The federal budget runs in a fiscal year, which last from October 1 to September 30. The Office of Management and Budget first helps to create the federal budget. It is then sent to the president, the central part of the budgetary system, and he must check it, and afterwards it is sent to Congress. Another governmental structure involved in the budgetary system is the General accounting office. The GAO is responsible in making sure that the government spends its money on what is has budgeted for.
A continual aspect of the budget, is the deficit. Franklin Roosevelt believed that the government should spend more than it took in, in order to get the economy running again. He thought this would be a temporary adjustment to the budget, but it remained. When the Balanced budget came around, there were a lot of people who protested it. It was thought to not work because if they balanced the budget the economy would slow. The government would have to cut many government funded programs, and this would cause more problems with the budget. The Keynesian spending idea was that the government should be the central role in encouraging different types of economic behavior. When private spending decreased public spending should increase or taxes should be reduced. When private spending increased, public spending should diminish or taxes should be raised.
Politics have a great influence on the outcome of the budget. Since there are so many different arenas that rally for different spending in the budget it is hard to decide what should be budgeted for. There seems to be complete chaos because the government must please certain groups, but at the same time they must also let down others. The budget affects everyone from children to the elderly, and there are so many political groups that represent all these different types of people. It is really hard for the government to decide who they must please. This is why politics has a great influence on how the budget turns out.
Our current federal budget calls for many tax cuts over the next ten years. This is the biggest issue that our economy will have to deal with, for it is a big change from the last 8 years. As a democrat I believe that these tax cuts may lead to a weaker central government. Although it may be good for the rich, who will be able to keep more of there money, it will not be beneficial to the majority who are middle to lower class. This in turn could cause a political and even more a economic crisis. Politically for those supporters of the democratic party, and those who wish to have more government funded programs.