Question

What would you observe as differences between budgeting at the federal level versus budgeting practices/processes in Arizona (or at the state level)

Answer 1

There are differences between the budgeting at the federal level and the budgeting at the state level as the federal budget is from the perspective of central government and state budget is from the perspective of state where the revenues and expenditure are more concerned within the state. The one major difference between the federal budget and state level budgeting is that state are required by law to balance their budget while the federal government can run deficit. The federal government can borrow in excess of its revenue to meet its expenditure whereas the state governments have to balance their budget. State governments are more concerned with maintaining law and order and welfare of the people in the state where the federal government has to make budget for the spending on defense, international relations, aid to other countries and other things. The sources of revenue options for the state is far more than the federal government because most states would charge taxes on economic activity happening in their so the sources of revenue for the states are more. The federal government budget is more important in providing guidance to the overall economy of the country whereas the state’s budget is restricted to that state only.