The Federal Budget

Does the federal government budget and spend your tax dollars wisely?

Summary

The federal budget is an estimate of the money the government will take in and spend over a fiscal year. It is created by a long process that involves the executive and legislative branches of the government.

Control of the federal budget First Congress and then the president controlled development of the federal budget. The current budget process calls for cooperation between the executive and legislative branches.

Federal budget cycle Preparation of a federal budget is a long process that lasts almost two years. It begins with preparation of initial budget requests by federal departments and agencies and ends with a final budget approved by Congress and the president.

Revenue and expenditures Most revenue, at all levels of government, is raised through a variety of taxes. At the federal level, entitlements are the largest expenditure. At the state and local levels, education tops the expenditure list.

. State and local budgets People depend on state and local governments to fund public schools, police and fire departments, roads and bridges, and health and welfare services. State and local governments pay for services through taxation, lotteries, and user fees.