FINMAN E1 Flashcards
(163 cards)
generally considered to be an action plan for spending in the future according to the income expected.
budget
must therefore calculate the total amount of money they wish to spend on schools, hospitals, roads and salaries throughout the year.
government
arguably one of the most important public documents, as it is a translation of a country’s national development goals into annual spending plans.
national budget
are the medium through which policies are funded and executed and, in turn, activities to support selected priorities are delivered
budget
The _________, __________, and __________of the budget all require technical understanding of the PFM process.
development, implementation and reporting
T/F
In addition, as budget outcomes also may not depend on political as economic factors, it is also important to understand the politics of the budget cycle.
FALSE, it depends!
is also referred to as the government’s budget.
national budget
It is a plan for how the government spends taxpayers money, and how it pays for its activities, its borrowings, and the repayment of its borrowings. More technically, it is the estimated schedule of expenditures and sources of financing.
national budget
In general, a _________ is the financial plan of a government for a given period, usually for a fiscal year.
government budget
It shows what its resources are, and how they will be generated and used over the ____ period.
fiscal
is the government’s key instrument for promoting its socio-economic objectives.
budget
The government budget also refers to the ____,______,_________ of the National Government (NG). These resources are used to achieve its national objectives, strategies, and programs.
income, expenditures, and sources of borrowings
The ___________ known simply as the budget, refers to the totality of the budgets of various departments of the national government.
National Government budget
National Government budget includes the NG support to ___________ and _________. It is what the national government plans to spend on its programs and projects.
Local Government Units (LGUs) and Government Owned and/or Controlled Corporations (GOCCs).
It also states the envisioned sources of its funds, either from _____________ or from ________.
revenues or borrowings.
The common notion of a budget relates to its _________ side.
expenditure
Purpose of a National Budget
As such, a budget is prepared to prescribe the funding of government’s programs and projects, following national priorities, objectives, and strategies. This is the budget’s allocation function.
Components of A national Budget
resources side and the expenditures side.
pertain to the sources of funds that will finance budgetary expenditures.
Budgetary resources
budgetary resources are derived from?
1) Revenues or 2) Borrowings.
the primary source of financing the budget because these are the most stable sources of funds.
Revenues
T/F
Revenues consist of tax collection only
FALSE, tax and non-tax collections
are obtained from repayable sources, including loans secured by the government from financial institutions and other sources internal and external, to finance development projects and/or budget support.
borrowings
There are two subcategories of borrowings:
domestic borrowings and b) foreign borrowings.