The national budget consists two parts : incomes and expenditures. Incomes include all the earnings of the govermment from various items. It the national expenditures are more that the govermment incomes, a national budget deficit arises. The national budget is perpared annually. A national budget plan is drafted by the Ministry of Finance based on the draft budget plans submjtted by all ministries and govermment instifutions. The nationl budget plan is approved at two levels, namely, the Executive body (through the Cabinet) and the Legislative body (the Parliament). The Parliament is particularly keen on finding out whether the allocations in the budget plan are appropriate.
The Parliament may decide to reallocate more money to a ministry that is going to undertake urgent and priority jobs. Priority expenditures (those that are given more funding) are determined by government based on the national situation. The government has to earn income to support its expenses under the national budget. The government earns income from a variety of sources such as income taxes. Individuals and companies pay taxes to the government every year or on certain periods during the year based on the amount of their income. Besides individual and corporate income taxes, the government may earn income from other sources, such as
Sale or rental of national assets like government factories or enterprises, public land, and forwsts;
Tax on use of roads, airport and post and etecommunication facilities;
Charges for government services such as issuance of government letters, marriage certificates, and licenses;
Fines imposed on violation of traffic rules or for causing environmental pollution, among others.
The national budget is the resource that the government uses to perform its function of providing services to the peo ple.