Question

The annual federal budget is the plan for obtaining and expending revenue of the federal government. In a minimum of two paragraphs, describe the source(s) of government revenue and the types of expenditures in the typical federal budget.

Answer 1

Government revenue

The main sources of government revenue are taxes, and specifically individual income taxes, paid by the employees and payroll taxes paid by the employers. Additionally, the government collects sales taxes and other fees such as custom duties

Government expenditures

The main expenditure is the provision of services such as Social Care, Medicaid and Medicare, but the government also pays for the defense (military) and further has a number of smaller expenses such as administration and science.