OGECHI AGBAI, week 5 assignment help

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THIS IS ONLY AN INTERPRETATION, FIVE SENTENCES AND A QUESTION IS ALL I NEED. TELL ME YOUR THOUGHTS, HAVE REFERENCES

Balanced budget which means a budget in which revenues are equal to expenditures (Mikesell, 2014). Thus, neither a budget deficit nor a budget surplus exists as the accounts balance. I stand for a balanced budget in a state or nation as this helps keep government expenditure in check and accountable. This fosters economic stability in a system and encourages the government and its agencies to be proactive in generating revenue for the state or nation, manage and limit unbudgeted spending and borrowing. Where a government intends to increase its spending, it has to source for avenues to increase and boost its revenue internally.

Where a balanced budget is not practised, the government borrows excessively from international community and plunge the country (Nigeria) into debt lasting more than 20 years to redeem. However, where a balanced budget is practised high priority areas are identified and revenue allocated to those priorities (Mucha, 2012). The government is stopped from overspending, looting is reduced as there will not even be enough to meet up with the priorities, and projects will be within the budget for that financial year. Although there are also recurrent deficits in a financial year, provision of the deficits will be considered within the budget. The essence is to control unnecessary national spending which leads to debt – increase in debt equals high taxes to citizens, high interest, lack of bargaining power, and high inflation rate which Nigeria suffers now.

In Nigeria presently I am of the view that expenditure should be reduced in other to accommodate her recurrent deficits of previous years. If this has been practiced over time Nigeria would have had reserves for essential expenditures, not be indebted to international nations and not plunge further into recession which has crippled the economy. To cut spending, the culture of unbudgeted expenditure has to gradually change, the government has to look inwards and reduce its spending by removing unnecessary recurrent of office equipments, yearly furnishing of same legislative apartments and offices in the budget.

The gains to a balanced budget are controlled expenditures, efforts channeled to increase in revenue, reduction in debt accumulation while losses may be that during emergency situations such as natural disasters or war etc., a government may not have available accessible funds to fully meet up with the needs of her citizens. Although, concerned private organisations, non profit organisations, and the international community may lend a helping hand in situations as this when they arise.

References:

Mikesell, J. L. (2014). Fiscal administration: Analysis and applications for the public sector (9th ed.). Boston, MA: Wadsworth.

Mucha, M. J. (2012). Budgeting for Outcomes: Key Findings from GFOA Research. Government Finance Officers Association

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Outline
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Introduction

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Conclusion

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References


Running Head: DOCUMENT INTERPRETATION

Document Interpretation
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Interpretation
It is clear that balancing the budget...


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