The Federal Budget

How often does the federal government create a budget?

The Federal Government is required to create a budget once a year.

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

The National Debt Clock is a live billboard that displays current United States gross national debt and the amount that each American family owes. It was created by the New York real estate developer Seymour Durst in 1989 who wanted to highlight the rising national debt. It is currently installed on in Manhattan, New York City.

How is the federal budget created?

The budget is created through a long negotiation process between the President's office and Congress. Eventually, one budget is drafted and voted on by Congress.

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

The federal government has a history of creating poor budgets and has been running huge deficits (spending more than it brings in) for years. Each time the government runs a deficit it must borrow money to pay it bills.

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.

From whom does the Federal Government borrow money from?

1. Individual citizens. 2. Foreign governments 3. Itself

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

1. Individual income taxes. 2. Payroll taxes. 3. Corporate income taxes.

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.

What is the Discretionary spending of the federal budget?

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

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.

What is a fiscal year?

A fiscal year, which is one year or 12 months.

Which countries loan the U.S. money?

China, Japan, Brazil, Ireland, Switzerland, United Kingdom, Hong Kong, Luxembourg, Taiwan and Belgium.