Question

What role should individuals and groups (such as private citizens, unions, and special interest and lobbyist groups) play in shaping public budgets?

Answer 1

Public budget is the central government work of anticipating and expecting future expenses and revenues of the whole country. Such budget is prepared for a definite period, like 1 year.

Roles:

Citizens: (1) A public budget can get shape if citizens pay their taxes on time, because this is the main source of income of the government. (2) There should not be any accumulation of black money, since it affects in policy making.

Unions: Trade unions should not go for lockouts invariably, because it affects in national output (GDP); earnings of workers would be stopped which indirectly reduces tax earnings of the government.

Special interest: There are so many special interest groups, like a big aviation company, a big nationalized bank, etc. Suppose the aviation company wants not to increase air fares; the company influences the government. Such influence should not be done because of keeping the budget justifiable.

Lobbyist group: This is also a special interest group, suppose like a big nationalized bank. The bank should always obey the central bank’s guidelines and instruction, and should not go beyond of it. Public budget to be successful requires adequate money supply in the economy, which is the source of banks.