The concept of “budget” is more or less familiar, although very often there is a primitive idea of it as a sum of money, a treasury that can be spent this year. In fact, this is the planning of income and expenses for a certain period of time, most often for a year. It can be balanced, deficient or surplus.
In
Russia, the budget is developed by the Ministry of Finance, the State Duma approves in three readings. Every year we observe battles taking place between deputies of various factions in the process of its discussion. More often than not, a pre-planned surplus of the federal budget for the next year becomes
an apple of contention . Let's figure it out.
What is
a budget surplus? In simple terms, this is the excess of income over expenses. At first glance, this situation cannot but rejoice. If we earn more than we spend, then this is great! On the other hand, let's figure out what is behind such dry words as income and expenses. The former are formed mainly due to two articles: sales of natural energy carriers (oil and gas) and collected taxes. Where are the money spent? Everyone has heard such a phrase as “the budget sphere” - these are
non-productive spheres of society’s life, such as healthcare, education, the army, science, social protection, law enforcement, the sphere of government and the like. Thus, the answer to the question of what a budget surplus is becoming more distinct. In the conditions of our state, this means high taxes, a large number of sold natural resources and undeveloped, underfunded budget areas that are cut annually, despite the existing laws on the minimum interest that should be allocated for them. In this regard, deputy battles on this issue become clear.
Another logical question that arises among the population of the country is where the surplus money goes. There is the so-called “Stabilization Fund”, where surplus revenues from the sale of oil are accumulated. In the common people, this is money for a rainy day. As of July 1, 2013, the fund amounted to more than 84 billion dollars, approximately 4.2% of the state’s annual GDP. At the same time, the funds from this fund are placed in foreign assets, while the domestic economy lacks investment. On the one hand, of course, we need to think about the future, especially deficit - we well know what it is. The budget surplus is formed due to high oil prices, but is it worth it to sell in such quantities to keep income in the nest?
To illustrate this behavior, let me give you a simple parable. The owner has grown a good potato crop. He sold part of it to buy other necessary goods, to pay bills. Then he decided to sell more in order to save money for the future. In the end, in the middle of winter, he ran out of his own potatoes, he had to get a stash and buy his own potatoes from a neighbor, but more expensive. Thus, what is the budget surplus for this owner is understandable, these are idle funds. Although the example given is too simplified in comparison with the state, it shows the basic principle of the distribution of funds. It would be understandable if Russia had no problems with healthcare, education, and so on, but if there are any, the need for proficiency is very doubtful.
According to statistics, countries with a surplus budget are oil exporters. Developed countries, on the other hand, have a stable
budget deficit of several percent of GDP, which encourages governments to new searches for better forms of economic organization and management.
Thus, the deficit and surplus of the state budget are ambiguous concepts. In some conditions, these are positive factors, in others, negative ones. They cannot generally reflect the economic situation in the country and the standard of living of the population. To the question of what a budget surplus is for a country, we can answer - these are additional opportunities, but whether they are used or not, this is decided individually by each government.