Public Budgeting



Public Budgeting

Introduction

This paper describes the economics of federal budgets, with particular attention to government borrowing in the United States at the federal, state, and local levels. The study provides definitions and describes some principles of federal, state, and local budgeting. Further, this study focuses on major issues pertaining to federal government borrowing. The final section is a summary. The federal budget in the U.S. is a very complicated financial mechanism and controls the activities of all federal departments and agencies, completely determines the economic foundations of nation-building and has a powerful impact on the economy as a whole. In form it is a regularly affirm detailed estimates of all government expenditures and revenues to be distributed by source of revenue, the main directions and program spending. Under the budget revenues in the U.S. usually means the monetary amount of tax revenue and other fees collected from people and businesses by the federal government through federal or local authorities. Budget revenues also include various kinds of gifts and contributions. In the income does not include the amount of sales of federal assets, interest income, payments on loans and domestic money transfers between Government accounts.

The structure of expenditure and income parts of the federal budget undergoes annual changes. And therefore the consideration of income and expenditure of the federal budget is interesting in terms of the dynamics of these changes. Thus, we consider the structure of budget revenues and expenditures in federal U.S. a single year, and compare the federal budget 80's and 90's. It should be noted that the structure of the U.S. federal budget is more influenced by political events occurring in this country. For example, the federal budget has been a battleground for many months of conflict in the Clinton and the Republican Congress before the presidential election in 1996 in the United States.

In the U.S., 50 states formally endowed with autonomous rights in the field of finance. They make their own, adopt and implement their own budgets, which are neither income nor expenditure not included in the federal budget. To some extent they are independent in determining the scope of budgets, expenditure patterns and income. Federal authorities are not authorized to directly control the state budgets. State governments are not accountable to the Federation on the finances and budget. In most states, budgeting is administered by the Chief Executive and shall subordinate financing body. At the same time develop cost estimates for budget and finance office, and estimates of income - tax and other organs. The draft budget is sent to the local legislature.

The largest in the state budget expenditures are expenditures for education (35% of budget expenditures), social security (13%), health (9%), road construction and maintenance of roads, environment, housing and utilities economy. Today, the main source of revenue for state budgets is the sales tax i.e. 29% of revenues. A personal income tax is 17%. Lack of own funds states broke through financial support from the federal budget (23% of revenues) and revenues of the ...