Backgroud Of The United States Budget Essay free essay sample

, Research Paper Background of the United States Budget This coming twelvemonth, in 1999, our Federal Government will pass over $ 1.7 trillion. They use this money to back up causes that aid to the improvement of society, the wellness of the people, research for better and new stuffs, instruction, and one of the biggest, the military. Each twelvemonth, by the first Monday if February, the President of the United States nowadayss to Congress the proposed Federal Budget for the following financial twelvemonth. Each financial twelvemonth starts on October 1st of the predating twelvemonth. This budget is gathered and created by the White House? s Office of Management and Budget ( OMB ) . They create the budget based on petitions made by single bureaus and from confer withing with the President? s senior advisers and functionaries from cabinet sections and other bureaus. After having the proposed budget from the President, the Congress meets to overlook it. During the procedure of overlooking the budget, the Congress, with the President, make up ones mind how much they are traveling to pass to each activity that the authorities endorses. Some illustrations are public libraries, constabulary forces, instruction, national menagerie? s, the CIA, FBI and other organisations. Once they have a concrete estimation of how much money the authorities will pass in the following twelvemonth, they so make up ones mind how much they are traveling to hold to revenue enhancement the American populace in order to cover all of the proposed outgos fo the budget. There is a all right line that the Congress has to worry approximately. If they revenue enhancement excessively much, the people in the U.S. will non hold adequate money to pass on merchandises, hence aching our economic system. On the other manus, if the authorities does non revenue enhancement adequate to cover all of the outgos, so they have to take our loans to cover all that they are paying for. When this happens, it is called a shortage. The shortage of the United States truly made intelligence in the late 80? s and early 90? s when the shortage climbed dramatically. The authorities during this clip, under the leading of President Ronald Reagan, spent a immense sum more so the authorities was conveying in. As of 1997, the Gross Federal Debt had accumulated to $ 5.37 trillion dollars and is expected to maintain lifting to a jutting debt of $ 6.336 trillion by the twelvemonth 2003. Finally although, the undertaking budget for 1999 shows a budget excess of $ 10 billion. Many of the shortages occur because of compulsory disbursement. Compulsory Spending is required by lasting Torahs that are directed to assist the populace. Social Security, Medicare, Medicaid, Veteran? s Benefits, Food Stamps, and involvement on the National Debt are all illustrations of what the authorities is required by jurisprudence to pay for each twelvemonth. Mandatory Spending histories for 67 per centum of all authorities disbursement. The staying 33 per centum is considered Discretionary Spending. This money is truly what the President and his functionaries have control over to allow towards causes which they seems worthy, such as the Coast Guard, FBI, CIA, lodging and instruction, infinite geographic expedition, main road building, foreign assistance, and of class, defence. The money used by the Government comes from assorted types of revenue enhancement. Most of what the authorities collects comes from single income revenue enhancements. In the twelvemonth 1997, the Internal Revenue Service collected 737 billion dollars from the people of the United States. This amounted to 46 per centum of the entire income for the U.S. and is equal to about 9 per centum of the Gross Domestic Product ( GDP ) . Social Insurance paysheet revenue enhancements were the 2nd largest aggregation of income in 1997, amounting to around 539 billion dollars. The remainder are described in the pie chart below. The Defense Department The Budget and the Effect of the Economy Last twelvemonth, in 1997, the United States authorities spent 270 billion dollars on National Defense, or 15 per centum of the entire authorities disbursement that twelvemonth. 258 billion dollars of this went to strictly the Military. Following twelvemonth for 1999, the budget shapers are foretelling a minute bead in support to 267 billion. This money goes to the payment of wages for military personnels, transit of the military personnels, the arms they use, the existent costs of war, and the testing and development of new arms and tactics, every bit good as other obvious outgos ( and many other secret undertakings which are kept classified ) . Because of the money we delegate to the armed forces, it is the finest, most talented, and best-equipped military force in the universe. The money the authorities allows the Defense Department to pass is non considered to be gone. The bulk of the money the Military spends is on merchandises made by U.S. companies. Each depends upon each other to be. Without the U.S. companies doing our arms and stuffs, our military would non be anything that it is today. Without the military support, many companies would non even exist and the engineering of today would be much less than it has turned out to be. This type of disbursement allows the economic system to thrive because we are maintaining the circulation of money within our ain state. We are doing ourselves richer by purchasing merchandises from ourselves. The battle of concerns to obtain authorities military contracts is a tough 1. Each twelvemonth, a published list of the top 100 companies shows the victors of contracts and the premium of which they were awarded. These companies, because of these contracts, have become some of the largest in the state, if non the universe. Each one of these companies contributes a major facet that puts our defence section a measure above the remainder. The chart below shows the top 10 companies and the sum the Defense Department paid to them in 1996 and 1997. The companies above all have a big portion to make with our military? s success. Lockheed Martin Corporation makes assorted combatant planes and missile systems. The Boeing Company contributes many other combatant planes, defence systems, electronics, and missile systems. Northrop Grumman Corp. follows Lockheed and Boeing in the astronauticss part of our military. General Dynamics Corp. works largely with Naval constituents. They produce Trident pigboats, and Destroyers for usage in the H2O. Finally, the fifth highest contract goes to Raytheon, which is a company who develops assorted pilotage systems for both foot vehicles and missiles. Boeing and Lockheed, now one company, are the largest contract, by far, of the American armed forces. Even with the sum the military spends each twelvemonth and the per centum of our revenue enhancements that go to the military, is it plenty? As of now, the United States is the proprietor of the finest, strongest force in the universe. Recently, in order to salvage money and decrease our budget shortage each twelvemonth, the authorities has easy been worsening the defence budget. For the 14th sound twelvemonth, the authorities has taken away the resources the authorities needs to keep their forces as the strongest. Our active-duty force has diminished from 2.2 million soldiers to 1.4 million. Yet, even as this happens, our forces are being called upon to make more all over the universe. Even though our defence budget is less than it has been, it is merely reflecting the fact that we are non in the Cold War any longer. Besides, it displays the fact that we eventually have adequate arms that we do non hold to do more to be secure. Despite this even, after a ( Time article )