copyright © 2008 pearson education, inc. slide 4-1 unit 4f understanding the federal budget

Copyright © 2008 Pearson Education, Inc. Slide 4-1

Unit 4F

Understanding the Federal Budget


Federal Government Receipts and Outlays

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Receipts Outlays

Federal Government Outlays

Two categories Mandatory Outlays: expenses that will be paid

automatically unless Congress takes action. Often referred to as “entitlements.” Also includes interest on the federal debt.

Discretionary Outlays: decided on a year-to-year basis. These must be approved by Congress and signed into law by the President (bills). These are subdivided into defense and non-defense.



Federal Budget Summary

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Link to current:http://www.whitehouse.gov/omb/budget/Overview

Deficit vs. Debt

Deficit refers to money that is borrowed (or taken from savings) during a single year.

Debt refers to the total amount of money owed to lenders, which may result from accumulating deficits over many years.



Federal Surplus / Deficit and Overall Debt Since 1955

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

U.S. NATIONAL DEBT CLOCK The Outstanding Public Debt as of 12 Oct 2010 at 02:31:14 AM GMT is:

$13,633,141,046,135.65 The estimated population of the United States is

309,276,944 so each citizen's share of this debt is $44,080.69.


Two Kinds of National Debt

Publicly held debt (net debt or marketable debt) represents money the government must repay to individuals and institutions that bought Treasury issues (bills, notes, and bonds).

Gross debt includes both the publicly held debt and money that the government owes to its own trust funds, such as the Social Security trust fund.


Who Holds the Most of “Our” National Debt?

http://www.ustreas.gov/tic/mfh.txt

What are the ramifications?


copyright © 2008 pearson education, inc. slide 4-1 unit 4f understanding the federal budget

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