Expenditure

In: Social Issues

Submitted By 2012989899
Words 2240
Pages 9
I. Introduction According to S. R. Harvey (2004), Public Finance is the branch of economics that studies the taxing and spending activities of government. Public finance refers to government activities including taxing, spending, and budgeting. Government controls the public activities to ensure stabilization of economic. In order to maintain the economic stabilization in the country, there must be budget. Means that budget is important for the government to allocate the expenditure of the country. Budget can be defined as an estimation of income and expenditure for a set period of time. Furthermore, budget is a microeconomic concept that shows the tradeoff made when one good is exchanged for another. . According to Ekstein (1973), budget can been define as detail statement of income and expenditure that have been made or expected to be made. There are several function of a budget which is as a policy tool and instrument. Means that, budget is a tangible of a policy decision whereby budget is a means of establishing policy that been accomplished through the budget’s allocation of government resource. Besides that other function of budget is as a management tool whereby almost all government activities are funded through the budget and since the budget is a continuous process it is an effective tool for the public official because it provides an effective management device at every stage of government activity. Means that, any of the activity planned by government will be reflected based from the budget. As example, in Malaysian budget the governments have their annual plan that been proposed projected revenue and propose the expenditure. It consists of revenue and expenditure for 1 year as a short term plan. There is two type of budget which is operating budget and development budget. Besides that, in budget there are two component of budget which is public…...

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