The Positive Consequences of Best Practices in Budget Balancing

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The direct positive consequence of best practices in budget balancing impacts taxes. If a balanced budget situation is achieved, taxes will not be raised.

Most times attaining a situation with balanced budget is almost impossible, and to achieve this, taxes are raised by the government. Having a balanced budget because of best practices creates an air of economic stability. This means, when spending is under control, there is a state of stability in the economy of the country.

A budget simply means regulating the revenues and expenditures with best practices over a fiscal year. A balanced budget therefore, is when revenues and expenses are equal. There are different types of balanced budgets; annual biennial and cyclical. Annual balanced budgets are evaluated every year as best practices. Similarly, biennial budgets are evaluated once in two years. Cyclical budgets are evaluated whenever the economic condition demands a balanced budget.

The positive consequences of best practices in budget balancing include the following:

No need to borrow money: When governments borrow money as a best practice to cover the gaps in revenues and expenses, the borrowed amount accumulates. Interest charges from lenders also accumulate because of best practices. Lenders buy bonds and foreign keep increasing their cost of borrowing over time. When a balanced budget is achieved through best practices, citizens do not need to borrow money over time and there will be no need to pay off loans in future.

Balanced Budget Can Be Changed Easily: Law makers have the opportunity to question expenses which are being made for best practices. This can serve as an opportunity to seek an increase in revenue from other sources within the budget or total spending. The balanced budget can then be changed easily by adding or removing an equal amount from a component of the total spending. This best practice is very easy. For example, if a new program which costs $20 million is added as part of a total spending. The budget officers must either add a $20 million source of revenue or simply eliminate spending $20 million.

There can be Surplus Balanced Budget: A surplus balanced budget can be attained through best practices. This has the advantage of coming into use when there is an emergency in the country. A surplus offers the government options to do something else with the money. For example invest in more best practices like; installing more public programs, paying off debts and offering tax rebates in order to stimulate the economy.

Best practices in budget balancing also means that the government can look forward to a good budget for the next fiscal year.

SPAudit 6.0.1 was aimed at ensuring compliance with SIIA recommendations. Some of those recommendations made included, centralized audits for the whole organization, improvement in recognition of other software applications and improvement in reporting system. The SPAudit 6.0.1 also assisted network managers in regaining control over their software assets. At the same time it eliminated chances of piracy.

Recently, SIIA has introduced usage of software metering for monitoring use and execution of other applications in the background. InvGate is an innovative software application, which ensures best practices in other applications. This software ensures two important best practices. These are;

The IT management tool in this new SIIA approved software facilitates tracking usage of important applications. For example the usage of databases, spreadsheets and other applications can be monitored. This ensures compliance with regulations surrounding software license agreements. For example; it ensures compliance with the concept of concurrency in users for best practices.

The IT management tools in InvGate are aimed at eliminating piracy of corporate software applications. Protection against piracy is an expensive best practice which costs business owners billions every year. At the same time, most organizations face problems upon failure to ensure compliance with license agreements. This has led to imprisonment of individuals for violating best practices for compliance with license agreements.  Therefore the SIIA has now made it possible to eliminate the risk of getting implicated because of license abuse.

Software metering being a centralized monitoring system cuts cost as a best practice. It helps organizations monitor the activities of all their employees from a single point. This makes it cost effective and at the same time ensures risk management and compliance. This has proved very effective for most IT organizations.

Therefore, using the SIIA approved software application is an important best practice.

Further reading: Corporate Governance | Audit | Performance Improvement

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