Page 10 - Book2E
P. 10
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A Budget is a Plan
In broad terms, a budget refers to a list of all planned expenses and income (revenue). The budget of a federal, state, or local government is a summary of, or plan for, the expected revenues and expenditures of that government. In the United States, the Federal budget is prepared by the Office of Management and Budget, and submitted to Congress for consideration. It’s no secret that Congress makes many changes. Nearly all 50 states in the U.S. are required to have balanced budgets. Only the Federal Government is allowed to run deficits.
A government budget is a legal document that is often passed by legislators and approved by a state’s governor or the country’s chief executive or president. Typically, only certain types of taxes and revenue may be imposed and collected. For example, property tax may be the basis for local revenues, sales tax the basis for state revenues, and income tax and corporate taxes the source for national revenues.
What is a Budget?
