United Kingdom Annual Budget

Annual Budget is the key financial document of the country that presents the income and expenditures of all departments, ministries, services and state programs for the forthcoming year.

The budget document for the coming year is published in the autumn. It is developed by the Treasury. Budget revenues are mainly formed of taxes and customs duties, and public sector expenditures represent the amount of funds needed to finance the activities of ministries and departments, in accordance with the approved state policy.

The UK fiscal year ends on April 5th, so the annual budget covers the period from April 1st to March 31st. Planned public sector expenditures are approved in the Parliament by voting. Budget decisions usually correlate with initial applications. Before the budget is adopted, departments send their applications for funding to the Treasury. After the adoption of the budget, the government can provide additional assessments and make amendments to the budget during the current financial year.

Excess of budget spendings over income forms a budget deficit; the reverse situation is seen as surplus. The approved annual budget of the UK, as a rule, does not have a serious effect on the pound sterling quotes.