Budget Analysis


Inpreparation of budgets current and constant terms are used to referto currency. The constant value of the dollar is used as adjustedmoney to compare the value of the dollar from a given year toanother, used to keep track of economic changes. It shows what valueof the dollar at that time compared to the current market value ofthe dollar.

Federaloutlays in the United States have increased steadily since the early1900s. This has been as a result of various activities that have ledto increased spending by the government. To begin with the growth inthe government outlay has resulted from the activities of wars suchas World War 2, Korea War, Vietnam, bomb blast, and Iran andAfghanistan wars. To add on, recessions that hit the country fromtime to time also affected the country spending as the governmenttried to increase its spending attempting to reduce the effects ofthe recession. The increase in special programs and mandatorypragmatic programs also led to increased government spending. Thegovernment strengthened its expenditure on education and training.The government increased its spending by offering grants to statesand local governments. The introduction of unemployment assistance,farm price support, and veteran compensation programs lead toadditional expenditures.

Expenditureon the ground transport has increased this as a result of thedevelopment of infrastructure and population. Availability ofunderground commuter trains, buses, taxis has led to the increaseduse of ground transportation. Also, recessions have also affected theuse of ground transportation. The difficult economic situation pushespeople to use a ground system as is cheap and convenient to thecurrent economic conditions. The budget estimates that in near futurethere will be an increase in ground transport this might beattributed to projections of high population.

Spendingin the defense has a downward upward trend. Several factors havecontributed to this trend. First the breakout of world war two leadsto increase in spending by the military personnel. After the war, thespending reduced but the short upward again as a result of the KoreanWar. Again, the country was involved in the other war with Vietnamincreasing the budget spending by the defense. The spending droppedbut later rose after the bomb blast due to the mobilization ofdefense personnel and security staff. The Iran war and Afghanistanwar also led to the increase in defense spending as a lot ofresources were directed toward the war.5

Theintroduction of Pragmatic mandatory programs such as Medicare andMedicaid has had an upward trend. The spending from these twoprograms has seen steady increase from its introduction in 1970. Theavailability of cheap medical care and compulsory program incollaboration with high population and the need for health care hascontributed significantly to increase in spending in these programs.

Theexpenditure in the current dollars has increased as time passes,while the constant value of the dollar was affected in the mid-1950sbut then became steady. Its value continues to depreciate as the sameamount of current dollar is valued less in monetary terms in 2020.This indicates depreciation in value of the dollar.

Mikesell,J. L. (2014). Fiscaladministration: Analysis and applications for the public sector

Budgetof Us Government, FiscalYear 2016HistoricalTablesfile:///C:/Users/author/Downloads/Historical_Tables.pdf