 | This article's lead section may be too short to adequately summarize the key points.(September 2019) |
The establishment of the annual budget of the Federal Republic of Germany is known as the German budget process.
| | This article's lead section may be too short to adequately summarize the key points.(September 2019) |
The establishment of the annual budget of the Federal Republic of Germany is known as the German budget process.
The primary purpose of the budget is to create an overview of the country's revenues and expenses for the following fiscal year or years. Since the budget is based on past expenditures, it is merely a prediction of the future which can lead to unexpected budget deficits as the fiscal year progresses. In the short term, such deficits are commonly financed by borrowing money which has led to the significant long-term debt of the German federal government.
The Bundestag passes the budget as an addendum to the annual or bi-annual budget act (Art. 110, Basic Law). Revenues and expenses are separated by ministries and other administrative entities.
Specific guidelines established by law govern the creation of the budget. Specifically, these are:
The federal budget for 2021 is €369.3 billion. [1] Wth total government spending of €1.76 trillion in 2021, the federal budget comprises only a fraction of total public sector spending in Germany. [2]
Germany's budget for the 2005 fiscal year can be found below, which also outlines the basic budget structure.
| Function | Description | Expenditures [note 1] |
|---|---|---|
| 01 | Federal President | 23,636 |
| 02 | Bundestag | 550,920 |
| 03 | Bundesrat | 19,952 |
| 04 | Federal Chancellor | 1,510,084 |
| 05 | Federal Foreign Office | 2,205,783 |
| 06 | Ministry of the Interior, Building and Community | 4,216,641 |
| 07 | Ministry of Justice and Consumer Protection | 338,592 |
| 08 | Ministry of Finance | 4,041,769 |
| 09 | Ministry for Economic Affairs and Energy | 37,974,665 |
| 10 | Ministry of Food and Agriculture | 5,106,957 |
| 12 | Ministry of Transport and Digital Infrastructure | 23,255,509 |
| 14 | Ministry of Defence | 23,900,000 |
| 15 | Ministry of Health | 84,409,880 |
| 16 | Ministry of Environment, Natural Conservation and Nuclear Security | 769,024 |
| 17 | Ministry for Family Affairs, Senior Citizens, Women and Youth | 4,571,691 |
| 19 | Federal Constitutional Court | 17,631 |
| 20 | Federal Auditing Office | 86,668 |
| 23 | Ministry for Economic Cooperation and Development | 3,859,093 |
| 30 | Ministry for Education and Research | 8,540,422 |
| 32 | Federal Debt | 40,431,841 |
| 33 | Support | 8,821,008 |
| 60 | General Financial Administration | (261,766) |
| Total: | 254,300,000 | |
An appropriation bill, also known as supply bill or spending bill, is a proposed law that authorizes the expenditure of government funds. It is a bill that sets money aside for specific spending. In some democracies, approval of the legislature is necessary for the government to spend money.
Within the budgetary process, deficit spending is the amount by which spending exceeds revenue over a particular period of time, also called simply deficit, or budget deficit; the opposite of budget surplus. The term may be applied to the budget of a government, private company, or individual. Government deficit spending was first identified as a necessary economic tool by John Maynard Keynes in the wake of the Great Depression. It is a central point of controversy in economics, as discussed below.
The government budget balance, also referred to as the general government balance, public budget balance, or public fiscal balance, is the difference between government revenues and spending. For a government that uses accrual accounting the budget balance is calculated using only spending on current operations, with expenditure on new capital assets excluded. A positive balance is called a government budget surplus, and a negative balance is a government budget deficit. A government budget presents the government's proposed revenues and spending for a financial year.
A budget is a calculation plan, usually but not always financial, for a defined period, often one year or a month. A budget may include anticipated sales volumes and revenues, resource quantities including time, costs and expenses, environmental impacts such as greenhouse gas emissions, other impacts, assets, liabilities and cash flows. Companies, governments, families, and other organizations use budgets to express strategic plans of activities in measurable terms.
A budget process refers to the process by which governments create and approve a budget, which is as follows:
In many states with political systems derived from the Westminster system, a consolidated fund or consolidated revenue fund is the main bank account of the government. General taxation is taxation paid into the consolidated fund, and general spending is paid out of the consolidated fund.
PAYGO is the practice in the United States of financing expenditures with funds that are currently available rather than borrowed.
The United States budget comprises the spending and revenues of the U.S. federal government. The budget is the financial representation of the priorities of the government, reflecting historical debates and competing economic philosophies. The government primarily spends on healthcare, retirement, and defense programs. The non-partisan Congressional Budget Office provides extensive analysis of the budget and its economic effects. It has reported that large budget deficits over the next 30 years are projected to drive federal debt held by the public to unprecedented levels—from 98 percent of gross domestic product (GDP) in 2020 to 195 percent by 2050.
A government budget is a projection of the government's revenues and expenditure for a particular period of time often referred to as a financial or fiscal year, which may or may not correspond with the calendar year. Government revenues mostly include taxes while expenditures consist of government spending. A government budget is prepared by the government or other political entity. In most parliamentary systems, the budget is presented to the legislature and often requires approval of the legislature. Through this budget, the government implements economic policy and realizes its program priorities. Once the budget is approved, the use of funds from individual chapters is in the hands of government ministries and other institutions. Revenues of the state budget consist mainly of taxes, customs duties, fees and other revenues. State budget expenditures cover the activities of the state, which are either given by law or the constitution. The budget in itself does not appropriate funds for government programs, hence need for additional legislative measures. The word budget comes from the Old French bougette.
Fund accounting is an accounting system for recording resources whose use has been limited by the donor, grant authority, governing agency, or other individuals or organisations or by law. It emphasizes accountability rather than profitability, and is used by Nonprofit organizations and by governments. In this method, a fund consists of a self-balancing set of accounts and each are reported as either unrestricted, temporarily restricted or permanently restricted based on the provider-imposed restrictions.
The Budget of the State of Oklahoma is the governor's proposal to the Oklahoma Legislature which recommends funding levels to operate the state government for the next fiscal year, beginning July 1. Legislative decisions are governed by rules and legislation regarding the state budget process.
The pattern of public expenditure and revenue in Costa Rica is typical of a middle income country. According to the CIA World Factbook, in 2012, central government revenue was US$6.949 billion, while expenditure was $8.937 billion. In recent years, expenditure has grown faster than income, producing deficits.
The Fiscal Responsibility and Budget Management Act, 2003 (FRBMA) is an Act of the Parliament of India to institutionalize financial discipline, reduce India's fiscal deficit, improve macroeconomic management and the overall management of the public funds by moving towards a balanced budget and strengthen fiscal prudence. The main purpose was to eliminate revenue deficit of the country and bring down the fiscal deficit to a manageable 3% of the GDP by March 2008. However, due to the 2007 international financial crisis, the deadlines for the implementation of the targets in the act was initially postponed and subsequently suspended in 2009. In 2011, given the process of ongoing recovery, Economic Advisory Council publicly advised the Government of India to reconsider reinstating the provisions of the FRBMA. N. K. Singh is currently the Chairman of the review committee for Fiscal Responsibility and Budget Management Act, 2003, under the Ministry of Finance (India), Government of India.
Party finance in Germany is the subject of statutory reports, which up to 35 parties file annually with the administration of the German parliament. Important questions pertaining to political party funding can be answered by analysing the data given in these financial reports: How much money is raised and spent by each party operating in Germany? What assets are at the disposal, which debts are on the books of German parties? For which purposes did parties spend their funds? From which itemized sources did a specific party collect its revenue? Who are the donors of major contributions and how much did each donor give during a specific calendar year?
Deficit reduction in the United States refers to taxation, spending, and economic policy debates and proposals designed to reduce the federal government budget deficit. Government agencies including the Government Accountability Office (GAO), Congressional Budget Office (CBO), the Office of Management and Budget (OMB), and the U.S. Treasury Department have reported that the federal government is facing a series of important long-run financing challenges, mainly driven by an aging population, rising healthcare costs per person, and rising interest payments on the national debt.
The Swiss federal budget refers to the annual revenue and expenditures of the Swiss Confederation. As budget expenditures are issued on a yearly basis by the government, the federal council, and have to be approved by the parliament, they reflect the country's Fiscal policy.
The federal budget of Russia is the leading element of the budget system of Russia. The federal budget is a major state financial plan for the fiscal year, which has the force of law after its approval by the Russian parliament and signed into law by the President of Russia. That the federal budget is the primary means of redistribution of national income and gross domestic product through it mobilized the financial resources necessary to regulate the country's economic development, social policy and the strengthening of the national defense. The share of federal budget accounts for a significant portion of the distribution process, which is the allocation of funds between sectors of the economy, manufacturing and industrial areas, regions of the country.
In Malaysia, federal budgets are presented annually by the Government of Malaysia to identify proposed government revenues and spending and forecast economic conditions for the upcoming year, and its fiscal policy for the forward years. The federal budget includes the government's estimates of revenue and spending and may outline new policy initiatives. Federal budgets are usually released in October, before the start of the fiscal year. All of the Malaysian states also present budgets. Since state finances are dependent on money from the federal government, these budgets are usually released after the federal one.
The General State Budget comprises the spending and revenues of the Spanish central government. The PGE is considered the most important act that a government enacts in a year and determine its policy in most areas, as well as being the basis on which the State's economy will move in that year.
Government spending in the United States is the spending of the federal government of the United States, and the spending of its state and local governments.