Budgeting Class Flashcards
In the public sector, the term is often exclusively associated with infrastructure investments – plant and equipment. Cover most new Construction projects.
Capital budgeting
An _____ _____ is used to keep track of maintenance operations, salaries, and interest payments
Operating budget
In the United States, businesses along with state and local governments divide their budgets into two types
The operating budget and capital budget. The operating budget
Programs covered by specific revenue sources
Special fund budgets
Uncontrollable expenditures are the result of government policies that have made some groups what?
Uncontrollable expenditures are the result of government policies that have made some groups automatically eligible for benefits.
What are 3 examples of entitlement programs that use large portions of the federal budget?
Social Security, Medicare and Medicaid . Other uncontrollable expenditures include civilian and military pensions, earned income credits and food stamp programs
Discretionary spending includes items that are not what?
Part of the mandatory budget
In public finance, discretionary spending is government spending implemented through a what?
An appropriations bill
Budgeting Systems- a set of units with relationships amongst them. What are two system examples of budgeting systems?
Capital and operations
_____ in economics is the “quantity of goods or services produced in a given time period, by a firm, industry, or country.
Output
It is ___ _____ that makes a country rich, not large amounts of money.
National output
When the government redistributes or transfers resources to components of society instead of consuming them
Non-exhaustive expenditures
Give an example of Non-exhaustive expenditures.
Interest payments on national debt, unemployment insurance, retirement benefits
Occurs when the Government consumes resources such as facilities and manpower that might have been otherwise used by the private sector
Exhaustive expenditures
Give some examples of Exhaustive expenditures?
Building bridges, buying tanks and missiles, and hiring troops and teachers
GDP
Total economic production. Country’s final output. Ex. Cars, wheat
GNP
- Revenue that is generated outside the U.S.A.
N.N.P. Net national Product
Net national Product (N.I.) National income derived from NNP by eliminating indirect business taxes included in the price of goods and business transfer payments
CITY government budget year.
CITY July 1st to June 30
STATE government budget year.
STATE April 1st to March 31
FEDERAL government budget year
FEDERAL October 1s to September 30
Progressive tax-
Tax those with higher income @ higher effective tax rate
Regressive Tax-
sales tax
Proportional tax-
Flat tax
Gramm–Rudman–Hollings Balanced Budget Act
The Acts provided for automatic spending cuts (“cancellation of budgetary resources”, called “sequestration”) if the total discretionary appropriations in various categories exceed in a fiscal year the budget spending thresholds
Budget Enforcement Act of 1990
The Act created two new budget control processes: a set of caps on annually-appropriated spending, and a “pay-as-you-go” or “PAYGO” process for entitlements and taxes
American Recovery and Reinvestment Act of 2009
To respond to the Great Recession,economic stimulus package
Performance-based budgeting -
Performance-based budgeting is the practice of developing budgets based on the relationship between program funding levels and expected results from that program
The National Performance Review
began on March 3, 1993 when President Clinton announced a six-month review of the federal government and asked Vice President Gore to lead the effort. Unlike past efforts that relied on outsiders, the Vice President gathered experienced federal workers and organized them into teams to examine federal agencies and issues that cut across agencies, such as personnel, procurement or budget policies.
The Government Performance and Results Act
- Agencies are required to develop five-year strategic plans
- Agencies are required to prepare annual performance plans
- Agencies must prepare annual performance reports
On January 4, 2011, President Obama signed the GPRA Modernization Act of 2010) into law it requires what?
Agencies to publish their strategic and performance plans and reports in machine-readable formats.
