The main difference between the federal budget and the state and local budgets is the issue of a monetary deficit
The main difference between the federal budget and the state and local budgets is the issue of a monetary deficit, in which expenditures in the budget exceeds revenues that were estimated. State and local governments are required to balance their budgets. The federal government is allowed to borrow money to meet its obligations and have a deficit. The federal government collects the most tax revenue, but state and local governments have a greater range of revenue options for funding their budgets. The federal government relies mainly on income taxes, capital gains and Social Security taxes. State and local governments collect sales taxes, taxes on fuel, property taxes and fees from special licenses and permits. Also, many state and local Governments collect funds from state lotteries and taxes on alcohol and tobacco. When comparing Federal, State and Local Budgets, each one is slightly different. Each budget has its own goals and direction that they are moving toward. On the internet site: http://www.usgovernmentspending.com I was able to obtain several pie charts that breaks down the 2012 fiscal year budget for Federal, State and Local governments. These pie charts give a basic breakdown of the budgets for each level.
Figure 1: Federal Budget (Federal Budget Site). This budget shows that the largest portion of the federal budget is for Defense. This includes military spending for the troops in the Afghanistan and Iraq and Homeland Security. Since 200,1 this portion of the budget has increased from $297 billion to $740 billion in 2011. The next largest portion is both Health Care and Pensions at 22% of the federal budget each. Health care constitutes Social Security, Medicare and Medicaid. Social Security was established in the 1930s and was created to help older Americans. Before Social Security the responsibility of their well being was the responsibility of the community and the family. While the individual was working, they paid a small portion into a
Figure 1: Federal Budget (Federal Budget Site). This budget shows that the largest portion of the federal budget is for Defense. This includes military spending for the troops in the Afghanistan and Iraq and Homeland Security. Since 200,1 this portion of the budget has increased from $297 billion to $740 billion in 2011. The next largest portion is both Health Care and Pensions at 22% of the federal budget each. Health care constitutes Social Security, Medicare and Medicaid. Social Security was established in the 1930s and was created to help older Americans. Before Social Security the responsibility of their well being was the responsibility of the community and the family. While the individual was working, they paid a small portion into a