1 / 16

Understanding Government's Financial Statements & Fiscal Budget

This lecture series provides an overview of government budgeting, including the differences between corporate and government planning, the components of the federal budget, and the measurement of government performance through surplus and debt. It also explores government revenues and expenses, as well as tracking the performance of the budget in relation to the economy.

jsanford
Download Presentation

Understanding Government's Financial Statements & Fiscal Budget

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Lecture Series #3 Budget Planning, Implementation and MonitoringStep Three: Understanding Government’s Financial Statements & Fiscal Budget Chris Droussiotis September 2011

  2. Table of Contents • Corporate Vs Government Planning • An Overview of Government / Public / Federal Budgeting • Constitution Economics • Public Finance – Managing Debt These slides could be obtain via the Instructor’s Web page at www.celeritymoment.com

  3. Corporate Vs Government “Profit & Loss” • Profit • Net Income/(Loss) • Exceeding Budget • Corporate Taxation • Not for Profit • Surplus / Deficit • Meeting Budget • Investment Taxation

  4. What is the Federal Budget • A plan for how the Government spends your money. • A plan for how the Government pays for its activities. • How much revenue does it raise through different kinds of taxes • A plan for how the Government manages it’s Debt obligations

  5. What is the Federal Budget

  6. What is the Federal Budget

  7. What is the Federal Budget

  8. Government’s Goal: Balance Budget REVENUE Less EXPENSES Surplus Deficit Borrow more Debt Pay Down Debt Balance Budget Approach

  9. Government Revenues • Government Revenues • Individual Income Taxes • Corporate Income Taxes • Social Insurance Payroll Taxes • Social Security Taxes • Medicare Taxes • Unemployment Insurance Taxes • Federal employee retirement payments • Excise taxes – taxes on alcohol, tobacco, transportation fuels and telephone services • Miscellaneous Revenues including Estate and Gift Taxes, Customs Duties, Fines, penalties

  10. Government Expenses Government Spending • Mandatory Spending • Social Security • Medicare (elderly and disabled) • Medicaid (poor) • Other Mandatory • Food Stamps • Supplement Security Income • Child Nutrition • Veterans’ Pensions • Discretionary Spending • National Defense • International Affairs • Technology, Space, Science • Energy • Natural Resources & Environment • Agriculture • Commerce and Housing • Transportation • Education, Training and Social Services • General Government Interest Payment

  11. Tracking Performance of the Budget Vs Economy

  12. Tracking Performance of the Budget Vs Economy

  13. Tracking Performance of the Budget Vs Economy EBITDA

  14. Assessing Government’s performance • Coverage Ratio = The First performance measurement • Projecting Expenses – Mandatory • Adjusting Expenses – Discretionary • View on the Economy and Outlook • Achieving desired Growth • To Increase Tax or not to • Tax Incentives on Investments / businesses / lending • Debt Management (Payment / Borrow)

  15. Assessing Government’s performance The Relationship of Surplus and Debt = The Second performance measurement

  16. Assessing Government’s performance The Relationship of Surplus and Debt = The Second performance measurement • Capital markets • Coupon Vs Yield (secondary) • Maturity (short Vs long) • Other Concepts: • Quantitative Easing (QE1 & 2)

More Related