The Congressional Budget Office ( Cbo ) Essay

1771 Words Apr 28th, 2016 8 Pages
The 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). A budget deficit means the government is spending more than what it earns, and the calculation based on one-year period, which also means that government has to borrow money to cover the cost. The accumulated budget deficit of all the year is defined as the national debt. So what is the federal budget, how is it created, and how does it effect the health of our economy?
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. The Federal budget is used to spend in forestry, education, space technology, and the national defense, and entitlement programs, with revenue from the collection of federal taxes. A well-managed budget will bring prosperity to the country. However, creating a budget at the federal level is profoundly complicated. There is a process of several steps in creating a federal budget for a fiscal year.
On the first Monday of February, The President will propose the budget outline to Congress for the upcoming fiscal year, and then to the…

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