Why has budget deficits become the normal for federal, state, and local governments? How does the federal government finance its public debt? Explain your response.
Why has budget deficits become the normal for federal, state, and local governments?
PUA 534- BUDGET MANAGEMENT: FALL SESSION 2020: ASSIGNMENT NO. 2
Length: Five (5) Type Written Pages. Double-Spaced.
BUDGET DEFICITS, PUBLIC DEBTS AND BUDGET REFORM: A REALITY CHECK
Budgeting is a critical component of governance, whether it is on the federal, state, or local levels of government. Because of budget deficits and continued borrowing, governments have sought a complete overhaul of the budget process to make it more efficient, more manageable, and more disciplined. The deficit fundamentalists are right that the debt cannot be allowed to grow forever. And also the government cannot set budget policy without any limiting principles or guides as what is and what is not possible or desirable.
REQUIRED:
Firstly, why has budget deficits become the normal for federal, state, and local governments?
Secondly, how does the federal government finance its public debt? Explain your response.
Thirdly, How does the U.S. Virgin Islands government pay-off its public debt? Explain your response.
Fourthly, why have budget reforms failed in the past?
Finally, what are the benefits of budget reform if implemented successfully?
