4. Types of Government Expenditures
– Purchase of goods and services
Beside financing daily operation, government purchase on good and service can also be used as a tool stimulate economy.
– Transfer of income/Transfer payment
It is a money transfer to individuals/families, as for welfare or social security benefits and not reckoned when calculating the national income since it is only transferred rather than paid for purchasing good or service.
– Interest payment
Interest payments resulted from government’s outstanding debt, including long-term bonds, long-term loans, and other debt instruments to domestic and foreign residents/agencies.
5. Type of Budget Document
– Unified Budget
It is a combination of on-budget and off-budget items. It depends on nation budget characteristic. In the United States, a unified budget is consolidation of federal government’s receipts and outlays from federal funds and the Social Security Trust Fund.
– Regulatory Budget
Governments account for regulatory expenditures in a similar way to fiscal expenditures. Regulatory costs refer to the broad direct and indirect costs to regulation, including financial costs (taxes, fees), administrative costs (reporting requirements), substantive compliance costs (investment, training) and indirect costs (market structure, consumption patterns)