The budget deficit recorded in the United States budget for fiscal year 2013 was $680 billion. However, this deficit was experienced due to the fact that the estimated outlays were over and above the expected receipts to be accrued by the government. Consequently, this was the smallest budget deficit recorded in the US budget since 2008. Hence, this would be a sign of a reduced deficit in the future budgets. As the person in charge of government budgeting I would undertake various measures which would help to reduce the budget deficit. To begin with, the deficit is caused by the fact of increased government spending which suppresses the available revenue.
Hence, as the budgeting head I would reduce the levels of government spending either by cutting some developmental outlays that the government anticipates to carry out. Secondly, I would also impose a policy which seeks to increase government receipts so as to increase budget financing. This would be made possible by imposing some taxes on non food items so that the taxes do not present an economic crunch to the public. Lastly, I would also search for funding from grants and concessions form willing partners so as to enable the amount of receipts to be higher than the outlays and achieve a balanced budget.
Total Receipts
Total Outlays
The current budget deficit would have some impacts on the Gross Domestic Product (GDP) and the national savings of the US. It is prudent to note that the deficit would lead to more taxes so as to finance it and hence this would reduce the disposable income of the households. Consequently, a reduction in the individual incomes would also lead to a decrease in the GDP as well as in the national savings. In the President’s budget message, some of the key points that are highlighted include; the reduction of budget deficits in the future, financing the new defense strategies, and increasing the funds in healthcare sector through increased funds in Medicare and Medicaid.
