SIMONA MARIA POP
THE PUBLIC SOCIAL SECURITY BUDGET
The budget of a government is a summary or plan of the intended revenues and expenditures of that government. In some countries, such as the United States, the budget is mainly prepared by the legislature, in others it is prepared by the government.
Budgets are an essential element in the planning and control of the financial affairs of a nation or business and are made necessary essentially because income and expenditure do not occur simultaneously.
Social security defines a system of government-financed income transfers designed to effect a distribution of income considered desirable. The main component of most social-security systems is welfare benefits, given to those in poverty. This can be done in two ways:
- by identifying groups that are likely to be poor and giving benefits to them (e.g. the unemployment, the elderly and the disabled) irrespective of their actual income.
- by identifying, through means tests, people who are poor. This approach is a less expensive method of eradicated poverty, but leads to the problem of poverty trap.
State budget is a fundamental of Public Finance. It can be approached legally and economically.
From legal perspective, the budget represents the stipulation and the authorization of the state yearly incomes and expenditures. It is compulsory and it must be passed by the Parliament.
It represents an official document which reflects the provision of the public financial resources and it is compiled annually. The state budget laws are influenced by the political, economical and social beliefs specific to a certain period of time.
As an official document, the state budget emphasizes the approved levels of the next year expenditures and the ...