The main goal of the creation of the federal budget is to decide how to manage the government’s tax revenue and expenditures. Therefore, the correct answer is c.
The federal budget is made of the spending and revenues of the government. It is a detailed plan towards the annual public revenue and spending of the United States Federal government.
<h2>Further Explanation</h2>
The US federal governments used the federal budget to funds or finance its many expenses such as
- Payment of the salaries of federal employees
- Payment for the equipment of the military
- Dispersing subsidies on agriculture
The fiscal year of the Federal government starts on October 1 and ends on September 30 of the following year.
The revenue for the federal government of the United States comes from tax revenues.
The tax revenues are those on the following:
- Family incomes
- Custom duties
- Tariff
- Business profits
Some of the activities that the government also imposed the use of taxes include
- Cigarette smoking
- Alcohol consumption
- Gasoline
However, there US federal budget contains 2 kinds of spending, which are
- Mandatory spending
- Discretionary spending
Mandatory spending is federal government spending on particular programs that are mandated by law.
These programs include
- Medicare
- Social security
- Medicaid
Mandatory spending is also called as entitlement spending.
Discretionary spending is spending that are approved by the passage of individual appropriation bills.
LEARN MORE:
KEYWORDS:
- budget
- federal
- businesses
- tax
- government
- spending
- revenue
