- May 7, 2020
Debate Police and Civilian Budget Preparation
Debate:Police and Civilian Budget Preparation
Debate:Police and Civilian Budget Preparation
Jenningsand Zott (2013)define budget deficit as an indicator of the financial health of astate where the amount of expenditure exceeds the revenue. In mostcases, budget deficit refers to the spending by the government ascompared to person or organization although it can apply to allentities. The deficiencies occur every year when the expenditure bythe government exceed the amount it collects through taxes. Thenational debt or budget deficit in 2014 was $486 billion. Thegovernment spent approximately $28,800 on each family and it wasstill experiencing a shortage of $ 4000 per household. A study fromthe article shows that the national deficit in 2014 exceeded 145,000US dollars per family. The national debt in 2014 equates to $4,000per family. The government borrowed fourteen cents of each dollarthat it spent in 2014. Discretionary spending is part of thecountry`s budget that the finance department makes every year(Boccia, Fleming &Woody, 2014).The analysts project the spending to increase by twenty-nine percentover ten years when the lawmakers enforce sequestration. From 1994 to2014, discretionary spending was changing spontaneously.Discretionary spending in 1994 was $793 billion and amounted to $1153in 2014. Therefore, the percentage increase in the discretionaryspending over the last 20 years is equivalent to 45.3 percent. Aperson can calculate the rate as follows:(1153-793)/793=0.454*100=45.4%.
Entitlementprograms are approaches by the government that guarantee variousbenefits to a particular segments or groups of the population. Entitlement is among the mandatory spending of any country andincludes security of the state, social security and health concern.In United States, Obamacare is among the entitlement programs thathave been effective in controlling the sanitary conditions of thepeople all round the country. The entitlement programs have beencontributing to increased debt of the country and the federalgovernment has projected that the spending would further increaseover the coming years. The major entitlement programs in the countryinclude health care programs and social security program. Medicare isa health care program that has the largest consumption and thereforeis 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 beenincreasing the government spending, therefore, increasing the federaldebt. The country expects the program to surge seventy-seven percentover the ten-year period. The spending by the program in 2014 was$603 billion and the economists project to increase to $1.04 trillionin 2024. Therefore, the social security program is the greatestdriver of the national debt in the country.
Thearticle shows that the Obamacare spending will increase over thecoming decades because of the massive expansion of subsidies andMedicaid. The tax credit has made it difficult for the continuoussuccess of Obamacare. The tax credit has made it difficult forObamacare to entice small business owners in offering expensivemedical coverage. The small business tax would help in raisingadditional revenues that can assist in reducing the cost of healthcoverage by aiding expansion and improvement of subsidies andMedicaid. The small business tax can help in purchasing coverage ofhealth benefits of small businesses, therefore, boosting theeffectiveness of Obamacare. Small business tax can help the programto entice employers in offering proper health coverage. The fastestgrowing entitlement program in the country is Medicaid and there isan expectation that the program will grow by 87 percent over theten-year period. The medical program is growing at a faster rate andis supposed to raise the level of the government spending andtherefore to increase the national debt.
The threenational programs that are increasing the debt of the country at ahigher pace are the health care programs that have been increasingthe debt of the country at a faster pace. The spending on the healthcare program has been projected to reach $1.9 trillion in 2024 from$845 billion in 2014. Social Security is the largest program in thecountry (Boccia etal., 2014).Through the program, the amount of spending in the country has beenincreasing and has encouraged borrowing from other countries,therefore, increasing the debt of the nation. The social securityprogram is projected to increase the spending by 77 percent by 2024.The spending on Medicare program has been growing with the increasingdemand for the services by the clients. The Medicare program isforecasted to go up by 72 percent reaching $1.04 trillion in 2024from $603 billion in 2014. The citizens are the primary beneficiariesof the program through enhanced security and medical conditions. Theprograms are financed by the citizens of the country through taxesand borrowing from other nations.
I agree thatour nation is on a dangerous economic course. The higher rate offederal spending has negative impacts on the growth of the economy.The spending by the state government has been increasing at a fasterrate, and the growth is not likely to be met efficiently through tax.Increased debt can hinder development processes in most parts of thecountry(Boccia et al.,2014).The increase in the budget deficit has been affecting the taxpayersby making them to contribute higher percentages of their income astax. It is important to incorporate strategies that help in makingsure that the spending of the government does not exceed the actualamount of resource that is available. The various programs in thecountry have been encouraging the state to increase the amount itspends. The deficit of the country has been growing rapidly, andthere is an expectation that the debt will have increased by 151percent by 2024. The level of spending in the country by thegovernment is expected to increase therefore increasing the budgetdeficit of the country. Even if the tax revenue would return theiraverage level, the deficit would still be higher because the spendingis growing at a faster rate that tax collection. In 2014, the countryexperienced a deficit and had to borrow fourteen cents for eachdollar it spent to meet the increased spending.
Some of themost disturbing examples of waste by the government include lack ofproper inventory system for defense making the defense forceineffective in the use of ammunitions. The department is set todestroy ammunition worth $1.2 billion. The State could have put themoney proper usage improving the performance of the country. Thegovernment has been misusing the public funds. The Treasury sectorin the country spent $ 112.7 million in raising international anddomestic awareness of minor changes on the dollar bill. Mismanagementof projects that have resulted to more finances being used than theplanned amounts of resources while the projects remain uncompleted.The defense sector spent almost $500 million in buying militaryplanes for the Afghan forces. The military has not yet used theplanes because they did not meet the requirements and theirmaintenance cost is high. The money could be diverted for proper usethat could have helped in productive sectors. The misuse of $3.3million by the defense to pay for the Afghan army radio because thedepartment failed to follow the procedures shows the wastage ofresources by the government. I think the countries offering financialassistance will no longer tolerate the national debt and will callfor repayment when the federal government shows little effort inreducing the amount of spending. The lenders may feel that thecountry will not be in a position to pay the debt, therefore, cuttingdown their assistance and even asking for repayment of the debt. Thegovernment should contribute by putting effective measures to reducemismanagement of finances that could hinder them from gettingassistance from other countries.
Boccia et al., (2014) statethat cutting the spending by the federal government would help reducethe amount that the country is borrowing from other countries. Thefederal government should audit the operations of the variousgovernmental programs and departments to help in reducing wastage offinances. The government should follow up the financed projects toensure that the assignments are completed within the required timeand with the budgeted funds. The government should impose a tax onall people based on the revenue they gain to help in financing theinternal operations of the country. In addition, it is important toevaluate the effectiveness of the programs before implementing.Proper management can assist in using the available resourcesefficiently. Following the set procedures in purchasing the productsand offering services would help to reduce wastage of resourcestherefore reducing borrowing.
A countryexperiences budget deficit when the spending exceeds the collectionsor the available revenue in the government. Various programs adoptedby the state government have been increasing the spending making thecountry to operate in large debts. Reducing the spending by thefederal government helps in reducing the debt of the countrytherefore maintaining the economic welfare of the nation. Thegovernment should be involved in managing all the financial resourcesand projects to ensure that only the viable investments are done toavoid wastage or ineffective use of capital therefore reducing thelevel of spending. The country is in dangerous economic course. Thehigh level of spending affects the economic development of thecountry. Proper management including continuous audit can help reducethe debt of the country by identifying the loopholes of theresources.
Boccia, R., Fleming, W., &Woody, S. (2014). Federal Spending by the Numbers, 2014: GovernmentSpending Trends in Graphics, Tables, and Key Points (Including 51Examples of Government Waste). RetrievedMay, 30,2015.
Jennings, K.,& Zott, L. M. (2013). TheUS deficit.Farmington Hills, MI: Greenhaven Press.