Gov. finances 1
What is a fiscal year?
12-month financial planning period that may or may not coincide with the calendar year
What is the relationship between the national debt and the budget of the federal government?
The national debt grows whenever the government runs a deficit. The debt shrinks when the government runs a surplus.
Each House subcommittee prepares a(n) ___________, authorizing spending for certain purposes.
appropriations bill
One of the reasons it has been so difficult for Congress to bring federal spending under control is because
the federal budget has many entitlements that people do not want cut.
If I have more _____ than _____, I have a ______.
expenditures; revenues; deficit
How do taxes transfer purchasing power from the private sector to the public sector?
Taxes reduce the amount of money people have to spend, and increase the amount of spending that the government can do.
What is the primary source of revenue for the government?
Individual income taxes
What are spending caps?
Legal limits on annual discretionary spending
Expenditures for what government program are considered mandatory spending?
Social Security
The debt ceiling is the total amount of money that the U.S. government is authorized to ______ to meet existing commitments.
borrow