The Federal

Budget and You!

Ms. Vertalino - May 21, 2014
What is important to you?
If you were creating a budget for
yourself what items, would you be sure
you included in it?
The Federal Government
The Federal Government also budgets the
money that it has to spend.
This is part of FISCAL POLICY!!!!!!
Fiscal Policy is the federal
governments use of taxing and
spending to affect the economy.
What goes into the Federal Budget?
What does the federal government be spending
money on? How much should it spend on each of
these things?
Defense and International Security
Assistance
This category includes all of our national
defense forces including, military forces,
and international security forces such as
FBI, CIA, and UN Forces.
Non-Security International
This category consists of international affairs spending except
for international security assistance. This category includes
any money that is sent overseas in form of relief after disasters,
as well as our foreign diplomats.
Social Security
This category consists of all money relating to
Social Security. Including retirement benefits for
the elderly, benefits for those who have lost their
job, and benefits for the disabled and survivors.
Medicare/Medicaid
This category consists of the Medicare costs, and premiums, as
well as the Grants to States for Medicaid.
Remember Medicare = Care for the elderly
Medicaid = Aid for low income families
HEALTHCARE

Safety Net Spending
This category of programs includes all programs in the income
security. Meaning the money we have saved to pay essential
workers during a government shutdown as we experiences in
2013.
Benefits for Federal Retirees and Veterans
Benefits for federal retirees and veterans: This
category combines the veterans' benefits and
services spending and the federal employee
retirement and disability spending.
Science and Medical Research
This category consists of the general science,
space, and technology spending, as well as health
research and training spending.



Education
The education category combines three types of spending for
education, training, employment, and social services function:
elementary, secondary, and vocational education; higher
education (college); and research and general educational.
Transportation
This category consists of the entire transportation
function including highways, roads, and
government vehicles including planes.
Interest on Debt
This category contains the net interest function, all
of the money we are paying back to other
countries.

Ideas to Know!

=spending that is required by current laws

=spending the government must authorize every year.

Which items that we talked about are mandatory? What items are discretionary?