8. The Federal Budget

What is a fiscal year?

12 months/1 year

What does a budget ensure?

A budget ensures that there is enough money for the things that are needed and the things that are considered important.

What is a budget?

A budget is a plan for spending and saving.

Which countries loan the U.S. money?

China 1255 Japan 1149 Brazil 255 Ireland 233 Switzerland 226 United Kingdom 210 Hong Kong 197 Luxembourg 188 Taiwan 178 Belgium 139

Does the federal government have a habit of running surpluses (extra money left over) or deficits (spend more than you take in) most years?

Deficits! Big deficits!

What is the Discretionary spending of the federal budget?

Discretionary Spending is flexible spending; it pays for running the government and new programs.

From whom does the Federal Government borrow money from?

Individual citizens. Foreign governments Itself

What is the National Debt Clock and where is it located?

It is a clock in Manhattan that tracks the national debt.

What is the Mandatory spending of the federal budget and roughly what percentage of the budget does it eat up?

Mandatory Spending is required to fund programs such as Social Security, Medicare, and other programs created in the past. Mandatory spending eats up most of the budget, close to 70 percent.

How is the federal budget created?

The budget is created through a long negotiation process between the President's office and Congress The President's office and the different political parties in congress all fight to fund their desired programs Eventually, one budget is drafted and voted on by Congress. The President can accept the final budget by signing it or reject it by vetoing

What are the three sources of revenue (income) for the federal government?

The federal government obtains its revenue from taxes and fees. A. Three main sources of revenue are: Individual income taxes. (This the largest; makes up over 49% of all federal revenue) Payroll taxes. Corporate income taxes.

How does the federal government borrow money from itself?

The main method is by taking money from trust funds like Social Security and promising to pay it back later.

What is the National Debt?

The national debt is all of the money the federal government has borrowed over the years and has not paid back.

In 2018, what were the total expenses of the federal government?

The total expenses of the federal government for fiscal year of 2018 was close 4.109 trillion dollars.

In 2018, what were the two largest expenses of the federal budget?

The two largest expenses are health programs (Medicaid and Medicare) and Social Security payments. These two areas account for more than fifty percent of the federal budget and are growing at a rapid pace.

T/F: The Federal Budget is massive, over 2200 pages.

True

How often does the federal government create a budget?

every year