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General Budget: Preparing and Tracking Revenues and Expenses

الشؤون المالية
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Public Budget: Managing Revenues and Expenditures for Financial Stability

Introduction
The public budget is not merely a collection of numbers written in government tables—it is the mirror that reflects the financial position of a state or organization and the roadmap that defines where money will go and where it will come from.
It is the tool that translates economic plans into tangible financial reality and ensures a balance between revenues and expenditures to achieve growth and economic stability.

Without an accurate and well-prepared budget, financial management becomes like a ship sailing without a compass—vulnerable to crises and fiscal deficits.

1. What Is the Public Budget?

The public budget is a detailed financial plan prepared for a specific period (usually one fiscal year) that includes estimates of expected revenues and expenditures during that time.

It serves as the official document that defines how financial resources will be managed and how they will be distributed among different sectors and activities.

In simple terms, the budget is the plan through which a government or organization manages its money wisely—achieving objectives with minimal cost and maximum efficiency.

2. Components of the Public Budget

The public budget consists of two main parts:

1. Revenues
These represent all financial resources received by the state or organization, including:

  • Taxes and government fees.

  • Returns from public investments and projects.

  • Grants and financial aid.

  • Revenues from exports or natural resources (such as oil and minerals).

2. Expenditures
These are the funds spent to meet the needs of the state or organization, including:

  • Salaries and wages.

  • Development projects and infrastructure.

  • Education, healthcare, and public services.

  • Debt repayment and interest.

By comparing revenues with expenditures, the financial status of the budget can be determined:

  • Balanced Budget: Revenues = Expenditures.

  • Surplus Budget: Revenues > Expenditures.

  • Deficit Budget: Revenues < Expenditures.

3. Stages of Budget Preparation

Preparing a public budget is a precise process that passes through several organized stages:

1. Planning and Preparation Stage
Financial data are collected from government agencies or departments, and expected revenues and required expenditures are estimated.
At this stage, priorities are set according to national or organizational goals.

2. Approval Stage
After drafting, the budget is reviewed and approved by higher authorities (such as the Cabinet or the Board of Directors).

3. Implementation Stage
Funds are spent by the concerned departments in accordance with the approved allocations, while adhering to financial rules and regulations.

4. Review and Monitoring Stage
At the end of the fiscal period, actual results are compared with planned figures to identify variances and analyze their causes.

4. Importance of the Public Budget

The budget is more than a financial document—it is a strategic tool that helps to:

  • Ensure financial discipline and the efficient use of public funds.

  • Direct resources toward the most important and impactful sectors.

  • Promote social justice through balanced resource distribution.

  • Strengthen transparency and accountability to citizens and investors.

  • Provide a foundation for sound economic decision-making.

5. Types of Budgets

Budgets vary according to objectives and methods of preparation. The most common types include:

  • Traditional Budget:
    Classifies expenditures according to items (salaries, equipment, services, etc.).

  • Program-Based Budget:
    Focuses on goals and outcomes, linking spending to actual project performance.

  • Zero-Based Budget (ZBB):
    Starts from zero each year—no expenses are assumed to continue unless their necessity is proven.

  • Flexible Budget:
    Allows for adjustments in spending during the fiscal year based on economic changes or unforeseen circumstances.

6. The Role of Technology in Modern Budgeting

In the digital era, budgets are no longer prepared using traditional paper-based methods but through advanced electronic financial systems.
Key technological developments include:

  • Artificial Intelligence (AI): Analyzes financial data and predicts deficits or surpluses.

  • Blockchain Technology: Ensures transparency and prevents manipulation in financial reporting.

  • Cloud-Based Systems: Enable real-time tracking of budget execution from anywhere.

  • Digital Dashboards: Provide interactive and easy-to-understand visualizations of financial performance.

These tools have made tracking revenues and expenditures more accurate and efficient, significantly enhancing financial management performance.

7. Challenges Facing Public Budgeting

Despite significant advancements, there are still several challenges in preparing and implementing budgets, such as:

  • Fluctuating oil and natural resource prices that affect revenues.

  • Global economic pressures and inflation.

  • Lack of transparency or weak financial oversight in some institutions.

  • Unplanned or wasteful spending.

  • Challenges in adopting digital transformation in government financial systems.

Overcoming these challenges requires sound financial governance—based on precise planning, continuous review, and full transparency.


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