Friday, October 18, 2019
Creating Balanced Budget Assignment Example | Topics and Well Written Essays - 750 words
Creating Balanced Budget - Assignment Example If the taxes are increased, then there will be inflated figures and the imbalance will continue being experienced. One of the ways of implementing this step is that all federal expenditure saves for the payments on the debts need to be frozen to lower levels such as less than 10% of the preceding year (Smith & Hou, 2013). Therefore, reduction of the expenditure as described is deemed the best method of reducing the negative balances in the budget. Areas Requiring Increase and DecreaseFrom an analytical perspective, the greatest problem in the budget starts at the point where expenditures are mentioned. In this case, all the values, both revised and actual are negative (Heun, 2014). That means that this is the section that needs to be seriously trimmed. Strict balanced budget requirements need to be instituted so that excess spending is restrained as much as possible. Consider the total expenditure for the year 2013 operating at -3803.30. It means much of the expenditure was borrowed and this creates more debt year after year which is not good for the future of the country and the citizens. This is realised through the government having a specified rate of expenditure for every department listed in the budget. If 10% cut is imposed on all sections, then it means that all the expenses will be cut by the same rate (Smith & Hou, 2013). The other section that needs to be looked at is the revenues section. In this case, it is worth noting that the entire revenue section depends on taxes and duties.