Budget and Fiscal Policy

Fiscal Policy: The use of government spending and taxation to influence the economy's overall health.

Budget Process: The steps and procedures involved in the federal budget process from proposal to approval.

Revenue: Sources of government revenue, including taxes, fees, and other types of income.

Expenditures: Categories of government spending, including mandatory, discretionary, and entitlement spending.

Debt and Deficits: The impact of government borrowing and interest payments on economic stability and growth.

Economic Indicators: Key metrics used to assess the health of the economy, including GDP, inflation, and unemployment.

Monetary Policy: The use of interest rates and money supply to regulate the economy.

Budget Constraints: How the federal government's budget is constrained by factors like legal mandates, entitlement programs, and interest payments.

Political Economy: The role of political considerations in shaping budget policies and fiscal decisions.

Public Finance Theory: The principles and theories that underlie fiscal policy and budgeting decisions.

Budget Cycle: The yearly cycle of budget preparation, implementation, and review.

Budget Monitoring and Evaluation: Tools and methods used to track budget implementation and assess its effectiveness.

Annual Budget: This is a budget made and approved each year that outlines the government's spending and revenue plans for the upcoming year.

Biennial Budget: This budget, covering a two-year period, is used by some states in the U.S. It allows for longer-term planning and budgeting.

Supplemental Budget: This budget is used to address unexpected or urgent needs that arise during the budget cycle.

Capital Budget: This budget outlines investments in long-term infrastructure projects, such as roads or public buildings.

Operating Budget: This budget details the day-to-day operating expenses of a government, such as salaries and wages.

Performance-Based Budget: This budget links funding to specific performance goals or outcomes, incentivizing efficient and effective use of resources.

Zero-Based Budget: This budget requires that each program or expense start at zero, with each item reviewed and justified, rather than simply continuing from the previous year's budget.

Balanced Budget: This budget requires that the government's spending and revenue be equal, with no deficit or surplus.

Deficit Budget: This budget spends more than the government collects in revenue, resulting in a deficit that is covered by borrowing.

Surplus Budget: This budget collects more revenue than it spends, resulting in a surplus that can be used to pay down debt or invest in future projects.

Countercyclical Fiscal Policy: This policy uses government spending and taxation to stabilize the economy during economic cycles: Increasing spending during downturns and reducing spending during upturns.

Expansionary Fiscal Policy: This policy increases government spending and reduces taxes to stimulate economic growth.

Contractionary Fiscal Policy: This policy decreases government spending and increases taxes to slow down economic growth.

Fiscal Rules: These rules, such as debt limits or budget balancing requirements, are put in place to guide government policy and constrain government spending.