Preparation of the budget is based on the principle of balanced and dynamic, meaning that the sector has always endeavored increase state revenues and expenditures in the sector sought savings.
Directing development funds to support activities that increase national production, which amount expenditures (spending) balanced by acceptance.
The detailed preparation of the state budget is based:
a. The principle of balanced and dynamic between revenues with spending
b. Savings are always increasing
c. The increase in tax revenues, intensive and extensive
d. Priority expenditures are important
e. Utilization of natural resources and human resources to the fullest.
Budget function
1. Stabilization function, the budget is expected to maintain stable cash flow and the flow of goods and for the maintenance of a high level of employment, the price level is relatively stable and the rate of economic growth with adequate
2. Allocation function, which may indicate targets and budget priorities and to allocate the factors of production are available in the community, so the community needs for public facilities needs will be met
3. Distribution function, which shows the distribution of funds to the state budget on various sectors
4. The function of economic growth and control inflation, which is through the size of the state budget to increase economic growth and controlling inflation.
The purpose is to guide the state budget revenues and expenditures in carrying out the state to increase production and employment, in order to enhance economic growth and prosperity for the community.
