Question

There have been various attempts and approaches to reform the federal budget. a) Discuss the justification for reforming the federal budget; b) Discuss the various measures that have been proposed or employed to reform the federal budget since the 1980s including the successes and failures of each of these measures; c) Discuss the legal/constitutional challenges or issues that have been involved in trying to reform the budget and the results of these legal/constitutional challenges. d) Describe the current type of budgeting employed by the federal government and why does it continue to exist.

Answer 1

Refirming federal budget helps government tone diwn fiscal deficit as percentage of GDP and helps eliminate discretionary spending which is no longer required.

The most successful methid is taking expert opinions and consulting views from Federal reserve and economic policy committee surveys which has taken holistic view of revised federal budget year in year. However the failed strategy is here is taking calibrated call and trying to pass the bill in Upper and lower houses to make amendments.

Constitutional challenges like lack of majority by single ruling party and multiple opposition allegations make passing revision of Federal Budget more complex.

US government itemizes sectors for which allocation of budgets is required and taking call as mandatory and discretionary sectors with intensity of impact it xan have on economic and market growth. This has continued so far since it helps analyse non performance sectors which have lower GDP contribution.