Essay on Budget Deficit And The Federal Budget

1701 Words Apr 27th, 2016 7 Pages
According to Congressional Budget Office (CBO), “estimates that the federal budget deficit in 2016 will be $544 billion, raising debt held by the public to 76 percent of GDP” (CBO, 2016). Budget deficit means the government is in debt, and the calculation is for one-year period. So what is the federal budget?
In its most simple terms the federal budget is created by the office of the president, using the federal departments and independent agencies. Documents include historical data as well as information on spending and revenue proposals. The President 's budget request constitutes an extensive proposal of the administration 's intended revenue and spending plans for the following fiscal year. Federal budget is used to spend in forestry, education, space technology, and the national defense, and entitlement programs, with revenue from collection of federal taxes. Well budget will bring prosperity to the country. However, creating a budget at the federal level is profoundly complicated. There is a several-step process in creating a federal budget for a fiscal year.
On the first Monday of February, The President will propose the budget outline to the Congress for the upcoming fiscal year to Congressional Budget Office (CBO). The budget proposal includes all supporting information intended to persuade Congress of the necessity and value of the budget requirements. In addition, each federal executive department and independent agency provides additional detail and…

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