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Budget Budget

BUDGET 2 4

Budget

Budget

The article in discussion focuses on the expenditure of the federalgovernment in the United States. So as to explain the spending byfederal government, the report highlights the division of theexpenses into mandatory spending, discretionary spending as wellinterest on the debt. The primary objective of this paper is toprovide an analysis of the article highlighting why the informationsubmitted is necessary.

The budget topic in the article is important since it providesone with valuable information regarding the government’sexpenditure. After the highlight of the budget for every fiscal year,people ask a lot of question since they think that the moneyallocated for the federal government is excess. However, the articleprovides relevant information creating awareness regardinggovernment’s expenditure.

Nevertheless, the federal government should reduce its spending,inflation being the sole reason. The rate of paymentby the government plays an important role when it comes to inflationmatters. In that, an increase of the expensesspearheads the rise in inflation while spending fewerleads to falling in inflation. Mosteconomies avoid inflation since it has adverse effects on the economyof the country.

Reduction in expenditure rate by the federal government mightnot be possible for two main reasons. Firstly, the economy is growingevery day, and the government needs to create more opportunities forthe people. So as to achieve this, they have to set up new projectson a regular basis, and this calls for an increase in expenditure(Kramer, 2012). Secondly, reduction of the expenses is unrealisticsince there are always emergencies which must beattended.

In conclusion, the article provides valuable informationregarding the federal government’s allocation of funds. Although itis proposed that they reduce theexpenditure costs, this might be unrealistic since the economy isgrowing and more money has to be spent to keep up.

References

Kramer, M. (2012). APeople`s Guide to the Federal Budget.New York: Interlink Publishing.