The Pros And Cons Of The Federal Budget

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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,
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“The federal budget is divided into thousands of accounts and subaccounts” (McEachern). The special interests are also all lobbying for different and often opposing views on certain measures. There are also limited allowances due to prior laws involving all entitlement programs. The time frame allowed for this very extensive and enormous task of reviewing every single entry is extremely short and often times all items do not get reviewed with the focus it should get for clear, concise directions. The extensive detail does not …show more content…
In the year of 2003, deficit increase to 3.5 percent relative to GDP (Gross Domestic Product). By 2009 deficit raised to 10.1 percent relative to GDP. Thus, the deficit has gradually decreasing, 2013 U.S. federal deficit stand at 4.1 percent relative to GDP.
The deficit is climbing due to many reasons from the government spending higher than its revenue. There are two type of spending: a discretionary spending and non-discretionary (mandatory) spending. The discretionary spending includes a wide array of programs such as education, training, science, technology, housing, transportation, and foreign aid. While non-discretionary (mandatory) spending is pay for Social Security and Medicare, which is significantly contributing to the budget’s deficit

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