Question
Using only.gov Websites report the current GDP, the current Federal deficit, the current Federal debt, and the bottom line of the current (last) budget approved by Congress (surplus or shortage). Note that the fiscal year for the federal government is October 1 – September 31.
What inference can you draw from the numbers collected?
Sample paper
Finance Homework
The government websites shows the current GDP of the United States of America is $ 18.819 trillion in 1st October 2015 – 31st September 2016. In the same period, the current Federal deficit was $0.478 billion and Federal debt $19.5 trillion (Price. 2015). Further, the current budget approved by the congress in 1st October 2015 – 31st September 2016 had a deficit of $0.5 trillion.
The GDP is $18.819 trillion in the period 1st October 2015 – 31st September 2016. This is a GDP growth of 1.4% compared to the period 1st October 2014 – 31st September 2015. It is a good growth but it is not sufficient enough to run the government. Thus, the government should prepare mechanisms necessary to stimulate other sectors of the economy.
From this information, the budget debt is $19.5 trillion. This is a high value and there is need for corrective measures as the national debt is at a treacherous path. This means that the government is borrowing money to finance its budget and the cash cannot be recovered from taxation. To curb the effect of the debt, congress need to establish spending caps, enforce fiscal sustainability, and reduce the government spending before they consider any surge in debt limit.
According to Price (2015), the Federal deficit is $474 billion after subtracting the total expenditure ($3.999 trillion) from total revenue ($3.525 trillion). This means that the amount of money the federal government is getting from taxation and other fund avenues is less than the expenses it is accruing in getting the revenues.
After Congress reviewed the budget, the deficit was $0.5 trillion. This is a large amount of money that the government should find a way to solicit for the fund. This involves reviewing their tax procedures and mechanisms to ensure that they are sufficient to be able to fetch sufficient revenue to run the government.
References
Price, T. (2015, April). H. Con. Res. 27-114th Congress (2015-2016): Establishing the budget for the United States Government for fiscal year 2016 and setting forth appropriate budgetary levels for fiscal years 2017 through 2025. In https://www. congress. gov.
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