BASIC POSTULATES OF BUDGET POLICY ON THE EXAMPLE OF EUROPEAN UNION AND THE REPUBLIC OF SERBIA

The budget of the European Union is defined in the founding treaties, while basics of the budget system of Serbia are established by the Law on Budget System in Serbia. This Law regulates the planning, preparation and adoption of the budget of the Republic of Serbia, and the budget of territorial autonomies and local governments. Through the establishment of the Treasury of the Republic, the law is governing the execution of the budget, borrowing, issuing guarantees, debt management, budgetary accounting and reporting. In the budget revenue and expenditure must be balanced. The budget consists of general and special part. The general part of the budget contains a total volume of revenues and expenditures, permanent and current reserves and obligations of the budget execution. The specific part of the budget contains a detailed schedule of assets (expenditure) by the holders and purposes, and users of resources can make commitments up to the amount of funds provided in the budget. To be able to plan a single source income, it is necessary first to establish the tax balance. This balance should include the number of taxpayers, tax base, tax rate and exemptions.