FREE ESSAY ON BUDGETARY PROCCESS

BUDGETARY PROCCESS

Budgetary Process
The federal budget runs in a fiscal year, which last from October 1 to September 30. The
Office of Management and Budget first helps to create the federal budget. It is then sent
to the president, the central part of the budgetary system, and he must check it, and
afterwards it is sent to Congress. Another governmental structure involved in the
budgetary system is the General accounting office. The GAO is responsible in making sure
that the government spends its money on what is has budgeted for.
A continual aspect of the budget, is the deficit. Franklin Roosevelt believed that the
government should spend more than it took in, in order to get the economy running again.
He thought this would be a temporary adjustment to the budget, but it remained. When the
Balanced budget came around, there were a lot of people who protested it. It was thought
to not work because if they balanced the budget the economy would slow. The government
would have to cut many government funded programs, and this would cause more problems
with the budget. The Keynesian spending idea was that the government should be the
central role in encouraging different types of economic behavior. When private spending
decreased public spending should increase or taxes should be reduced. When private
spending increased, public spending should diminish or taxes should be raised.
Politics have a great influence on the outcome of the budget. Since there are so many
different arenas that rally for different spending in the budget it is hard to decide
what should be budgeted for. There seems to be complete chaos because the government must
please certain groups, but at the same time they must also let down others. The budget
affects everyone from children to the elderly, and there are so many political groups
that represent all these different types of people. It is really hard for the government
to decide who they must please. This is why politics has a great influence on how the
budget turns out. 
Our current federal budget calls for many tax cuts over the next ten years. This is the
biggest issue that our economy will have to deal with, for it is a big change from the
last 8 years. As a democrat I believe that these tax cuts may lead to a weaker central
government. Although it may be good for the rich, who will be able to keep more of there
money, it will not be beneficial to the majority who are middle to lower class. This in
turn could cause a political and even more a economic crisis. Politically for those
supporters of the democratic party, and those who wish to have more government funded
programs.