1- What items dominates the budget?
The items that dominate the budget include; education, infrastructural development and private sector initiatives. Other key areas that the budget focus on include creating more jobs for the people and focusing on revenue collection. Domination of items is based on the importance attached to them. Some of the areas that budget focus on are directly related to one another. For instance, in infrastructural development, when the sector is active, a number of jobs can be created as without much of a hustle. The budget focused on critical areas capable of boosting economic stability. In a sense, by looking at the budget, one can note that there were attempts to streamline the budget to ensure that a wide variety is factored into the budget (Diamond, 2006).
It is, however, critical to note that the budget had some of the characteristics that could not go unnoticed. The budget had deficits. This means that the money that was being budgeted for a good part of it was not at the disposal of the budget committee. The focus was, therefore, to identify other source sources through which the budget could be streamlined (Diamond, 2006). The budget preparation had followed all the criteria for budget making. This is testimony through the fact that all the programs that are established had been listed, and the expected funds allocated. Consequently, there were areas in the budget through which the budget could be reviewed. It is critical to note that the areas of focus in this budget were areas that were of critical value. There was a rationale for which every item was listed in the budget.
2- Why are the budget priorities as they are?
The budget priorities are that way because there is a need to meet other expectations. With a population of people largely jobless, the budget has been broadened to ensure that key sectors get moving so that people can find employment opportunities in such areas. By allocating funds for infrastructural programs, the aim is that the sectors should be able to create jobs for the people. Consequently, there are areas of needs that are critical to the people and how the economy runs. In this respect, the budget is set to meet those needs so that there are no gaps or deficiencies in key sectors of the society. In other words, the budget tended to focus on those areas that are considered most critical. Not all areas are critical to warrant inclusion into the budget (Rivlin & Sawhill, 2004).
The SOU budget as it is had its priorities set on meeting the needs of the people, economy and other key sectors for the purpose of dealing with gaps and fulfilling the desires for which a budget is set. Education, infrastructure, health and welfare issues are essential components that would ordinarily get a place in the budget. The budget committee had in mind the sectors that are critical to the economy. The sectors need to be focused on with respect to drafting the budget. It is, therefore, not surprising that the budget had the priorities set as they are. Critical components have been factored into the budget. The priorities in the budget are based on the needs that are seen as most critical.
3- Why the deficit?
The deficit is a result of spending beyond what is not at hand. In the budget proposal, there are items that are included in the budget that ordinarily consume more funds. As the budget proposal takes shape, the budget management committee does not have the total amount to fund all the projects that are mentioned. It means that other ways will be sought to fix the bu8dget gaps that exist. In essence, the problem is with overstating activities for actions when the funds for such projects are void. In fact, the budget proposal is an outline without the total amount as needed. Spending what is not at the disposal of the budget committee brings about deficits. It is, however, critical to note that budget deficits are a common phenomenon. Not all the time will the money available cater for all the needs as proposed (Courant & Gramlich, 2005).
At times, the projections are designed in such a way that the funds to fix the deficit are scheduled to come from other sectors of the economy. The March 4, 2014 budget, the deficit was eminent in the sense that the economy has previously operated on deficits. Deficits can be avoided with appropriate planning. To do this, the budget has to be done based on the available funds (Furgang, 2012).
4. What would you cut, drop, add, or change?
The budget as proposed provides a leeway through which numerous shortcomings can be established. For this budget, some cuts, drops and changes are needed to streamline the budget on a need basis. For instance, the changes will be needed with respect to tax proposals in the budget. Top earners that include the business executives and those in high offices, taxes, should be raised and set to some minimum standards. Consequently, there should be basic minimum taxes for those who are in the middle class. For those in the lower income brackets, they are to be exempted from paying some certain tax deductions. This would ensure that maximum revenue is collected to fund the projects as proposed in the budget. Taxes are key in ensuring that maximum revenue is collected. Therefore, blanket exemptions of paying taxes are to be avoided to ensure that everyone eligible to pay tax does so. Loopholes are to be sealed to ensure that there are no tax evasions. The things that should be dropped from the budget are varied.
5. How would you balance the budget?
Balancing the budget in essence means that there are neither shortfalls nor surplus. The budget as it is having deficits, though without any surplus. This means that the budget is not balanced. To make the budget balance, the first step would be to ensure that all the programs that require implementation are listed as appropriate. Secondly, and most important, would be to establish the funds needed for each of the projects (Diamond, 2006). After all that is done, the next thing would be to establish the amount that is at the disposal of the budget committee. From this point, prioritization would then take effect as appropriate. The projects that are not as critical would be sidelined to ensure that only the most essential projects are recommended (Taylor, 2012). Other sources of funding would be established to find out if there are other means through which the budget can be supplemented. The programs listed together with the amounts would then be equated to the total funds that are available for use.
The available funds should match the needs of the budget. Consequently, the most essential programs are to be included in the program. This is to ensure that the budget is not suffocated in any way. The essence of all these procedures is to ensure that the budget is explored as appropriate by ensuring that there are no limitations. Deficits and surpluses are the reasons for the processes. Though surpluses are never a bad idea in economic terms, they can be avoided by fixing other programs that are deemed critical. In the event that all these steps are adhered to as appropriate, the budget stands balanced where the available funds meet the programs that are to be carried out.
References:
Courant, P. N., & Gramlich, E. M. (2005). Federal budget deficits: America's great
consumption binge. Englewood Cliffs, N.J: Prentice-Hall.
Diamond, J. (2006). Budget system reform in emerging economies: The challenges and the
reform agenda. Washington, D.C: International Monetary Fund.
Furgang, K., & Furgang, A. (2012). Understanding budget deficits and the national debt. New
York: Rosen Pub.
Rivlin, A. M., & Sawhill, I. V. (2004). Budgeting for national priorities. Washington, D.C:
Brookings Institution Press.
Taylor, D. H. (2012). Balancing the budget is a progressive priority. New York, NY: Springer.
