Government Budget Process & Planning
Nick CatesZander Peter
Mitchell Gornto
What is a Budget?
• A budget is an estimate of income and expenditure for a set period of time.
• A budget is important because it can cause a nation to flourish or go into debt.
• In order to thrive in the economy, the budget must be balanced.
• The government is responsible for managing the nation’s income and expenditures.
Revenue
• Revenue is the income of a government from taxation, excise duties, customs, or other sources, appropriated to the payment of the public expenses.
• Revenue is important because without it, the country would become broke.
• Revenue must be greater than or equal to the expenditures in order to maintain a balanced budget.
Expenditures
• Expenditures are funds that are being spent.• If the expenditures are too great, a country will go
into debt.• The U.S. spends money on things like research,
assistance programs, and the military. All of these things are important in maintaining a strong country.
• The U.S. is currently in debt because our expenditures are greater than our revenue.
Appropriations Bill
• A legislative act proposing to authorize the expenditure of public funds for a specified purpose.
• This is what allows the government to spend public funds on certain things.
Mandatory Spending
• Spending that is automatically obligated due to previously-enacted laws.
• This spending is basically required by law.• An example of mandatory spending would be
entitlement programs such as Medicare and Social Security.
Discretionary Spending
• US government expenditures that are set on a yearly basis.
• This type of spending can be changed from year to year.
• It is all at the discretion of the government.• An example of discretionary spending would
be education because the budget can change.
Entitlement Programs
• Entitlement programs are setup to help the American public. They include things like Social Security, Medicare, and Medicaid.
• Citizen tax dollars are used to pay for these programs.
• Entitlement programs are in place to help citizens who need some assistance.
Deficit
• Deficit is the act of spending more money than you are bringing in.
• The deficit can cause a country to have a high national debt.
• The government would prefer to have a low deficit because it makes it easier to control the national debt.
National Debt
• The national debt is the total amount of money that a country's government has borrowed, by various means.
• This is the result of a high deficit.• The U.S. national debt is currently about
$12,240,620,500,999.• This is inaccurate because it increases by the
second.
Surplus
• A surplus is the opposite of debt.• This happens when the revenue is higher than
deficit.
Taxes
Progressive Tax
• With a progressive tax, the tax rate increases as the taxable base amount increases.
• Income tax is an example of progressive tax.• Higher income families have to pay a higher
tax rate than families who are in a lower economic class.
Regressive Tax
• This is where the tax rate decreases as the amount subject to taxation increases.
• Cigarettes are an example of an item that carries a regressive tax.
• Regressive taxes tend to hurt lower income families more severely.
Proportional Tax
• This is when everybody is paying the same tax rate.
• Each person may be paying different dollar amounts but it is the same tax rate for everybody.
• Sales taxes can be considered proportional because everybody will be paying the same rate.
Video
• https://www.youtube.com/watch?v=ivv11Y0I2jU
Current Event
• http://www.washingtonpost.com/blogs/wonkblog/wp/2013/04/05/americas-taxes-are-the-most-progressive-in-the-world-its-government-is-among-the-least/
Works Cited• http://www.government.nl/issues/budget/budget-process• http://bankruptcy-temecula.com/bankruptcy/2012/01/24/bankruptcy-and-tax-refunds/• http://www.youtube.com/watch?v=ivv11Y0I2jU• http://www.unitedliberty.org/articles/13332-facts-that-demand-tax-reform• http://blog.mason23.com/bid/110647/National-Debt-vs-Deficit-We-need-better-communications• http://www.american.com/archive/2008/october-10-08/america-has-a-highly-progressive-tax-system• http://www.justfacts.com/nationaldebt.asp• http://www.fedupusa.org/2012/10/the-source-of-high-inflation-government-spending/• http://www.best-practice.com/compliance-best-practices/government-budgets/government-budget-gover
nment-budgets-compliance-best-practices/• http://budget.house.gov/budgetprocess/• http://nationalpriorities.org/budget-basics/federal-budget-101/federal-budget-process/• http://www.washingtonpost.com/wp-srv/special/politics/federal-budget-process/budgetprocess.pdf• http://www.arizonaeducationnetwork.com/2009/07/brbs-what-are-they-budget-reconciliation-bill/• http://thoughtfulwomen.org/2012/08/17/2012-election-is-a-tipping-point-on-mandatory-spending/• http://www.harris4kids.com/?page_id=17• http://www.flashissue.com/blog/how-to-make-money-with-content-marketing/