Expenditures and Revenues Matrix and Summary Essay

Budgets atomic number 18 significant in the reckon formulation process. Budgeting as a tool is the musical composition of unrestricted policy (Smith & Lynch, 2004). Budgets exist at all trains of political sympathies, local, earth, and federal. When describing revenue kickoffs in public figureing, it is historic to describe the source of revenue, the source of the funding, importance of informed monetary decisions, financial outline tools consumptiond, and organizational financial outline alternatives (University of Phoenix, 2012).What is a Budget?A cypher is a plan of al situation of resources to put to death and organizations objectives and goals for a specific amount of era (Ganapati, n.d.). The budget gives a detailed compendium of how an organization will spend and fetch silver in a fiscal period.Why is a Budget indispensable?Accountability and prioritization atomic number 18 two reasons for a budget requirement. Accountability refers to the taxation of t he public, which means that the government cannot tax more than need for government purposes (Ganapati, n.d.). Prioritization refers to allocating funds and resources to areas that require antecedence over another area (Ganapati, n.d.). mankind BudgetsThere are different budget cycles at the local, plead, and federal levels however, the major components of any budget, regardless of government level are revenues and expenditures.RevenuesRevenues are funds raised finished various entities. Revenue estimation is genuinely important in local and state government, particularly in the planning and analytic thinking phase because elected leaders moldiness balance their budgets (Smith & Lynch, 2004, p. 47). national presidency 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 unified taxes, manufacturing taxes, social security tax (Federal insu rance Contributions Act, FICA), estate or hereditary pattern tax, and borrowings much(prenominal) as treasury bonds.State Government RevenuesState government withal bring ins money through tax revenues as wellspring as other entities. State governments receive money through intergovernmental transfers, individual and incarnate taxes, sales taxes, fuel taxes, estate and inheritance taxes, special taxes on items such as alcohol and tobacco, lottery, state bonds, and licenses. Examples of states receiving taxes on licensing overwhelm motor vehicles, hunting and fishing, firearms, motor vehicle operators, public utilities.Local Government Revenues identical the federal and state governments, local governments of cities and counties also receive revenues through intergovernmental transfers, local taxes of post and sales tax, local bonds, school districts, businesses, and urine management.Local governments differ in follow and deciding of budgets. Many local budgets use line it em for expenditures and revenues.ExpendituresExpenditures are funds for spending on specific programs or capital of the United States projects. Expenditures include public programs, capital projects, debt servicing, and administration. Public programs can be teaching method programs, welfare programs, medical programs, environmental programs, and caparison programs. Capital projects include construction and reconstructive memory of highways, sewage, water, utilities, and building costs. Administration includes city and county employees.Decision-MakingManagers and administrators at once must(prenominal) prepare to make problematic financial decisions. Analytical tools and processes are important in decision-making, planning, control, and analysis of financial budgets. Managers must identify potential financial problems and give voice alternatives (American way Association, n.d.).Financial DecisionsFinancial decisions falsify depending on size of the organization, needs of the organization, location of the organization, finance options available to the firm (American Management Association, n.d.).Analysis ToolsTechniques in financial analysis are significant in the funding 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 involve time, planning, decision-making, analysis, accountability, and prioritization at the local, state, and federal levels of government. dickens 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/ compile/schpdf.cfm?coursenum=96088 City of Milwaukee. (2012). Retrieved from http//city.milwaukee.gov/ImageLibrary/User/crystali/2012budget/2012proposedbook. pdf U.S. division of umpire. (2012). Federal Bureau of Investigation financial publish 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.). Upper Saddle River, NJ. Pearson/Prentice Hall. University of Phoenix. (2012). physical body 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