Hot answers tagged

110

The sum is quite small compared to the EU GDP, but that is not what you should be comparing it to. It would make more sense to compare it to the EU budget (as there the additional money would gradually end up to). According to this website (in the left side infographic in the page) the EU budget in 2011 (a bit outdated) was 129.3 billion euros. Compared to ...


100

You can think of the treasury of a government as a big pot of money. There are various streams of inputs (taxes, fees, fines, tariffs, new debt...) and lots and lots of streams of outputs (subsidies, welfare, wages for government employees, running cost of government departments, debt repayment, public construction projects, and many many more). But inside ...


75

First off, per the other answers so far, €50 billion (or €100) is by no means peanuts. More importantly, this article gives, I think, a reasonably level-headed breakdown of what the Brexit bill is about and what's at stake in practice. A large chunk of the money being asked for by the European commission was pledged by David Cameron, when he was prime ...


63

The 2% goal for defense spending of all NATO countries originates from the Wales Summit of 2014. However, the people who made that commitment are heads of governments, many of which don't actually have the authority to make budgeting decisions. This includes the German Chancellor. The Bundestag (German parliament) which actually has that authority never ...


58

The US public opinion is highly sensitive to casualties among US troops. They are much less concerned about casualties to contractors, especially if they are not US citizens. At times the US government has more money than available troops. At times deploying contractors is easier under domestic US law. Legal oversight is mostly designed with the official ...


55

It appears the problem isn't the deficit (the loss from an individual budget) but the size of the existing debt itself. From a report in the Guardian Italy’s public debt is worth more than 130% of the country’s GDP, the second-highest level in the EU after Greece and more than double the bloc’s limit of 60%. In effect, the EU don't believe that the ...


48

The reason is the same for any country, not just the US. And it is rarely money. It can be roughly grouped like this: public opinion damage control: the population of a country cares about the death of their military personnel. This is especially true for the military conflict with no clear goal for a population (whom are we saving in the conflict in X?). ...


48

Absolute and relative amounts Germany has come much closer to the 2% goal due to the COVID crisis -- the GDP went down, the defense budget stayed the same, so the percentage went up. Similarly, good years reduced the percentage without any defense cuts. Rejection of war as a means of policy. Germany has spent 40 years at the frontline of the Cold War, a war ...


46

A combination of: 1. Low per capita income While not among the very poorest countries in the EU, Poland is far from being the richest. Per capita income in Poland is $12680, compared with $43660 in Germany and $9470 in Romania. This means Poland's per capita contribution to the EU budget is comparatively low. 2. Large population Poland is much larger ...


44

Italy is not just planning a high budget deficit, it has a very high level of national debt. (As of 2017, it was 131.8% of their GDP, second only to Greece) This makes their deficit riskier than it would be for a country with a lower level of overall debt. Italian banks also own a lot of that debt, and there is a fear that government intervention in the ...


36

The 3% deficit floor and the 60% Debt-to-GDP ratio were part of the Euro convergence criteria of the Treaty on European Union (Maastricht Treaty). The framework is developed in Article 104c, with the specifics left to the Protocol on the excessive deficit procedure. As to where these limits came from, Luigi L. Pasinetti states in The myth (or folly) of the 3%...


35

I understand that the government collects taxes, sells bonds, etc. but regardless of the income portion, I'm more curious about the spending portion. Does the US Treasury simply print the money (physically or digitally)? Does the US Treasury have bank accounts/checking accounts? What role does the Federal Reserve play in this? ...


33

The convention in the UK House of Commons is that the budget vote also works as a confidence vote in the government. So losing a vote on the budget is taken as a vote of no confidence in the government (as is the vote on the Queen's Speech). The last time the government lost a budget vote was in 1885, when Gladstone's government lost 252-264 and the ...


32

Bottom Line Upfront: If you don't allow the military to plan for maintenance, but keep them working, then it will cost more to fix them when you start giving them money. Part of it is most certainly about pandering to his base. 67% of Republicans believe too little is spent on defense. Though, there is room for universal appeal, where this could be an ...


25

The main factor has to be the fear of public debt and symbolic importance of balanced budgets (schwarze Null) in the German political discourse. The notion that the state should avoid building up debt and strive towards a balanced budget every single year plays an oversize role in the way the German media and public judge many issues. That's not the case in ...


24

California has something like this, though it's not a nation (although it is bigger than most). The California Constitution was amended in 2004 and 2014 to create a Budget Stabilization Account (BSA), or "rainy day fund". After the modifications in 2014, the amendment: requires lawmakers to set aside 1.5 percent of General Fund revenues each year ...


23

These Authorizations are how Congress tells NASA what to do. The bill is not "required" because if a new one isn't passed, there's no change in the orders the agency has from Congress. The bill was introduced because the sponsors want to give new directions to the agency and it is being deliberated and modified because all the Congresspeople who need to ...


22

Best-case scenario? Fox News thinks the Wall will save lives by making it more difficult for cartels to bring drugs into the USA. Middle-of-the-road scenario? Stanford put an actual monetary figure into play with its research: for every 19 cents we spend on this wall, it will give about 1 cent worth of benefit to low-income US workers. Oh, and it wouldn't ...


21

A received payment is money you have. GDP is something entirely different. Politically, giving up 50 billion € is likely to be used against the politicians who are believed to be responsible, whenever they need funding for any project in the future. A budget has income and expenses. The income of the EU is around 150 billion € a year, and the expenses of the ...


21

Denmark spends a smaller percentage of their total budget on health care because their government budget in relation to their population is much larger. The US has a federal budget of $3852 billion and a population of 326 million, which means they spend $11793 per inhabitant annually. 28% of that is $3300. Denmark has a budget of $164.3 billion (converted ...


20

Point by point.... (all numbers for FY2012 unless otherwise stated) Total Revenues -- $2.469 trillion Total Expenditures -- $3.590 trillion 2012 Budget Deficit - $1.121 trillion (Above numbers are from the OMB) From the IRS raw data: Year -- Total income for those grossing over $1m -- Total taxable income over $1m 2007 -- $1.401 trillion -- $1.008 ...


20

The most obvious politician's argument against funding research in pure mathematics is that it costs money and it isn't useful. I'm aware that there is a point of view that holds that the state should not fund research of any kind, but it is very alien to my milieu, so I won't presume to explain it. As I'm closer to mathematicians than to politicians, the ...


19

Some basic facts If we look at previous years (using the dropdown menu in your link), we see that it used to be a lot less. The percentage of the budget allocated to health care over the years is: 2010: 23% 2011: 29% 2012: 27% 2013: 30% 2014: 33% 2015: ? 2016: 39% 2017: 43% 2018: 44% 2019: 45% 2020: 46%. In that, we see a clear increasing trend. Isn't ...


17

Two reasons. First, because there's simply no internal pressure to massively increase defense spending (over 50% in 10 years) in Germany - other answers cover that part in detail and from different angles. Also, for historical reasons the other European NATO powers do not apply external pressure to make Germany take the top spot when it comes to military ...


16

In a parliamentary system, the government is, by definition, the party (or coalition) of parties which controls the lower house (in the UK, the House of Commons). In particular, achieving parliamentary approval for supply -- i.e. the ability to spend money -- is a make or break issue for a government, akin to vote of confidence. If a government loses supply,...


16

Many countries have sovereign wealth funds in which they put their surpluses. Using these funds have several advantages: Clearly separates the budget funds from the surplus. Helps to shield the budget from variations in the income, specially if a significant part of the income is due to a single economic activity. Limits political interference in how the ...


15

UN Committee on Contributions is in charge of assessments The Committee on Contributions advises the General Assembly on the apportionment , under Article 17, of the expenses of the Organization among Members broadly according to capacity to pay. The Committee also advises the General Assembly on the assessments to be fixed for new Members, and on appeals ...


15

These are decided by the UN Committee on Contributions. UN resolution 70/245 of 23 December 2015, determines the contributions of Member States to the regular budget of the United Nations for 2016, 2017 and 2018. Decides that the scale of assessments for the period from 2016 to 2018 shall be based on the following elements and criteria:   &...


15

The budget is the annual finance act of parliament. The government needs to raise money by tax and the budget gives the government parliamentary approval for this. Without a budget being passed the government cannot function. Normally a government party either has a majority in the House of Commons, or is in a coalition with another party which gives it a ...


14

You are confusing the two distinct concepts: an appropriations bill and a budget. An appropriations bill is what provides the authority for the government to spend money. Article I, section 9 of the US Constitution prohibits the government from spending money without an appropriation: No Money shall be drawn from the Treasury, but in Consequence of ...


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