Chapter 16, Problem 16AA

To determine

To ascertain: the time taken by the federal government to prepare a budget.

Explanation of Solution

The federal budget, rather than the calendar year, is based on a fiscal year. The spending is measured from the beginning of the fiscal year, from October 1 to September 30 of the following year. The preparation of the President's budget usually starts in the spring or early summer of each year, at least 6 months before the budget is submitted to Congress, approximately 15 months before the beginning of the fiscal year to which it applies and approximately 26 months before the end of that fiscal year.

Budgets can be invoked to perform different functions like Planning, inspiration, and assessments are the main tasks involved. Planning Operational budgets are plans; they include specifics of when and how the management aims is tobe accomplished.

Economics Concept Introduction

Introduction: The budget is an important instrument to ensure economic growth for the country.It aims at accelerating economic growth for the region. Based on economic conditions the government calibrates its fiscal strategy. When there is inflation, for example, the government will come up with the policy of surplus.