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Budget Deficit: The American Recovery And Reinvestment Act

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A budget deficit happens when the government spends more than tax revenues, there is an overwhelming debt which increases interest payments. From 1985 to present, congress enables several deficits to control economic debt, which is up to the discretion of the president. Due to this issue there was an enacted law to utilize spending cuts called, Gramm- Rudman- Hollings Act. The fiscal adjustment is placed to accommodate economic changes. The US endured the recession until 2009, when the American Recovery and Reinvestment Act, in which this helped out business owners and others affected by the recession. Therefore, Congress had set goals to balance on an annual basis to reduce deficit.

The efforts to reduce the budget deficit conjure these policies …show more content…

This fiscal policy and acts are set to regulate the economy, taxation, expenditure and to prevent federal budgets that are dwindling. The parties involved include the budgeting office, treasury department and accountability within the United States government. There is a physical acquirement to use these accountants, financial consultants and budget analysis to create jobs that pay well, by investing in infrastructure and innovating education in our economy. There are a few measurements that can be taken to prevent the budget deficit, which includes cutting government spending, tax increases, and the promotion of economic …show more content…

A balanced budget is ideal where individuals and businesses will make payment plans to benefit our economy. The limitations and budgeting will affect our economy with stabilizing how our finances are utilized. In 2011, the house voted to reduce the amount of money dispursed, by deducting the package. The budget control act was set in place with the goal to obtain a budget deficit, that would be based on the economy. The acts stated were beneficial to the economy by altering the debt limit and how individuals were handling the fiscal policy in general. The use of the accountants, along with budget analysis and financial consultants were able to assess how to prevent the budget deficit from rising any higher. The control of spending cuts and annual targets is set in place to prevent exceeding the deficit limit. By doing so, will help to prevent another recession and actions that could destroy savings and cause more reasons to borrow, by reducing the fiscal policies. The use of deficit reduction plans will lead to a positive economic growth, where evaluation will lead to positive levels of the economy to

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