Presidents budget

What is a budget?

https://www.whitehouse.gov/omb

What kind of money do you make?

Revenue/ receipts

• Money that is coming in

What kind of things do you spend

your money on?

Outlays/ bills

Money that is going out

Money that is due or owed

IS THERE EVER

ENOUGH?

do you plan for the future?

are you prepared for?

What is the Federal Budget?

• The Federal budget is the following

1. A plan

• For how the government will get money.

– What revenue has been collected?

– What types of taxes can be used?

2. A plan

• For how the government spends your money.

– What activities?

– How much to spend on what

– Priorities

– What do we have to spend

3 A plan

• A PLAN for government borrowing .

– If revenues are greater than spending

• Surplus- when there is a surplus, the gov can make

payments on the national debt.

4. Something

• that affects the Nation’s economy.– Education and science spending are designed to

increase productivity and raise incomes

(investments)

– Taxes reduce income and leave people with less

money to spend

5. Something

• that is affected by the Nation’s economy.

– When the economy is doing well, people earn

more and unemployment is low, revenues

increase and the surplus grows

6. A

• historical record.– Reports on how the government has spent

money in the past and how that spending was

financed.

– We can look back and see what worked and

what did not work.

1. Federal Budget

• According to the Budget and Accounting

Act of 1921.

• The president must annually submit a

budget to Congress by the first Monday

in February.

• The next fiscal year begins OCTOBER 1.

– Different than calendar year.

The proposed spending plan, the

president's budget must show

– The condition of the Treasury at the end of the

last completed fiscal year.

– The estimated condition of the Treasury at the

end of the current fiscal year.

– The estimated condition of the Treasury at the

end of the next fiscal year if the budget

proposals are carried out.

2

• CONGRESS PASSES A BUDGET

RESOLUTION FIRST

3

• Discretionary Spending

– Accounts for 1/3 of all federal spending

4.

• Includes money appropriated through 13 annual bills FBI,ED, NASA, Def,

Highways, foreign aid, etc.

• Current law imposes “caps” on

discretionary spending.

5.

• Mandatory Spending Accounts for 2/3 of

all federal spending. It is authorized by

permanent law

6.

• Mandatory Spending includes any of the

following.

– Social Security

– Medicare

– Veterans benefits

– Food stamps

– Interest on national debt

7.

• Congress and the president must change

the law in order to change the spending on

these programs PAYGO ( pay as you go)

8.

• Budget Authority is the law that

authorizes the federal government to

spend money.

9.

• Many people help monitor the budget.

Included in monitoring are the following:

– The Office of Management and Budget

– Congressional committees

– General accounting office- the auditing

arm of Congress

– Press

– Citizens- that means YOU!

10.

• Ensure

– the agencies comply with legal limits on spending, and they use budget authority only for the purposes its intended.

– that programs are operating consistently with legal requirements and existing policy

– that programs are well managed and achieving the intended results

11.

• GOVERNMENT PERFORMANCE AND

RESULTS ACT of 1933 was designed to

improve government spending.

• By using better measurements of their

results in order to evaluate their

effectiveness

Know the difference!

• Deficit- When revenue (receipts) is less

than spending( outlays) at the end of ONE

fiscal year.

• Debt- All accumulated deficits added

together from previous years.

How does the federal budget

affect you?