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The main component of most social-security systems is welfare benefits, given to those in poverty. This can be done in two ways:
- by identifying groups that are likely to be poor and giving benefits to them (e.g. the unemployment, the elderly and the disabled) irrespective of their actual income.
- by identifying, through means tests, people who are poor. This approach is a less expensive method of eradicated poverty, but leads to the problem of poverty trap.
State budget is a fundamental of Public Finance. It can be approached legally and economically.
From legal perspective, the budget represents the stipulation and the authorization of the state yearly incomes and expenditures...
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