1. Financing Government
Chapter 16

2. Spending and the Budget
Section 3
Spending and the Budget

3. Spending
In 2011 fiscal year, the government spent approximately $3.5 trillion.
Most spend on Entitlement Programs
Social Security, Medicare, Medicaid, etc.
Second Largest Expenditure is Defense Spending
Other major parts of the federal government’s spending includes interest on public debts.

5. The Federal Budget
Congress – and only Congress – has the power to provide the federal budget.
President initiates the process by requesting funds.
Office of Management and Budget does most of the work.
Budget proposal goes to each house’s budget committee.
Reviewed by Congress with the help of the Congressional Budget Office
Budgets also go to the House and Senate appropriations committee.
After much review and revision they make their way back to the President for approval.