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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? ...


34

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 ...


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 for the ...


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 ...


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 ...


15

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 ...


14

Evsey David Domar came up with a model that links these figures: Debt limit = Fiscal deficit ratio / (Real growth rate + Inflation rate) So for a 60% debt limit, a Fiscal deficit ratio of 3% and an ECB inflation target of 2%, you need 3% real growth. All nice round numbers. This was assumed to be achievable - the introduction of IT meant that the 90s had a ...


9

TL;DR The rule has no economical meaning and no theoretical foundation. 3% of deficit per GDP is slightly higher than what could be expected in June 1981 for the forthcoming year in France. The figure looked convenient. That's how it was adopted. The history of the deficit per GDP ratio is amazing. It was created by two bureaucrats in France in June ...


8

Actually Germany might fit because various public agencies can and do keep reserves. Going into the reserves is automatic once unemployment claims go up and insurance premiums go down (they're tied to income). When the shortfall is significant, there are calls to balance it from the general budget, but the reserves are used first. In 2019 the unemployment ...


8

Here are some details on what got cut this year from the CDC (note: there were cuts in the previous Trump years as well) Among its proposals for CDC, the White House budget calls for a more than $236 million cut to chronic disease prevention and health promotion, a $146 million cut for the National Institute for Occupational Safety and Health, a more than ...


7

The Chancellor is allowed to do this as a matter of tradition, as the OP's link says. There's also a practical reason: the Budget speech is often long and complex, and a boost to their morale during the process is reasonable. Many of the details of operation of the UK parliament are traditions, rather than written rules. The tradition goes back to at least ...


7

That would be the OBR, the Office for Budget Responsibility. From Wikipedia: The Office for Budget Responsibility (OBR) is a non-departmental public body funded by the UK Treasury, that the UK government established to provide independent economic forecasts and independent analysis of the public finances. It was formally created in May 2010 following the ...


7

The german debt brake, as you have already suspected, is indeed the example you are looking for, as it was created precisely for that purpose. Let me quote from the german constitution : "The budgets of the Federation and the Länder shall, in principle, be balanced without revenue from credits. The Federation and Länder may introduce rules intended to ...


6

There are specific restrictions imposed by the EU, though most of these are based on historical taxation. Since 2001 sanitary products have been subject to VAT at a reduced rate of 5% The BBC covered this in a reality check around the time of the Brexit Referendum. Reality Check verdict: EU rules mean the UK cannot reduce VAT on goods and services below ...


6

Table 7.1 includes both external debt and internal debt. Table 1.1 is the external deficit. Internal debt means money that one part of the government owes to another part of the government. The largest portion of internal debt is the Social Security trust fund. Social Security usually takes in more money than it needs to pay current expenditures (2011 ...


5

One of the reasons the government pushed the budget was to enable a Guaranteed minimum income law in Italy. This was one of the main campaign promises of the first party in that government since inception. Such a law was considered necessary to sanely compete with fellow member states in attracting foreign talents, stop young people emigration and ...


5

Is there some actual significance to these 10-year periods? Yes, it's the law. 2 U.S. Code § 933. (d) OMB PAYGO scorecards (1) In general OMB shall maintain and make publicly available a continuously updated document containing two PAYGO scorecards displaying the budgetary effects of PAYGO legislation as determined under section 639 of ...


5

Sweden has exactly that, it is called överskottsmålet (literally surplus target). There is a legal requirement that the governmental budget should run with a surplus over an economic cycle. From the early 90s until 2007, that number was 2 % of GDP, in 2007 it was decreased to 1 % and since last year it is ⅓ %. If you look at the Swedish public debt in the ...


5

The Swiss "Schuldenbremse" does exactly this. Article 126 of the Constitution: The Confederation shall maintain its income and expenditure in balance over time. The ceiling for total expenditure that is to be approved in the budget is based on the expected income after taking account of the economic situation. Exceptional financial requirements ...


3

The World Bank seems to have military spending as a percentage of GDP for very country, including the US since year 1960:


3

Because these contributions are targeted specific Programmes and activities, and these Programmes are usually not constantly running. The WHO document, Voluntary contributions by fund and by contributor, 2018 (PDF, page 6) shows the following categories of contributions by the US: Core voluntary contributions account — $0 Voluntary contributions — core — $...


3

To give you a simple answer Yes! State govt can issues bonds and are publicly traded on BSE. Here are specifically Delhi issued bonds. Not sure how authenticated are these at IndiaMart.


3

tl;dr - The mechanics of a government purchase are about the same as any other kind of purchase. They have bank accounts which they can make purchases out of. The Federal Reserve acts is the bank that holds the U.S. Government's accounts. None of this has any significant connection to the Treasury's role of printing or minting currency. Fund Accounting U.S....


2

I don't have the details either, but it's basically EU subsidies. As point out by Erwan in the comments, they chiefly revolve around farmers and fishermen. There's also a laundry list of grants for research and startups. And while not technically private entities directly, there are also grants for public interest projects -- think roads, metro or tram ...


2

There are several reason that projections are over 10 years. The primary reason is that many initiatives take several years to implement, so using a 10 year period can more accurately capture the effects. For example, building a four lane bridge takes years of planning and construction, and will likely cost billions. After it's built their are possible tolls ...


2

There is no payment schedule as such - we can see from the US statements of account published by the WHO here, and available (for the US) back to 2012, that payments over the last 8 years have been made at fairly random intervals, and never before the payment's due date. The last payments made by the US were in January 2020, roughly a third of which went ...


1

I'm pretty sure that nearly all countries have that hidden sack for a bad day. Russian equivalent of it is Stabilization Fund with a very simple rule: when the price for Urals oil exceeds the set cut-off price, money goes to that fund. when the price for Urals oil hits lower than cut-off price, money may be used to fill budget deficit. That cut-off price ...


1

What are the current House's bill reconciliation rules regarding deficit increases? Budget Enforcement Procedures: House Pay-As-You-Go (PAYGO) Rule, Updated August 12, 2019. Actions in the 116 th Congress At the beginning of the 116th Congress, in adopting the rules of the House, the new Democratic majority reinstituted the PAYGO rule, replacing the ...


1

Are there any [fully independent--let's say UN recognized, so we don't into an argument about this] countries that have a supermajority provision on the entire budget? ... If not, is there any country where there are substantial per-item/per-issue supermajority budget-approval requirements? I think no, for these two questions. The International Monetary ...


1

At http://budget.ontario.ca/2019/chapter-3.html#section-6 under the paragraph titled "Tourism, Culture and Sport" it says Actual 2016–17 Actual 2017–18 Interim 2018–19 Plan2019–20 Tourism, Culture and Sport (Total) 1,561 1,590 1,552 1,493.4 which hints at a planned cut by ~4% in 2019-20 ...


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