Economics Principles and Practices
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Chapter 10: Government Spending
"Understanding the Federal Budget"

You have already learned that the federal budget is an annual plan outlining the proposed revenues and expenditures for the coming year. A good source for further information about the budget is the Citizen's Guide to the Federal Budget released by the Government Printing Office. This document is designed to provide an outline of how the government raises revenues and spends money; how the budget is enacted by the president and Congress; reasons for the budget deficit and debt; and accomplishments the president hopes to achieve with the current budget.

Destination Title: A Citizen's Guide to the Federal Budget

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Start at A Citizen's Guide to the Federal Budget Web site.

  • Select "What Is the Budget." This page provides a summary of information about the budget of the United States government. Read the article from the screen or print a copy of it. Then, answer the following questions.
1. After you read "What Is the Budget," summarize the explanation in your own words.

2. Select the "Where the Money Comes From--and Where It Goes" Web page from the options at the bottom of the page and read the following section. From what sources does the federal government raise revenues?

3. What major categories of spending comprise the federal budget?

4. If you wanted to lower federal government spending, which categories would you choose and why?


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