Essay On The Federal Budget Process

Budget preparation is a process with designated groups and individuals having defined responsibilities. According to Irene S. Rubin “ The public budget process mediates between organizations and individuals who want different things and determines who gets what out of the budget.”1The Government set up an annual budget that includes people perspectives, opinions , accountability and than determine how the budget will get divided based on protected interests. Moreover, Public budgeting determines how government spend money, provide necessary resources , and limit government expenditures to prevent overspending.

The federal budget deficit is a much discussed and little understood subject in American politics. The current recession has dramatically decreased tax revenues, driving the United States federal government to increase spending in an attempt to stabilize the economy. As a result the current federal deficit is at over $1.3 trillion dollars. This is approximately $47,754 per U.S. citizen or $137,552 per U. S. taxpayer (U.S. Debt Clock: Real Time, 2012).

The government needs to take more caution creating the federal budget. Edwards stated that “Consider Canada's experience. In the mid-1990s, the federal government faced a debt crisis caused by overspending, which is similar to America's current situation. But the Canadian government reversed course and slashed spending from 23 percent of GDP in 1993, to 17 percent by 2000, to just 15 percent today. The Canadian economy did not sink into a recession from the cuts as Keynesians would have expected but instead grew strongly during the 1990s and 2000s."

The government has the Autumn Statement in October where the government announces its spending plans and the Budget in March which states any tax changes. The budget provides private businesses tax changes which will directly affect them. The autumn statement will indicate the amount of money being spent which could affect the changes in the budget in March.

The federal budget is known as the notorious economic tank from which money is distributed to various programs. The money used every fiscal year, which begins October 1st and ends September 30th the next year, belongs to the people. The government raises this money through taxes and they spend it on national defense, Medicare, and social security. The federal budget is an exercise in making choices, and those options will certainly affect individuals living in the U.S. These choices cause debt to pile up on the government, who is struggling to make it disappear. The deficit and debt of a government gauges how well it is being run and how well it has been run in the past. According to The Economist the national debt is the total

The U.S. government budget is made up of different content that present financial proposals from the President with advised importance for ration of revenue from the local government. More importantly, the budgets focus being the budget year. This is the next budgetary year where changes would have to be made by Congress. The budget not only covers the present year, but the next 4 years after the budget year to be able to resonate the outcome of budget verdicts past the extended term. This includes funding zones given for the present year in order for the reader to be able to make a comparison of Presidential budget propositions and the newest executed zones. Here the President starts the lengthy procedure of creating a budget by means of policy guidelines, at least 9 months prior sending his budget proposal off to Congress. Following the guidelines, the Budget Office along with Federal agencies create a policy for the present and future budget years.

The federal government and states each have budgets that outline the amount of money that will be collected from taxes, how much will be spent in revenues, and what programs will receive money allocated to them from these expenditures. Every fiscal year, the federal budget and state budgets are reset so that they start from October 1st until the end of September of the following year. The federal government’s budget contains allocations for health care, pensions, education, defense, and welfare. The State of Colorado’s budget contains expenditures allocated to education, health care, pensions, protection, transport, and welfare (Chantrill, 2015). The

Cutting their funding will lead to more health issues for people who used to go to them, thereby increasing costs on the public services providing by the government. It will end up costing more than actually not cutting their funds.

Fiscal Policy can be explained in many ways, for example. Fiscal policy is the use of the government budget to affect an economy. When the government decides on the taxes that it collects, the transfer payments it gives out, or the goods and services that it purchases, it is engaging in fiscal policy. The primary economic impact of any change in the government budget is felt by particular groups—a tax cut for families with children, for example, raises the disposable income of such families. Discussions of fiscal policy, however, usually focus on the effect of changes in the government budget on the overall economy—on such macroeconomic variables as GNP and unemployment and inflation.

No one decides on the total amount the federal government will spend. Instead, legislative bills that determine the total amount of spending are divided up among fifteen separate committees in the Senate and seventeen committees in the House of Representatives. The Appropriations Committee has jurisdiction over non-entitlement programs (spending varies year to year based upon spending authorized by Congress), which covers one-third of total federal spending. The remaining two-thirds is made up of entitlement programs (spending authorized by permanent laws), which are handled by other standing committees. The agricultural committees have authority over farm price supports, food stamps, and other rural programs. The tax-writing committees in the House and Senate are responsible for Social Security and Medicare. The House Energy and Commerce Committee has jurisdiction over Medicaid.

The first step to creating the federal government budget is the President submits a budget request to Congress. The executive branch gets requests from the federal agencies saying that different things and projects need money or that they don’t need money. So basically they discuss what project is more important. Yet these are all only proposals so they can either be accepted or denied depending on what the people think the country needs.

Are we evenly slicing the pie in the correct areas? The federal budget consists of three pies we can call “The big guys” “the middle five” and the little guys” each pie is divided into five sub categories. Now do not be fooled even though the names sound like they differ in importance they are all actually equally important. Now in order to see if the pies are being truly sliced appropriately we need to dig more in depth into each pie in order to reach the sub categories and actually be able to tell whether they are being sliced evenly. Now are the “the pies” or budgeting actually important? Yes budgeting is very important if not would the president of the united states Donald J Trump say this to a CNN reporter? "We're going to be spending

I again, explored and studied the financial plan of my local government, Albany-Dougherty County, GA. Dougherty County was formed from Baker County through an act of the Georgia General Assembly (Dougherty County Finance Department, 2015) in 1853. Dougherty County is named after Judge Charles Dougherty a judge out of Athens, GA. Through review of the 2010 census, I discovered that there is approximately 326 square miles of land in the county and population of 94,565 people (City of Albany, GA, 2015). Albany-Dougherty County is considered an innovative area in the state having several leading industries that moved here. Those industries include Proctor & Gamble, Miller Brewing Company and Albany Marine Corps Logistics Base (Dougherty County Finance Department, 2015). I examined the last three years, 2013, 2014 and 2015, budgets of particular note of the revenue sources, balances, surpluses, and deficits of the budgets. Assessing the internal and external opportunities or challenges of revenue sources. Looking for goals and priorities of the goods and services. Evaluating the budget stabilization measures and analyzing the financial policy as it leads to alternative taxes.

5). When the government revenue is higher than government spending there is a surplus, but when government spending is higher than revenue it is called a deficit. That is how a budget deficit comes into existence. To deal with a budget deficit the administration can cut down on its expenditures and/or increase revenue generating activities like collecting more taxes. (class textbook)

Government has divides the fund based on the component of program such as function, activities and objectives. From this view, we can see that, every program, activities and objectives that government has implemented are involved with their own specific budget. For instance, Budget 2016. The function of Budget 2016, the government was allocating the budget to the education, entrepreneurs, agriculture, defends and many more. The government must implement specific objectives in term of the programs in order to ensure the program has achieved the target. In addition, funds that allocate are based on situation and do not rigid. Its means, the government can spend the budget according to priority. For example, if the budget is allocate for the infrastructure development. However if there any natural disaster happen such as flood, the government need to spend the allocation of money to the flood victim. Besides that, the budget spends based on function and priority of the