Free «Budget Comparison» Essay
Table of Contents
Historically it happened that the most effective way to satisfy the public interests is the creation of a state with the government, which has the aim to implement the needs of the society. In order to establish the effective management public officials need to accrue the financial resources. Thus, citizens are obliged to pay numerous taxes, and the government, in its turn, has to provide appropriate economic, social and political conditions for the society’s development. Nevertheless, it is obvious that the federal government cannot be aware of all needs of people who live in different locations and have unequal material prosperity (Patashnik, 2001). Due to this fact it was decided to divide the budget into three levels: federal, state, or local with their own incomes and outcomes. These three levels have similar features but different from one another significantly.
0 Preparing Orders
0 Active Writers
0% Positive Feedback
0 Support Agents
The similarities of the local, federal and state budgets
The budget of any level has several common features. The first is its aim. Each adult person has to pay taxes, dues, and additional disbursements to the treasury. This is the requirement which concerns every citizen of the state, and the line payment does not increase or reduce the necessity to transfer money to the government. Second feature is the authority of executives to allocate money for different purposes. The national budget is approved annually and provides the amount of funding of various sectors that is people do not have the opportunity what exactly they want to put up capital.
Another important feature includes the way the budgets are replenished. In this regard, several important remarks are to be accentuated (Calleo, 1992). The backbones of the treasury of any level are the deductions from the tax fund of the United States of America. To be more exact, each fund of the United States treasure system, either of the federal or local level is fulfilled by means of tax deductions imposed on the business entities located on the specific territory or individuals.
Hurry up! Limited time offer
Use discount code
Moreover, uniformity is the fact that the budgets are strictly regulated normatively. In other words, the tax authorities and those state officials vested with the obligation to dispose of the respective budget funds. The existing tax and other applicable legislation of the United States of America clearly define how and by whom the budget funds of the United States of America shall be utilized. The violation of the specifically prescribed procedures leads inevitably to the imposition of the specifically designated sanctions imposed by the respective state authorities.
The last, but not the least similarity between these types of budgets, the main fact that shall be considered by the researchers is the timely frames of the tax procedures conducted with the intent to fill the budgets respectively. In accordance with the existing tax legislation of the United States of America the authorized tax authorities are vested with the obligation to collect taxes in a strictly designated time periods.
The Differences between the State, Federal and Local Budgets
With regard to this issue, it shall be highlighted that the budgets differ primarily in the way they are filled and their spheres of use (Aros, 1996).
First and foremost, the primary source of income for the local and state budgets is the tax payouts of the taxpayers of the United States of America, while the federal system of budget can reasonably rely on the state enterprises procuring the revenues for the needs of the state bodies.
Another difference among the concepts is the fact that the budgets are utilized in the different spheres. In other words, while the federal funds are used primarily for the defense needs, the state ones are utilized to handle the needs of the law enforcement system and local to cover the administrative expenses respectively.