1. How are budgets used for a company or in government? What would your suggestions be to balance our economic budget? 2. After identifying suggestions for balancing the economic budget explain the importance of being able to identify various \"variances\" that may be identified? You may use any examples you want. Solution 1. How are budgets used for a company or in government? What would your suggestions be to balance our economic budget? Ans. A government budget is a government document presenting the government\'s proposed revenues and spending for a financial year that is often passed by the legislature, approved by the chief executive or president and presented by the Finance Minister to the nation. The budget is also known as the Annual Financial Statement of the country. This document estimates the anticipated government revenues and government expenditures for the ensuing (current) financial year. [1] For example, only certain types of revenue may be imposed and collected. Property tax is frequently the basis for municipal and county revenues, while sales tax and/or income tax are the basis for state revenues, and income tax and corporate tax are the basis for national revenues. The two basic elements of any budget are the revenues and expenses. In the case of the government, revenues are derived primarily from taxes. Government expenses include spending on current goods and services, which economists call government consumption; government investment expenditures such as infrastructure investment or research expenditure; and transfer payments like unemployment or retirement benefits. A status of financial health in which expenditures exceed revenue. The term \"budget deficit\" is most commonly used to refer to government spending rather than business or individual spending. When referring to accrued federal government deficits, the term \"national debt .