Description
ADM 626 Week 2 dq
Financial costs in a country are well managed once a budget is in place. Expenses are inevitable, and it is important to prioritize what necessary to the least needed is spending. Revenue sources are diverse as citizens are the largest taxpayer to the government. Tax brackets cover business and every form of consumable that will increase tax bracket. A budget building is necessary as it provides the platform to spend money to make a return on investment efficiently. The paper discusses the impact of revenue sources and expenditure on budgeting.
Revenue Sources
The government is mandated to manage cash for the society prudently hence it is expected to collect revenue to have the resources at its disposal. The sources of income include individual income tax. Tax from citizens must be filled according to the tax bracket depending on the income an individual receives. The federal government charges the amount differently depending on the income level. Companies that are profit oriented are obligated to pay tax to the government to sustain infrastructural and other development support. Taxes from consumable fill the gap to increase the tax bracket as it is known as exercise tax (Larkey, 2015).
Impact Of Revenue Sources And Expenditure On Budget Building
The budget will be created based on the income the federal government has collected in the form of tax. Sources of income determine the budget size and the type of expenditure the government will have. A society that is prompt to pay its taxes on time provides the leverage to the government in having readily available cash to increase its expenses and pay for them in due time. Reliable revenue sources assure the government of cash hence a strong budget that is long term on development (Larkey, 2015).
Conclusion
Revenue sources are a determinant to how the budget will be managed regarding managing expenses. Higher income bracket should be sought after to manage the growing needs during budgeting.