budget deficit

Examples of budget deficit in the following topics:

• The Election Year Budget

  • The annual budget deficit is the difference between actual cash collections and budgeted spending (a partial measure of total spending) during a given fiscal year, which runs from October 1 to September 30.
  • The Obama administration's 2012 budget request focused on reducing annual deficits to more sustainable levels by making certain cuts in spending while continuing to support areas that would promote long-term economic growth, such as education and clean energy.
  • Instead, the budget request was projected to reduce government deficits by 1.1 trillion dollars over the next ten years.
  • Republicans have criticized the president's plan for not going far enough to reduce future deficits.
  • This budget request is President Obama’s first on-time budget proposal since 2011.

• The Budgeting Process

  • However, Congress is the body required by law to pass a budget annually and to submit the budget passed by both houses to the President for signature.
  • These include the Government Accountability Office (GAO), Congressional Budget Office, the Office of Management and Budget (OMB) and the U.S.
  • As such, most of these expenses were not included in the budget deficit calculation prior to FY2010.
  • The annual budget deficit is the difference between actual cash collections and budgeted spending (a partial measure of total spending) during a given fiscal year, which runs from October 1 to September 30.
  • Since 1970, the U.S. federal government has run deficits for all but four years (1998–2001) contributing to a total debt of $16.1 trillion as of September 2012.

• Fiscal Policy

  • Government spending is fully funded by tax revenue and overall the budget outcome has a neutral effect on the level of economic activity.
  • Thus, for example, a government budget that is balanced over the course of the business cycle is considered to represent a neutral fiscal policy stance.
  • A fiscal deficit is often funded by issuing bonds.
  • Governments can use a budget surplus to do two things: to slow the pace of strong economic growth and to stabilize prices when inflation is too high.
  • When the government runs a budget deficit, funds will need to come from public borrowing (government bonds), overseas borrowing, or monetizing the debt.

• Committee Deliberation

  • If the second house amends the bill, then the differences between the two versions must be reconciled in a conference committee, an ad hoc committee that includes both senators and representatives sometimes by using a reconciliation process to limit budget bills.
  • Both Houses use a budget enforcement mechanism informally known as pay-as-you-go or paygo which discourages members from considering acts which increase budget deficits.

• The Conflict-Resolution Function

  • This is an ad hoc committee that includes both senators and representatives and uses a reconciliation process to limit budget bills.
  • Both Houses use a budget enforcement mechanism informally known as "pay-as-you-go" or "pay-go" which discourages members from considering acts which increase budget deficits.

• Deficit Spending, the Public Debt, and Policy Making

  • Deficit spending and public debt are controversial issues within economic policy debates.
  • Deficit spending occurs when government spending exceeds tax receipts.
  • Governments usually issue bonds to match their deficits.
  • Deficit spending may, however, be consistent with public debt, remaining stable as a proportion of GDP, depending on the level of GDP growth.
  • One of the largest budget expenditures for state governments is Medicaid.

• Income Security Policy

  • Fiscal policy is considered to be any change the government makes to the national budget in order to influence a nation's economy.
  • Any changes the government makes to the national budget in order to influence a nation's economy is considered fiscal policy.
  • The government tried to stay away from economic matters as much as possible and hoped that a balanced budget would be maintained.
  • By running deficits, the economy recovered, and America rebounded from its drought of unemployment.
  • The military strategy of full employment had a huge benefit: the government's massive deficits were used to pay for the war, and ended the Great Depression.

• Fiscal Policy and Policy Making

  • In economics and political science, fiscal policy is the use of government budget or revenue collection (taxation) and expenditure (spending) to influence economic.
  • Government spending is fully funded by tax revenue and overall the budget outcome has a neutral effect on the level of economic activity.
  • Even with no changes in spending or tax laws at all, cyclic fluctuations of the economy cause cyclic fluctuations of tax revenues and of some types of government spending, which alters the deficit situation; these are not considered to be policy changes.
  • Thus, for example, a government budget that is balanced over the course of the business cycle is considered to represent a neutral fiscal policy stance.
  • Borrowing: A fiscal deficit is often funded by issuing bonds, like treasury bills or consols and gilt-edged securities.

• Budget Resolutions

  • Congress must create an annual budget resolution in response to the President's budget request according to the Congressional Budget and Impoundment Control Act of 1974 (also known as the Congressional Budget Act) .
  • The budget resolution establishes budget totals, allocations, entitlements, and sometimes includes reconciliation instructions to certain House or Senate committees.
  • April 15th is the target date for congressional adoption of the budget resolution set by the Congressional Budget Act.
  • In some instances, Congress has not adopted a budget resolution.
  • The Congressional Budget and Impoundment Control Act of 1974 (Congressional Budget Act), created during the Nixon administration, established the current budget resolution process.

• Preparing the Budget

  • The Office of Management and Budget (OMB) performs key tasks in preparing the presidential budget request that is submitted to Congress.
  • A great deal of preparation goes into the president's budget request submission, which is entitled, Budget of the U.S.
  • The structure of the OMB facilitates the preparation of the budget and the later submission of that budget to Congress.
  • The Office of Management and Budget plays a key role in preparing the president's budget request to Congress.
  • Summarize the key role played by the Office of Management and Budget in shaping the President's budget request