Economy, asked by barikaru6372, 1 year ago

State and explain the basic concept of state budget

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Answered by Anonymous
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-:State Budget:-
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the annually compiled estimate (schedule) of a state’s forthcoming incomes and expenditures. The essence of any country’s state budget is determined by the economic system of the society and the nature and functions of the state.

In capitalist countries additional exploitation of workers occurs through the state budget. The development of the budget is subject to the elemental laws of capitalist production, and thus it emerges as merely a reference “schedule of the anticipated incomes and expenditures of the state for the current year” (K. Marx, in K. Marx and F. Engels, Soch., 2nd ed., vol. 9, p. 78). In accordance with the functions of the bourgeois state, a substantial portion of the state budget is used for nonproductive purposes (the militarization of the economy, the apparatus of oppression); thus the budget reflects the parasitic nature of the consumption of the national income. Because of the cyclical nature of the development of the capitalist economy, the state budget is marked by extreme instability. Slumps and crises bring declines in budgetary receipts while simultaneously producing increases in budgetary expenditures. The instability of the state budget is manifested in frequent deficits, which have become chronic in the period of the general crisis of capitalism.

The state budgets of contemporary imperialist states spotlight the essence of state monopolistic capitalism. The direct intervention of the bourgeois state in the economy and in the processes of production, distribution, and redistribution of the national income entails an increase in the role of the state budget. The proportion of the national income concentrated in the hands of the state and redistributed through the budget grows. Thus, at the beginning of the 20th century, the governments of the developed capitalist countries (the USA, Great Britain, the Federal Republic of Germany, France) accumulated 5-10 percent of the national income in their budgets, whereas by 1968 the amount had reached 30-45 percent. In a number of countries, between one-third and one-half of all investments in fixed capital are financed, directly or indirectly, through the state budget.

The main source of income for the budgets of the capitalist states is taxation: taxes constitute 85-95 percent of all budget receipts and fall essentially on the industrial and office workers, peasants (farmers), and petite bourgeoisie. Thus, in 1967 tax receipts accounted for 92.2 percent of all budget income in the state budget of France, about 95 percent of budget income in West Germany and the USA, and 91.2 percent in Great Britain. Nontax income (such as receipts from enterprises and from state properties) accounts for 5 to 15 percent. Although tax pressure is constantly intensifying, taxes are not sufficient to cover the increasing expenditures and budget deficits of the bourgeois states, which resort to loans and issue of paper money (
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