Discretionary Budgets and Estimating Revenues during Downturns
Congress is responsible for creating the federal government’s annual budget. For agencies and their programs to be funded, Congressional authorization committees must pass, and the President must sign, all 12 authorization bills by September 30â€”the last day of the current fiscal yearâ€”so the country can have a new budget in time for the start of the next fiscal year (USA.gov, n.d.).
Obtain the .xls (Excel) file format of Table 1.1 and Table 1.2 to complete the two requirements below:
Table 1.2 shows the budget of Surpluses or Deficits (â€“) as Percentages of gross domestic product (GDP). Determine how many times since 1950 the budget has shown a surplus and how many times it has shown a deficit using the data in the Total column, â€œSurplus or Deficit.â€ Also, identify the 3 years with the highest deficits, and the year with the highest surplus as a as a percentage of GDP. What were the surplus and deficit percentages for these years?
Table 1.1 shows the budget Summary of Receipts, Outlays, and Surpluses or Deficits (â€“) from 1789â€“2022. Identify whether the highest deficits incurred in the identified years from Table 1.2 were paid with tax revenues (receipts) or borrowed funds (outlays). Discuss how the government gets money and where the government spends money on.
Click on the â€œFiscal Year 2018â€ link, scroll down and obtain the PDF file for â€œMajor Savings and Reformsâ€ to complete the last requirement. The Major Savings and Reforms volume describes major savings and reform proposals included in the 2018 Presidentâ€™s Budget.
Discuss major discretionary budget eliminations. Why is it important that government budgets accurately estimate future revenues during economic downturns?
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