Budget
Download
1 / 16

Budget - PowerPoint PPT Presentation


  • 105 Views
  • Uploaded on

Budget. Plan for managing and spending money. Governments create budgets to help them make decisions because of limited resources aka SCARCITY!!. Budget continued…. Two parts: Revenue and Expenditures Revenue: Money the gov’t receives Expenditures: Money the gov’t spends

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Budget' - kaia


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Budget

Budget

Plan for managing and spending money.

Governments create budgets to help them make decisions because of limited resources

aka SCARCITY!!


Budget continued
Budget continued…

  • Two parts: Revenue and Expenditures

    • Revenue: Money the gov’t receives

    • Expenditures: Money the gov’t spends

  • Runs on a fiscal year: October 1-September 30.



Non tax revenue
Non-Tax Revenue

The government will charge tolls for the use of roads and canals.

The government will charge fees for driving, hunting, fishing, and getting married.

Charge fines (ie. traffic)

The government will sell and rent land.

Government run lotteries provide revenue, but they are controversial.

http://prezi.com/v9fb37hv6pek/present/?follow=-lv7ji7xi4ss&auth_key=q246x09#5


Mandatory and discretionary
Mandatory and Discretionary

  • Mandatory Expenditures- funding entitlement programs such as:

    • Medicare/Medicaid, Food Stamps, and Welfare

  • Discretionary Expenditures- Congress sets the level of spending for departments


Budget deficits
Budget Deficits

  • Deficits occur when expenditures exceed revenue in one fiscal year.

    • Governments are expected to do more without raising taxes.

  • This forces them to borrow money.


Gov t borrowing money
Gov’t Borrowing Money

  • The government borrows money to make up for a deficit.

  • Most borrowing comes from the sale of government bonds.

    • The government pays off the bonds as they come due (mature).


National debt
National Debt

  • The total amount the government owes on the money it has borrowed.

  • Goes up with each deficit and accumulated interest.

    • Interest: Fee paid for the use of money.

      http://www.brillig.com/debt_clock/


Debt vs deficit
Debt vs. Deficit

Deficit = One year of expenditures > revenue

Debt = all deficits + interest

Bonds are the #1 reason for government debt


Balancing the budget
Balancing the Budget

http://www.printthis.clickability.com/pt/cpt?expire=&title=House+votes+to+require+budget-balancing+plan+-+News+-+ReviewJournal.com&urlID=502075943&action=cpt&partnerID=192612&cid=190578081&fb=Y&url=http%3A%2F%2Fwww.lvrj.com%2Fnews%2Fhouse-votes-to-require-budget-balancing-plan-190578081.html

  • Balanced Budget: Expenditures do not exceed revenue.

    • Republicans in the House of Representatives have approved a bill that would require a plan to balance the budget. The Senate is probably not going to pass the bill.

  • State constitutions require balanced budgets with no borrowing.


ad