Debate: Police and Civilian Budget Preparation
Jennings and Zott (2013) define budget deficit as an indicator of the financial health of a state where the amount of expenditure exceeds the revenue. In most cases, budget deficit refers to the spending by the government as compared to person or organization although it can apply to all entities. The deficiencies occur every year when the expenditure by the government exceed the amount it collects through taxes. The national debt or budget deficit in 2014 was $486 billion. The government spent approximately $28,800 on each family and it was still experiencing a shortage of $ 4000 per household. A study from the article shows that the national deficit in 2014 exceeded 145,000 US dollars per family. The national debt in 2014 equates to $4,000 per family. The government borrowed fourteen cents of each dollar that it spent in 2014. Discretionary spending is part of the country’s budget that the finance department makes every year (Boccia, Fleming & Woody, 2014). The analysts project the spending to increase by twenty-nine percent over ten years when the lawmakers enforce sequestration. From 1994 to 2014, discretionary spending was changing spontaneously. Discretionary spending in 1994 was $793 billion and amounted to $1153 in 2014. Therefore, the percentage increase in the discretionary spending over the last 20 years is equivalent to 45.3 percent. A person can calculate the rate as follows: (1153-793)/793=0.454*100=45.4%.
Entitlement programs are approaches by the government that guarantee various benefits to a particular segments or groups of the population. Entitlement is among the mandatory spending of any country and includes security of the state, social security and health concern. In United States, Obamacare is among the entitlement programs that have been effective in controlling the sanitary conditions of the people all round the country. The entitlement programs have been contributing to increased debt of the country and the federal government has projected that the spending would further increase over the coming years. The major entitlement programs in the country include health care programs and social security program. Medicare is a health care program that has the largest consumption and therefore is among the key contributors of debt in the economy of the country (Boccia et al., 2014). However, social security is the major federal program that has been increasing the government spending, therefore, increasing the federal debt. The country expects the program to surge seventy-seven percent over the ten-year period. The spending by the program in 2014 was $603 billion and the economists project to increase to $1.04 trillion in 2024. Therefore, the social security program is the greatest driver of the national debt in the country.
The article shows that the Obamacare spending will increase over the coming decades because of the massive expansion of subsidies and Medicaid. The tax credit has made it difficult for the continuous success of Obamacare. The tax credit has made it difficult for Obamacare to entice small business owners in offering expensive medical coverage. The small business tax would help in raising additional revenues that can assist in reducing the cost of health coverage by aiding expansion and improvement of subsidies and Medicaid. The small business tax can help in purchasing coverage of health benefits of small businesses, therefore, boosting the effectiveness of Obamacare. Small business tax can help the program to entice employers in offering proper health coverage. The fastest growing entitlement program in the country is Medicaid and there is an expectation that the program will grow by 87 percent over the ten-year period. The medical program is growing at a faster rate and is supposed to raise the level of the government spending and therefore to increase the national debt.
The three national programs that are increasing the debt of the country at a higher pace are the health care programs that have been increasing the debt of the country at a faster pace. The spending on the health care program has been projected to reach $1.9 trillion in 2024 from $845 billion in 2014. Social Security is the largest program in the country (Boccia et al., 2014). Through the program, the amount of spending in the country has been increasing and has encouraged borrowing from other countries, therefore, increasing the debt of the nation. The social security program is projected to increase the spending by 77 percent by 2024. The spending on Medicare program has been growing with the increasing demand for the services by the clients. The Medicare program is forecasted to go up by 72 percent reaching $1.04 trillion in 2024 from $603 billion in 2014. The citizens are the primary beneficiaries of the program through enhanced security and medical conditions. The programs are financed by the citizens of the country through taxes and borrowing from other nations.
I agree that our nation is on a dangerous economic course. The higher rate of federal spending has negative impacts on the growth of the economy. The spending by the state government has been increasing at a faster rate, and the growth is not likely to be met efficiently through tax. Increased debt can hinder development processes in most parts of the country (Boccia et al., 2014). The increase in the budget deficit has been affecting the taxpayers by making them to contribute higher percentages of their income as tax. It is important to incorporate strategies that help in making sure that the spending of the government does not exceed the actual amount of resource that is available. The various programs in the country have been encouraging the state to increase the amount it spends. The deficit of the country has been growing rapidly, and there is an expectation that the debt will have increased by 151 percent by 2024. The level of spending in the country by the government is expected to increase therefore increasing the budget deficit of the country. Even if the tax revenue would return their average level, the deficit would still be higher because the spending is growing at a faster rate that tax collection. In 2014, the country experienced a deficit and had to borrow fourteen cents for each dollar it spent to meet the increased spending.
Some of the most disturbing examples of waste by the government include lack of proper inventory system for defense making the defense force ineffective in the use of ammunitions. The department is set to destroy ammunition worth $1.2 billion. The State could have put the money proper usage improving the performance of the country. The government has been misusing the public funds. The Treasury sector in the country spent $ 112.7 million in raising international and domestic awareness of minor changes on the dollar bill. Mismanagement of projects that have resulted to more finances being used than the planned amounts of resources while the projects remain uncompleted. The defense sector spent almost $500 million in buying military planes for the Afghan forces. The military has not yet used the planes because they did not meet the requirements and their maintenance cost is high. The money could be diverted for proper use that could have helped in productive sectors. The misuse of $3.3 million by the defense to pay for the Afghan army radio because the department failed to follow the procedures shows the wastage of resources by the government. I think the countries offering financial assistance will no longer tolerate the national debt and will call for repayment when the federal government shows little effort in reducing the amount of spending. The lenders may feel that the country will not be in a position to pay the debt, therefore, cutting down their assistance and even asking for repayment of the debt. The government should contribute by putting effective measures to reduce mismanagement of finances that could hinder them from getting assistance from other countries.
Boccia et al., (2014) state that cutting the spending by the federal government would help reduce the amount that the country is borrowing from other countries. The federal government should audit the operations of the various governmental programs and departments to help in reducing wastage of finances. The government should follow up the financed projects to ensure that the assignments are completed within the required time and with the budgeted funds. The government should impose a tax on all people based on the revenue they gain to help in financing the internal operations of the country. In addition, it is important to evaluate the effectiveness of the programs before implementing. Proper management can assist in using the available resources efficiently. Following the set procedures in purchasing the products and offering services would help to reduce wastage of resources therefore reducing borrowing.
A country experiences budget deficit when the spending exceeds the collections or the available revenue in the government. Various programs adopted by the state government has been increasing the spending making the country to operate by having large debts. Reducing the spending by the federal government helps in reducing the debt of the country therefore maintaining the economic welfare of the nation. The government should be involved in managing all the financial resources and projects to ensure that only the viable assignments are done to avoid wastage or ineffective use of capital therefore reducing the level of spending. The country is in dangerous economic course the high level of spending affects the economic development of the country. Proper management including continuous audit can help reduce the debt of the country by identifying the loopholes of the resources.
Boccia, R., Fleming, W., & Woody, S. (2014). Federal Spending by the Numbers, 2014: Government Spending Trends in Graphics, Tables, and Key Points (Including 51 Examples of Government Waste). Retrieved May, 30, 2015.
Jennings, K., & Zott, L. M. (2013). The US deficit. Farmington Hills, MI: Greenhaven Press.