Expenditures and Revenues Matrix and Summary Essay

Budgets be signifi faecal mattert in the cypher formulation process. Budgeting as a tool is the make-up of public form _or_ system of g all overnment (Smith & Lynch, 2004). Budgets exist at all directs of establishment, local, state, and federal. When describing revenue sources in public budgeting, it is weighty to describe the source of revenue, the source of the funding, importance of informed financial decisions, financial analysis tools workoutd, and nerveal financial analysis alternatives (University of Phoenix, 2012).What is a Budget?A budget is a plan of allocation of resources to accomplish and organizations objectives and goals for a particular(prenominal) center of time (Ganapati, n.d.). The budget gives a detailed analysis of how an organization will spend and receive money in a fiscal period.Why is a Budget Required?Accountability and prioritization are two reasons for a budget requirement. Accountability refers to the measureation of the public, which means that the government cannot tax more than required for government purposes (Ganapati, n.d.). Prioritization refers to allocating funds and resources to areas that require priority over another area (Ganapati, n.d.).Public BudgetsThere are different budget cycles at the local, state, and federal levels however, the major components of any budget, regardless of government level are revenues and expenditures. tax revenuesRevenues are funds raised by various entities. Revenue estimation is very important in local and state government, curiously in the planning and analysis phase because elected leaders must balance their budgets (Smith & Lynch, 2004, p. 47).Federal giving medication RevenuesGranted, the federal government collects the most amount of tax, state and local governments have more options on taxing. For example, the federal government taxes individual and corporate taxes, manufacturing taxes, social security tax (Federal Insurance Contributions Act, FICA), demesne or inhe ritance tax, and borrowings such as treasury bonds.State political science RevenuesState government also receives money with tax revenues as well as other entities. State governments receive money through intergovernmental transfers, individual and corporate taxes, sales taxes, fuel taxes, estate and inheritance taxes, peculiar(a) taxes on items such as alcohol and tobacco, lottery, state bonds, and licenses. Examples of states receiving taxes on licensing embarrass motor vehicles, hunting and fishing, firearms, motor vehicle operators, public utilities. topical anaesthetic Government RevenuesLike the federal and state governments, local governments of cities and counties also receive revenues through intergovernmental transfers, local taxes of property and sales tax, local bonds, school districts, businesses, and water management.Local governments differ in review and deciding of budgets. Many local budgets use line item for expenditures and revenues.ExpendituresExpenditures are funds for spending on particularized programs or capital projects. Expenditures include public programs, capital projects, debt servicing, and administration. Public programs can be education programs, welfare programs, medical programs, environmental programs, and housing programs. cracking projects include construction and reconstruction of highways, sewage, water, utilities, and building cost. Administration includes city and county employees.Decision-MakingManagers and administrators straight off must prepare to make difficult financial decisions. Analytical tools and processes are important in decision-making, planning, control, and analysis of financial budgets. Managers must identify dominance financial problems and formulate alternatives (American watchfulness Association, n.d.).fiscal DecisionsFinancial decisions vary depending on size of the organization, needs of the organization, location of the organization, financing options available to the firm (American Manage ment Association, n.d.).Analysis ToolsTechniques in financial analysis are significant in the financing and budgeting of an organization include long-term and short-term planning, security of costs and benefits, investment decisions, financing decisions, and dividend policies (American Management Association, n.d.).ConclusionMost budget approaches necessitate time, planning, decision-making, analysis, accountability, and prioritization at the local, state, and federal levels of government. Two major components at each level are revenues and expenditures, which is how each level of government earns and spends money.ReferencesAmerican Management Association. (n.d.). Financial decision-making. Retrieved from http//www.flexstudy.com/catalog/schpdf.cfm?coursenum=96088 City of Milwaukee. (2012). Retrieved from http//city.milwaukee.gov/ImageLibrary/User/crystali/2012budget/2012proposedbook.pdf U.S. Department of arbiter. (2012). Federal Bureau of probe financial report fiscal year 2011. Retrieved from http//www.justice.gov/oig/reports/2012/a1216.pdf Ganapati, N. (n.d.). Budgeting. Retrieved from http//www2.fiu.edu/ganapati/3003/budget.html Smith, R. W. and Lynch, T.D. (2004). Public budgeting in America, (5th ed.). speed Saddle River, NJ. Pearson/Prentice Hall. University of Phoenix. (2012). Course design guide. Retrieved from University of Phoenix, AJS522 Finance and Budgeting in Justice and Security Wisconsin Department of Public Instruction. (2010). Wisconsin Department of Public Instruction. Retrieved from http//dpi.state.wi.us/pb/pdf/combinedfair.pdf