Budget Functions

No state in the world can normallyexist without a state budget. What is this document and what are the functions of the budget? The state budget refers to the painting (balance sheet, estimate) of all monetary costs and incomes of the country. His role in the development of national economies has always been very ambiguous. By changing the level of taxation and spending, governments often regulate the volume of aggregate demand. For this reason, two types of budgetary policy are distinguished: restrictive (restrictive) and expansive (expansionary). The first means reducing government spending and increasing taxes, which leads to a weakening of inflation and the normalization of the economic conjuncture. The second involves increasing costs and reducing the level of taxation, thereby helping to overcome complex economic crises.

The revenue part of the budget is formed at the expense of suchincome, such as income tax, taxes on businesses and companies, social insurance contributions, indirect taxes, taxes on consumer goods, excises. The expenditure part of the budget satisfies the state's need for financial resources.
The functions of the budget are different, but one of the most importantis the growth of aggregate demand with the help of public procurement of services and goods. He also acts as the main instrument of state policy. The economic essence of the budget is that the state uses it as the main tool for carrying out social, economic policies and ensuring its full functioning. With the help of the budget, a large-scale redistribution of all incomes is carried out in order to achieve the greatest social justice. Almost half of the budget is directed to the social and economic needs of the state.

These costs are divided into two groups:
- social - includes the costs of payment of pensions, benefits, education, health care costs;
- economic - includes the cost of housingconstruction, regional development, energy, utilities, nature protection, manufacturing and extractive industries, transport, natural resources, agriculture, communications.

The normal state of the state budgetis considered an equality between its revenue and expenditure side. During the economic crisis, the budget, as a rule, has a negative balance, thus, there is a deficit in income. In periods of speculative boom, the state budget may have a surplus. In this case, a surplus is formed, that is, excess of revenues over budget expenditures. During crises, aggregate demand decreases, and during the speculative boom, inflation increases. The deficit of the state budget can be covered by issuing money, additional income, increasing external or internal debt.

The essence of the state budget is most evident in its functions. Since it is considered the main element of the entire financial system of the state, it fulfills such functions of the budget:
1. Distributive - concentrates funds through certain channels and redistributes them through the treasury bodies.
2. Control, which manifests itself in the implementation of control measures for the entire process of the formation and distribution of funds. It is carried out by the Treasury, the Central Bank, all tax authorities.
3. Redistribution of GDP.
4. Stimulating and regulating the economy.
5. Financial support of the budgetary sphere (state bodies).
6. Conducting social policy.
Additional budget functions:
- information function;
- institutionalization of public preferences;
- Regulatory.
The state budget is considered a legal act, which is the country's most important financial plan.