade) cycles will ultimately result in inflation.

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