2 What will I learn in this chapter? How the budgetary process formulates and finances our national debt
3 What puzzles will I learn to solve? Can Uncle Sam go bankrupt? How does the national debt of the U.S. compare to the debt of other countries? Are we passing the debt burden to our children ? Who owns the national debt?
4 What are the four stages of the budget process? Formation of the budget Presidential budget submission Budget resolution Budget passed
5 What is the federal fiscal year? October 1 through September 30
6 What is the federal deficit? How much money the government borrows in any given fiscal year
7 What is the national debt? Amount owed by the federal government to owners of government securities
8 How does the U.S. Treasury borrow money? By selling securities promising to make interest payments and to repay on a given date
9 Federal Expenditures and Tax Revenues $2,000 $400 $800 $1,200 $1,600 10 7075 80 85 90 95 0005 $2,400 $2,800 Billions of dollars Revenues Expenditures