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Politics of the United States
The Federal Budget
Terms in this set (17)
What is a budget?
A budget is a plan for spending and saving.
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.
How often does the federal government create a budget?
The Federal Government is required to create a budget once a year.
What is a fiscal year?
The federal budget covers a fiscal year, which is one year or 12 months.
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.
T/F: The Federal Budget is massive, over 2200 pages.
What are the three sources of revenue (income) for the federal government?
Individual income taxes (this the largest; makes up over 49% of all federal revenue), payroll taxes, corporate income taxes
What is the Mandatory spending of the federal budget and roughly what percentage of the budget does it eat up?
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 the Discretionary spending of the federal budget?
is flexible spending; it pays for running the government and new programs.
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.
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.
Does the federal government have a habit of running surpluses (extra money left over) or deficits (spend more than you take in) most years?
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.
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.
From whom does the Federal Government borrow money from?
Individual citizens, foreign governments, itself
-Money is loaned to the federal government by people or other countries buying U.S. securities, which are bonds or IOUs.
Which countries loan the U.S. money?
China, Japan, Brazil, Ireland, Switzerland, United Kingdom, Hong Kong, Luxembourg, Taiwan, Belgium
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.
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