Questions and Answers on US Economy and Fiscal Budget

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Competitive Analysis Bus Cycles Name Institutional Affiliation Date: Competitive Analysis Bus Cycles What is the largest source of revenue for the U.S. government? What is the largest expenditure for the U.S.? Do you think these budget priorities are correct? Explain. The federal government of United State usually collects taxes in order to run the various public services. As the citizens of the state and policy makers dwell much on decisions made that concern revenue and expenditure, it is very crucial to find out how the government uses the revenue it collects. In the financial year 2011, the federal government spent 24% that is part of Gross Domestic Product for the country: it is estimated to be $3.6 trillion in figures. As the level expenditure for 2011(which is a share of the GDP) increases because of the economic downtown, the planning of the budget is closely related to those of previous years. The federal government financed $2.2 trillion of the $3.6 trillion, and by the Federal Reserve, $83 billion of profits was in excess. $1.3 billion came from borrowing and was to be covered by money from future taxpayers. International security assistance and defense: 20% of the total budget, which amounts to about $718 billion, in the year 2011, was used to finance for international activities that are security and defense related. This big spending gives an outline of the cost accustomed to activities that are security-related and the department of defense. About $159

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