BUDGET BALANCING EFFECT ON SOCIAL CARE

Budget Balancing Effect on Social Care

Budget Balancing Effect on Social Care

Introduction

The main purpose of this paper is to make an analysis on the challenges of government's efforts on the delivery of social care as a result of balancing the budget. Drawing up a balanced budget is the process of finding an optimal balance between financial performances. Manage these financial indicators may be by changing the operating budgets. This is not to rely solely on the profitability index, or only on the value of cash flow: first, the company faces cash shortages and the constant shortage of funds, the second - no real profit in the apparent availability of funds.

Discussion

In the case when government observes that there is some problem in the economy of a country and the country is going in budget deficit, then the government tries to maintain this deficit through balancing the budget. In order to balance the budget, government adopts different measures (Ahmad, 2009, p. 67). These measures have effect on different areas, and social care is one of them. Social care is an area that helps in supporting the social groups. There are different sectors in the social cares including health, education and judiciary. There is a great role of government's spending on the social care. Therefore, when a country faces the fiscal deficit, then its government tries to maintain this deficit. In order to maintain the deficit, the government limits it's spending, which in result affects the delivery of the social care (Kautto, 2002, p. 53).

The main purpose of the social care is to support different factors in order to facilitate the people. Therefore, it needs a huge amount of funds to facilitate the needs of the needy people and help them financially. For this purpose, these social care agencies need the funds from the government. In case of government's efforts on balancing the budget, the government restricts its spending that affect the delivery of the social care.

The federal government spends a little over 3 billion (in English trillion) dollars and takes a little more than 2 billion dollars in revenue a year. Balancing the budget would force the government to cut spending by about one third. Although it sounds like a big cut, it would only reduce spending adjusted for inflation. Thus, this will affect the social care sectors, as the cut in spending will as a result, cut the expenditures on the social care.

There are many functions of social care sector (Daly, 2000, p. 281). These functions include providing facilities to the different areas like health, education and judiciary. All these areas need heavy funding from the governments. They need finance and funds from both the private and public sector. The observations show that private factors do not support much to the social care and social care organizations not take many funds from the private factors. Therefore, they are very much dependent on the public sector which means the government of that ...