Question

Contrast the process of creating and passing a local budget compared to a federal budget ?

Answer 1

The following are two key differences in the process of creating and passing a local budget compared to a federal budget:

1. While the process of creating and passing a local or state budget requires balancing budgets, the process for creating a federal budget allows the government to borrow money when faced with a deficit.

2. The process of creating a federal budget allows the creation and printing of cash money in certain circumstances when required; whereas, local governments are not permitted to do the same.