BUDGET SIMULATION

Budget Simulation

Budget Simulation

Introduction

The study is related to allocation of budget in different sectors. Through the budget simulation game, the old budget was $ 3747.36 billion which comprises of $ 2672.527 billion in spending, $ 1074.833 billion in tax cuts and expenditures. The new budget is $ 3852.56 billion which comprises of $ 2776.52 billion in spending, $ 1076.04 billion in tax cuts and expenditures. Therefore, the budget deficit is increased by $ 105.19 billion and the new budget deficit is $ 506.19 billion.

Discussion

In the budget, the military spending has increased that is $44.62 billion from $446.105 billion as it is an important aspect of security. This increase in the military spending by 10% is the requirement of the country as it is important to have sufficient increment in the military spending which will help the country in fight against the terrorism.

Moreover, the spending in Iraq War and Afghanistan Operations is not required as these are not the wars of United States; therefore, United States has to hold or minimize its spending in the Afghanistan and Iraq operations.

In addition to this, in the budget, the agricultural spending has increased that is by $ 5.2 billion from $ 26.020 billion as it is an important aspect of growth and development. This increase in the agricultural spending by 20% is the requirement of the country as it is important to have sufficient increment in the agricultural spending which will help the country in growth and development.

Besides it, the spending on transportation has decreased by $ 7.05 billion from $ 70.673 billion as it is a vital aspect of overcoming the budget deficit. This decrease in the spending of transportation by 10 percent is the requirement of the country as it is imperative to have in the spending of transportation, which will help ...