PPO- Federal Budget Lesson
Federal Budget
The federal budget is a huge part of determining the direction the government is taking regarding public policy. The Constitution provides a few guidelines about the budget.
CONSTITUTIONALITY |
DESCRIPTION |
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Article 1, Section 8, Clause 1 |
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Article 1 |
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Article 1, Section 9 |
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16th Amendment |
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McCulloch v. Maryland |
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Even though Congress has the authority to use federal money, other parts of the government are also part of the process.
President: Must submit a budget proposal to Congress the first Monday after January 3rd.
Office of Management and Budget (OMB): The president's spending plan is sent to this office and it puts the budget requests together, reviews, revises, and prepares the budget for the president to submit to Congress.
Congressional Budget Office (CBO): By mid-February, it evaluates the president's budget and submits a report to the House and Senate Budget Committees.
Congress: By April 15th, a common budget direction must be passed. The fiscal year begins October 1st and both houses must pass the budget legislation by that date to avoid a government shutdown.
Most revenue that the federal government uses mainly comes from taxes. If the revenues are lower than government spending, the government borrows money to finance the difference. The difference between revenues and spending is the deficit.
Sources of Government Revenue
Explore each section in the tabs below to learn more.
Sources of Government Spending
- Social Security is the largest federal program and provides monthly benefits to retired and disabled workers, their dependents, and survivors.
- Medicare provides health care coverage for elderly Americans and people with disabilities.
- Medicaid provides for the poor, people with disabilities, and senior citizens in nursing homes.
- Major Means-Tested Entitlements provide benefits to people with incomes below minimum levels. Examples include:
- Food Stamps
- Supplemental Security Income
- Child Nutrition
- Earned Income Tax Credit
- Veteran's pensions
- Other entitlements include:
- Federal retirement and insurance programs
- Payments to farmers
IMAGES CREATED BY GAVS