IT 1081C Lecture Notes - Lecture 18: Escheat, Capital Expenditure, Excise
Document Summary
A government budget is an annual statement of the estimated receipts and expenditures of the government over the fiscal year which runs from april 1 to march 31. The budget, by being an annual statement of the estimated receipts and expenditures of the government is a tool for the government to implement its various policies. A budget has 2 parts one part shows expenditure and the other part shows receipts. ie. the sources of financing expenditure. The difference between the receipts and expenditure is called deficit or surplus as the case may be. If receipts exceed expenditure it is called surplus. If the receipts fall short of expenditure it is called deficit. 4. 2 objectives of the budget: reallocation of resources: Private enterprises will always desire to allocate resources to those areas or production where profits are high. However it is possible that such areas of production(like production of alcohol) may not promote social welfare.
