Problems in the U.S Government Budget Process

By

ACKNOWLEDGEMENT

My thanks go out to all who have helped me complete this study and with whom this project may have not been possible. In particular, my gratitude goes out to friends, facilitator and family for extensive and helpful comments on early drafts. I am also deeply indebted to the authors who have shared my interest and preceded me. Their works provided me with a host of information to learn from and build upon, also served as examples to emulate.

DECLARATION

I, [names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date ________________

TABLE OF CONTENTS

ACKNOWLEDGEMENT2

DECLARATION3

CHAPTER 1: INTRODUCTION1

Background of the Study1

Problem Statement2

Aims and Objectives of the Study2

Significance of the Study2

Rationale of the Study3

Research Questions3

CHAPTER 2: LITERATURE REVIEW4

Theoretical Framework4

Problems in the Budgeting Process of the U.S4

Budgeting Techniques for Different Types of Industries5

State Differences in Budget Structure6

Budgeting Process of the United States6

Fiscal Reforms7

Solution to the Problems of the U.S Budget Process8

CHAPTER 3: METHODOLOGY10

Introduction10

Research Methodology10

Methodological Approach11

Research Approach12

Justification of Research Method12

Data collection Techniques13

Data Collection13

Reliability/Dependability13

Validity14

CHAPTER 4: FINDINGS AND DISCUSSION15

Breakdown Of U.S Bugdet In Major Sectors15

Decision Making for Federal Budget16

Budgeting Process18

Solution to the Budgeting Process18

CHAPTER 5: CONCLUSION19

Recommendations19

REFERENCES21

CHAPTER 1: INTRODUCTION

Background of the Study

The process of budgeting is an important task that contains different rules, sub processes and other procedures finally making it possible to be presented at the Parliament. The budgeting process takes different steps and requires the services of different staff members like the individuals working at different ministries. They are required to design the schedule for the important spending and expenditures of the country required for particular development and non development projects. The main purpose of the budget process is to present an outline for the budget targets of each of the Fiscal Year (FY). The Fiscal Year starts on Oct 1 and ends on Sept 30 of each month. For example the new Fiscal Year starts on Oct 30 2002 and ends on Sept 2003. In the budget process, the budgets mainly focused two types of spending.

These spending are mainly the Mandatory spending and the discretionary spending. The major portions of the budget spending usually involve the agriculture, health, education and defence sectors that are considered to be the important priorities for spending. The accounts of the mandatory spending mainly include the spending that. The process of the budget mainly include the submission of the budget to Congress, the resolution of budget, reconciliation of the budget, authorizations, sequestration and appropriations. All these steps are the part of the budget process that is considered to be very important for the formulation of the American budget. Each of the step is given due importance and all the steps are considered to be very important with respect to the budget formulation.

Problem Statement

The rising cost of health care programs and other sector may pose serious problems to the budget ...