Eelarvebilanssia

Eelarvebilanssia is a financial management concept used by governments to ensure that revenues collected are in balance with expenditures over a specific period, typically a year. It is a key component of public financial management and helps in maintaining fiscal discipline.

Eelarvebilanssia involves comparing the projected revenues and expenditures to ensure that there is no deficit or surplus in the budget. A deficit occurs when the government incurs more expenditure than it can cover with its available revenues, while a surplus happens when the government exceeds its expenditure and has additional revenue. Ideally, a balanced budget is one where the estimated revenues and expenditures are equal, leaving no room for deficit or surplus.

The goal of Eelarvebilanssia is to ensure that government spending is aligned with revenue collection, minimizing the need for external borrowing or creating fiscal excesses. By maintaining a balanced budget, governments can avoid the risks associated with excessive borrowing and promote economic stability.

In practice, governments use various tools to manage Eelarvebilanssia. These include setting realistic revenue and expenditure projections,-classifying revenues into various categories such as tax, non-tax, and external aid, and monitoring and adjusting these projections as necessary to reflect changes in economic conditions.

Eelarvebilanssia is an essential concept in public financial management, ensuring that governments spend their resources judiciously and sustainably. By maintaining a strict control on the government's finances, Eelarvebilanssia helps prevent fiscal deficits that may eventually burden future generations with debt repayment obligations.