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If a country's fiscal revenue is less than its fiscal expenditure, is it still balanced?
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Suppose a four-sector economy, GDP is 5000, disposable personal income is 4 100, government budget surplus is 200, consumption is 3800, and trade deficit is 100. The demand is: savings, investment and government purchase. (Unit: USD 100 million).

Solution:

( 1)∫DPI = C+S,DPI=4 100,C=3800

∴S=4 100-3800=300

(2) The government budget surplus is 200, that is, the government savings (T-g) is 200.

∴i=s+t-g+kr-(x-m)=300+200+ 100=600

(3)÷GDP = C+I+g+(X-M)

∴g=gdp-c-i-(x-m)=5000-3800-600+ 100=700

Fiscal balance is an integral part of the overall social balance, and they are interrelated and interact with each other. Fiscal balance means an optimistic picture of a market economy. The balance of total supply and demand must be achieved through the use of monetary policy and fiscal policy. If the income is greater than the consumption expenditure, it means that the country will have a fiscal surplus; If consumption expenditure exceeds income, it will easily lead to fiscal deficit.

Classification of fiscal balance

_ 1, static and dynamic equilibrium: this classification is mainly judged by the change of time. In the short term, fiscal revenue or expenditure and consumption are counted as static fiscal balance; If it is in the future, making a financial forecast and studying the possible situation of economic development is called dynamic balance;

2. Local and global balance: This classification is mainly judged according to the research scope. If the financial department is taken out as an economic department alone, it will be divided from the local balance; If we look at the relationship between economic development and total social supply and demand, we should grasp the overall balance;

3. Balance between central budget and local budget: If we distinguish between central finance and local finance, we can better plan and adjust the national financial and economic situation.

I. Fiscal balance

The contradiction between fiscal revenue and expenditure is the basic contradiction of fiscal distribution. The finance of any country is faced with the problem of dealing with the relationship between fiscal revenue and expenditure at any stage of economic development. If a country's fiscal revenue and expenditure are roughly equal within a certain period of time (usually one year), we say that the country's finances are balanced.

Second, the fiscal deficit.

1. The fiscal deficit is the difference between fiscal expenditure and fiscal revenue. Because it is handled in red letters in accounting, it is called fiscal deficit.

2, _ general deficit (or balance) calculation caliber and classification

(1) caliber.

On how to understand fiscal balance, there is also a question about the calculation caliber of fiscal balance, or the calculation caliber of deficit (or balance). The calculation of fiscal deficit (or balance) can have the following two different calibers:

Deficit or balance = (current income+debt income)-(current expenditure+debt expenditure)

Deficit or balance = recurrent income-recurrent expenditure

The caliber for calculating the fiscal deficit or balance in the Yearbook of Government Finance Statistics compiled by the International Monetary Fund is as follows:

Fiscal deficit or balance = (total income+unconditional allocation)-(total expenditure+net increase in loans)

(2) Classification of fiscal deficit.

According to the relationship between fiscal deficit and economic operation, fiscal deficit is usually divided into two categories: structural deficit and cyclically adjusted deficit.