Discuss and define the following items including their pros

Discuss and define the following items, including their pros and cons: • The “Appropriation” versus “Budget” approach to public budgeting. • Discuss and define what a “balanced budget” is. Debate the merits of a balanced budget. Note- Students will be expected to find and review a current article from websites or other media sources regarding a budget issue in local, state, or federal government. Posts should be more than a “book report”, and display proof of critical thinking. Please provide APA CITATION of any source used.

Solution

Balanced budget is also called as government budget in which, expenses are equal to revenues.

It exist when individual family\'s or government\'s revenues are ewual to its expenditures

Example

If person x earn 50, 000 dollars per year but he spends 60, 000 dollars per year, in this case x do not have balanced budget because total expenditure exceeds total revenue.

In personal life, it can possible but in government it can be a controversial , because politicians always argue with each other about funds spending and where to cut costs

But individual citizens to federal government, every one getting benefits from this balanced budget because this is useful to understand financial needs and they can get clear idea about total revenues and total expenses in particular period

Merits of balanced budget

1. With this approach, government can save money and avoid unnecessary interest payments. If government not following this approach, it has to borrow amount from others and had to pay interest to them

2. With using this, government can understand the relationship between total revenue and total cost, if any project\'s total cost exceeds total revenue, it can use another currect option

3. This approach will provide surpluses also in some projects, so government can use those surpluses gor other benefits of the people

2. Appropriation means separation of money tor some purpose. This approach adopted by a company or government in order to delegate money for some important works or important projects. This appropriate funds are useful for future benefits of an organisation or a country and government will use these federal funds each year in various projects which will useful to people. To this president signature required and project duration also very limited that is upto one year

Budget approach means planning for long term projects and it will approved by congress and investment also not consistent, , governmenthas to add funds further to complete project and this can be prepared based on previous experience and data