The sources of revenue for federal and the other budgets are mainly different tax revenues, which are collected by the federal government of United States. The taxes are levied upon the citizens of the country and the extracted revenue is further injected in the welfare and development of the nation. The primary sources of the total revenue collected in each fiscal year are income taxes, social insurance taxes and corporate taxes. Among these taxes, the bulk of the total revenue is collected from income taxes and the social insurance taxes.
There are excise duties and other taxes on estate and gifts which forms the smaller proportions of the total revenue. These sources of revenues are generally sum up the total budget revenue of federal government of the United States. However, the state budget has the revenue collection mainly on the basis of property taxes and the sales taxes. The local budget and the agency budget mainly rely on the cash allotment to them by the Office of Management and Budget (OMB). Hence, their main focus is on maximizing the allotted amount of cash by preparing significant budget request according to the President’s wants.
(The New York Times, 2010) Revenue projections The revenue generation for any nation is dependent hugely on the prevailing tax structure in the economy. Hence, every country regulates there tax structure in their budget for the enhancement of the total revenue. Every economy has significant effect on the tax revenues and if the economy becomes unstable then it has direct effect on the revenue collection. At present scenario of recession, the United States government’s tax collection was significantly reduced and there was huge fall in the corporate taxes.
The revenue collection is projected to increase in the forthcoming fiscal years after the fading up of recession in United States. The revenue base seems to shift more on the individual tax payers in the forthcoming fiscal years than the corporate. Congressional Budget Office (CBO) calculates long-term baseline projections of revenue collection, which is immensely useful in the process of budget making. In case of federal and state budget, the revenue generation is enhanced by regulating the tax rates and excise duties.
Whereas, in case of local and agency budget, the primary focus is on preparing the budget request in such a way that the need for revenue enhancement can be established to the OMB, who grants the budget request and allot the cash requirement. (Amadeo, n. d) Budget and the mission of each domain Every budget has some mission and goal attached to it, which it tends to address and achieve in the forthcoming fiscal years. As our discussion is mainly based on the budgetary aspects of United States hence, at first we would like to discuss the mission of the federal budget.
The federal budget is prepared keeping the economic growth and development of the nation in mind. Hence, its mission and goal is to overcome the financial crisis of the economy and subject its resources to the welfare of the country. Thus, the federal budget aims to allocate required cash amounts to every associated department of public welfare and social security of the country. The state budget in the similar way aims at the social welfare of the state and the people living in the state.
However, the local budget and the agency budget have very specific objectives to fulfill unlike the federal and state budget hence; their spending in the budget reflects that particular objective. Thus, every budget is prepared by the respective authorities in line of the mission of each domain. Areas of improvement There are lots of areas of improvement in the budget structure of United States keeping the present scenario in mind. Every budget is related to the federal budget hence, we focus on the areas of improvement in the federal budget. There are mainly two ways to improve the budget and combat the sovereign debt crisis.
One is by the way of raising tax rates and another is by cutting down spending. Owing to the present unstable political scenario, both the ways seems to be difficult to implement in the United States. Hence, any drastic change might not be very helpful in sustaining the recovery process. So, a gradual decline in the government spending and few regulations on the tax structure in the federal budget might be helpful in recovering the economy from the sovereign debt crisis. These regulatory steps on taxes would also be helpful for the state, local and agency budget as all of them are interrelated to the federal budget.
However, the cut in government spending would not be much helpful to the agency budget as their cash allotment would also experience a cut. For the proper estimation of the revenue, the accounting standards should be used more accurately as the guidance tool of tax revenue estimations. (Amadeo, n. d) Conclusion In the above discussion we tried to focus on the major forms of public budgeting in light of their process of revenue generation and spending. The forms we discussed are federal budget, state budget, local budget and agency budget.
The federal budget is the main budget of United States and is being proposed by President to the US Congress. The budget is dependent on the Congressional decision and acceptance and once they are convinced the bill is passed. The main source of revenue in the country is tax revenue and hence, to enhance the budgetary fund, the tax structure should be regulated. The present political scenario is not very helpful in enhancing the budget fund and recovering the economy from debt crisis. So, the government needs to cut off its spending to balance out the budget deficit. Reference: 1. Budget of the US Government – Fiscal Year 2011, (2010).
Office of Management and Budget. Retrieved on May 15, 2010 from: http://www. whitehouse. gov/omb/budget/fy2011/assets/message. pdf 2. US Federal Budget, (2010). Overview. The New York Times. Retrieved on May 15, 2010 from: http://topics. nytimes. com/top/reference/timestopics/subjects/f/federal_budget_us/index. html 3. Budget Analyst — Federal Agency Money Matters. (2010). The Process. Retrieved on May 15, 2010 from: http://www. budgetanalyst. com/Process. htm 4. Amadeo. K, (n. d). FY 2008 Federal Revenue Budget. About. com: US Economy. Retrieved on May 15, 2010 from: http://useconomy. about. com/od/fy2008budget/p/2008_Revenue. htm