Question

The federal budget is defined as

A.

an annual statement of what policy actions the U.S. government has pursued.

B.

an annual statement of expenditures and tax revenues of the U.S. government.

C.

an annual statement of U.S. government violations of international laws.

D.

a monthly statement of expenditure laws passed by the U.S. government.

E.

a monthly statement of whether the U.S. government is in deficit or surplus.

Answer 1

Answer :

B : an annual statement of expenditure of tax revenues of the US Government.

The federal budget is the government's estimate of revenue and spending for each fiscal year.

The revenue for most governments comes from taxes. These include taxes on family incomes, business profits, and imports, such as custom duties and tariffs. It also includes sin taxes on activities the government wants to discourage, such as cigarette smoking and alcohol use. The government imposes use taxes on activities, such as gasoline, to pay for related activities, such a building roads. Pigouvian taxes impose costs on those who impose damages to society. An example would be a tax on manufacturers that pollute rivers.

Some countries derive revenues from state-owned businesses, such as oil companies. The revenue from these companies supplies revenue directly to these governments.

Federal spending is on activities that benefit the public good. Almost all governments spend on public safety and defense, transportation, and trade. Most also provide some social welfare payments, whether for unemployment compensation, retirement, and health care. The amount spent reflects the values and priorities of the society.