Asked by: Amalio Rafoth
asked in category: General Last Updated: 5th February, 2020

What is the main goal in creating the federal budget?

The main goal behind creating a federal budget is to decide upon the management of tax revenue and allocate the same on various government expenditures such as social security, healthcare, defense, interest payments, nondefense discretionary spending, etc.

Click to see full answer.


Herein, what is the main goal in creating the federal budget quizlet?

The goal is to have a balanced federal budget. The govt spends an amount of money equal to that which is collected in revenue. The government can increase revenue through increased taxing, borrowing money or creating money. All three choices have negative effects, creating money can lead to inflation.

Subsequently, question is, how is the federal budget created? Infographic: The Federal Government's Budget Process. Congress must create and pass numerous funding bills each fiscal year to keep the federal government open. The Constitution puts Congress in charge of the budget, granting it the power to collect taxes, borrow money, and approve spending.

Similarly, what does deficit spending require a government to do?

A government's budget deficit causes debt to increase. Debt requires a government to pay back more than it has borrowed. The deficit is the amount a government spends above what it brings in.

When governments inject money into the economy which of the following are their goals?

The goals of the government are: Reducing Unemployment, Improving economic stability, Encouraging Competition and improving production when they inject money into the economy.

37 Related Question Answers Found

When revenues are higher than expenditures in a budget?

What revenues are higher than expenditures in a budget that budget?

What does the diagram show about tax revenue?


Why it is important that citizens understand the government's budget?

What was the budget deficit in 2012 quizlet?

What is the relationship between a budget deficit and the national debt quizlet?


How does the federal government achieve its economic goals?

What is the relationship between demand side economics and the federal budget deficit?

What is an example of deficit spending?


Who controls the deficit?

Is deficit spending good for the economy?

What does the deficit really mean?


What is the deficit today?

What might cause the government to increase spending?