...Budgetary Systems and Saudi Arabia Government Budgetary Systems Budgetary process of the US and Saudi Arabia are different from each other in many aspects. Budgetary systems of the US are based on the budget and Accounting Act of 1921 and Congressional Budget and Impoundment Control Act of 1974. Whereas budgetary systems of the Saudi Arabia are based on the rules and regulations devised by the Kingdom of Saudi Arabia. Budgetary system of the Saudi Arabia is not disclosed to the general public. National budget in Saudi Arabia compiled by the Ministry of Finance is approved by the Royal institution and then it is allowed to be published in the Official Gazette. Budgetary Systems of the Saudi Arabia was made on the basis of the Hijri year but in 1987 its basis was changed to the Gregorian calendar. In US budget is prepared when president submits a request to the congress for the preparation of the budget. Then Office of Management and Budget carries out the formulation process of the budget. Budget is prepared for all the institutions of the state from federal executive departments to the independent agencies. Budget Control Act of 2012 also plays its role to in the formation of the different provisions of the budget and controls it. Different resolutions related to the budget are also approved by the congress, House and Senate. Authorizing committee is capable of resolving any issues related to the budget process. Categories of the different types of the spending like mandatory spending...
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...crap. We have people out there busting their ass everyday for what? I understand that the economy is down right now but the government is not going anywhere. This freeze has hit me in a bad way. It's like no matter if I work hard or don't work at all, I'm still going to getting the same pay. There is no incentive for me to go out and try to get better at what I do. But I'm not like that because I have pride in what I do. It's just knowing that my pay is going to be the same until the freeze is lifted. The House Appropriations Committee last week approved the bill, which was silent on whether to allocate funds for a federal civilian pay boost. President Obama recommended a 0.5 percent pay boost for federal workers in his fiscal 2013 budget request. The civilian pay raise provision is frequently included in the financial services appropriations bill, which requisitions funds for several federal agencies. (Palleschi, P. (2012). Really what is a .5% pay raise going to do? That won't even pay the taxes on the money I make extra. I just don't believe what they are doing. We have contractors that work where I work doing the same thing I'm doing and making almost $9 more an hour than I am. It's funny how these contractors can go in and want so much for their contracts and the government pays it but can't even give their own employees pay raises every year. Do you think the contractors don't get pay raises? Sure they do every year, on top of...
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...On April until June, the treasury will analysis and examine the federal budget expenditure which had been prepared by each agency. In the first month which is in April the Budget Review Officer with representatives from Economic Planning Unit and Public Service Department will conducting Preliminary Hearing about budget process. In this step, they only discuss about policies and issues of a general nature. It is also purposely to check budget proposals with policy directives. As for next two months, they would hold a Budget Hearing. This Budget Hearing is conduct on May and June. The main purpose of Budget Hearing is to examine the request of the staff by the Public Service Department. In addition to that, Budget Hearing also ensuring that annual budget proposal conforms to the five years development plan. Other than that, the purpose is to consider the physical as well as financial performance for past years and look at the government financial position and New Economic Policy objectives. Next month, consolidation of the federal budget expenditure would be conducted by treasury. On August to September, in order to make an approval by Ministry of Finance and Cabinets for the federal budget expenditure, the dialogue session will be conducted. They will consider on every significant business and group community. This dialogue will be last for last two weeks and cover consultation with Malaysian Institute of Economic Research (MIER), Economic Association of Malaysia, Consumer...
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...Goals, Outcome Statements and Budget Estimates of The Federal Government of Pakistan Compiled by Tariq Husain (thusain@rabt-e-nau.com) for Rabt-e-Nau (www.rabt-e-nau.com) Islamabad Resource Number: GOVERN-R-001 on the Website 31 January 2011 Introduction In June 2010, the Finance Division of the Government of Pakistan presented an innovative budget document, called the Green Book, or the Federal Medium Term Budget Estimates for Service Delivery 2010-13 (http://finance.gov.pk/budget/mtbf_2010_13.pdf). The purpose, as stated in its Preface, “is to provide Parliament and other stakeholders with the clearest possible statement of the services which are to be delivered and the investments to be undertaken through the application of the funds appropriated by Parliament and, equally importantly, the results which are expected to be achieved in terms of the achievement of goals of public sector activity and the benefits expected to accrue to different population groups from the activities of the Federal Government. The publication of the Green Book marks a major step forward in enhancing the transparency of the federal budget.” The Preface highlights the innovative features of the Green Book in the following words: (a) The Green Book uses the 3-year framework for budgetary planning which lies at the heart of the MTBF reforms. Under this process ministries make their plans and prepare budgetary estimates for a rolling 3-year budgetary horizon. (b) The centerpiece of the Green...
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...Sequestration is a term used to describe the practice of using mandatory spending cuts in the federal budget. It was first the Budget Control Act of 2011 this was the bill that would have set a limit on what needs to be done and cut to make the economy better, but they fell to get this bill into play because there was a divide in the congress wants. The sequester came about because congress was required to vote on December 23, 2011 about cutting spending, but did not do so. Republicans and Democrats needed to agree to balanced spending reduction for the bill to be passed. If failed, which they did, the enforcement mechanism will began spending cuts starting in 2013 on March 1. It would split 50/50 between domestic and defense spending. The law protects some Social Security and Medicare benefits. Democrats wanted a mix of spending cuts and tax increases. House Democrats suggested trading the $85 billion in 2013 sequester cuts with a combination of tax increases, and the Senate Democrats also introduced the American Family Economic Protection Act which would have replaced the 2013 sequester with $110 billion in spending cuts and tax increases and both spread plans would spread out over the progression of a decade rather than hitting so hard in a year. Republicans insist that only spending cuts need to be made. House Republicans suggested the Spending Reduction Act of 2012 Budget would have replaced the 2013 defense sequester with a variety of spending cuts, including cuts to food...
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...being successful has to do with the having a proper budget. A budget is a plan for the accomplishment of programs related to objectives. The budget is a key document which translate our policies into a fiscal document. Like most things in government the budget process in its early stages started off with a lot of errors and things that needed to be fixed. Throughout the years there have been key policies and laws that have made contributions to the development of the federal budget process. These are the main laws and policies that have made contributions for the betterment of the federal budget process; the Budget and Accounting Act of 1921, the Congressional Budget and Impoundment Control Act of 1974, the Balanced Budget and Emergency Control Act of 1985, the...
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...There are three ways Congress can control the statutory budget in order to prevent tax and mandatory spending legislation from increasing the deficit that constricts the discretionary budget. In 2010, the Statutory Pay-As-You Go (PAYGO) Act was passed which maintains that any changes to taxes or mandatory spending, which increase the multi-year deficit must be offset in an equivalent amount through other changes which in turn decrease the deficit. Any violation of this act results in a sequestration across select mandatory programs in order to restore the balance in the budget. The second way Congress may control the budget is through discretionary funding caps. Through the 2011 Budget Control Act (BCA), Congress imposed limits on the amounts...
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...American Politics Final Exam Questions 1. In the design of the United States government, Congress was given the legislative power. It "makes the laws" for the nation. a. What procedure does the Constitution require for Congress to make law? Article I of the Constitution "all legislative powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and a House of Representatives." The House and Senate are equal partners in the legislative process––legislation cannot be enacted without the consent of both chambers. First, any bill for raising money (such as by taxes or fees) must start out in the House. All bills must pass both houses of Congress in the exact same form. Bills that pass both houses are sent to the President. He can either sign the bill, in which case it becomes law, or he can veto it. In the case of a veto, the bill is sent back to Congress, and if both houses pass it by a two-thirds majority, the bill becomes law over the President's veto. b. Describe the legislative process utilized today, above and beyond the Constitutional requirements. The general process for making a bill into law is described in the Constitution. First, a bill needs to be drafted. You do not need to be a member of congress to draft a bill. For example lobbyists and other congressional staff can draft a bill, but only a member of congress can introduce legislation. Bills then get referred to standing committees. Once referred, the bill...
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...DAO 102_Planning_Programming_Budgeting paper Department of Defense Decision Support Systems1.2. Planning, Programming, Budgeting and Execution (PPBE) Process | | The purpose of the PPBE process is to allocate resources within the Department of Defense. It is important for program managers and their staffs to be aware of the nature and timing of each of the events in the PPBE process, since they may be called upon to provide critical information that could be important to program funding and success. In the PPBE process, the Secretary of Defense establishes policies, strategy, and prioritized goals for the Department, which are subsequently used to guide resource allocation decisions that balance the guidance with fiscal constraints. The PPBE process consists of four distinct but overlapping phases: Planning. The planning phase of PPBE is a collaborative effort by the Office of the Secretary of Defense and the Joint Staff, in coordination with DoD components. It begins with a resource-informed articulation of national defense policies and military strategy known as the Guidance for the Development of the Force (GDF). The GDF is used to lead the overall planning process. This process results in fiscally constrained guidance and priorities - for military forces, modernization, readiness and sustainability, and supports business processes and infrastructure activities - for program development in a document known as the Joint Programming Guidance. The Joint Programming Guidance...
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...Efforts to Reduce the Budget Deficit Melissa Hillard ECO203: Principles of Macroeconomics (BAJ1347A) Instructor: Kathryn Armstrong December 9, 2013 Efforts to Reduce the Budget Deficit Between the years of 1980 and 1993, budget deficits amounts increased and the national debt tripled. The public debt in this country has grown by more than $500 billion each year, in July 2012 nominal GDP was $15.8 billion. The ratio of debt reached a 10 year low in 1981 (32.8%) and went to 73% in 1993. By 2012 it was almost 100%. The actions taken by Congress since 1985 and the current debates between the Whitehouse and Congress, including what measures are necessary to address spending and revenue, will be reviewed. In 1981 President Reagan’s advisors proposed a 30% reduction in personal income taxes and an even bigger cut in corporate profit taxes. The actual result was a 25% cut in personal income taxes. At the time there was a conflict as to why the taxes were cut. There were several groups that had different opinions as to why President Reagan cut the taxes and what his expected results were. “Some supply-side economists argued that the increased incentives to work, save, and invest would actually result in increased tax revenues” (Amacher & Pate, 2012). Though there were some effects on tax revenue, there were not enough to offset the original tax cut. A second group believed that the purpose of the tax cut was to limit the revenue source that the government was...
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...Budget Reform Our country’s budget battle continues to rage. Congress and the president reach a resolution just to have a new fiscal cliff begin another round of arguing. Our government is dysfunctional, constantly proven by operating on the basis of continuing resolutions and temporary provisional measures. At its worst, our federal government shuts down, this is their entire job and they shut down. The influence of these clashes is terrible for the economy. Few people argue that our budget process is not broken, but our nation is far behind, we barely make it back from every budget battle that we have no time to actually evaluate and understand what is driving the dynamics of this process. A main culprit is partisan strategy. The distinct polarization has caused the biggest contention of issues on Capitol Hill. “In 1995 and 1996, Republicans shut down the federal government in their fight for spending cuts. Even after reaction President Bill Clinton helped restore his political position, which had plummeted after the 1994 elections, the Republican Party continued to insist on spending cuts for the remainder of Clinton's term, leaving little opportunity to do much more that to try to reduce their demands” (CNN 2013) An additional cause for budget issues, previously, once there’s been break by using a particular tactic, that particular practice can become normal. A very good example is a filibuster. In history, there was a time when members of the Senate were reluctant...
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...Capital budgeting Making decisions having significant future benefits or costs for various entities and their stakeholders. Capital budgeting is the backbone of financial economics. Related topics in financial economics include: the time value of money, the meaning of net-present value, accounting concepts consistent with present-value calculations, discount rates, and option valuation techniques. In the public sector, the term is often exclusively associated with infrastructure investments -- plant and equipment. It is more properly associated with all policy choices that have significant, long-term consequences: especially decisions about missions, programs, products, processes, or procedures. There are standard solutions to several kinds of capital-budgeting problems: make or buy decisions, investment in working capital (especially inventories) decisions, maintenance-level decisions, project selection, the choice of mutually exclusive investments, and investments in plant with fluctuating rates of production. However, the same basic calculus of benefits and costs is supposed to guide all classes policy choices with long-term consequences. Financial Theory Financial theory teaches that, in the presence of a capital market where funds can be obtained at a price, welfare will be maximized by the implementation of all policy choices that generate positive net-present values. This means, in part, that the timing of benefits and costs is generally of no...
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...local activities. The theory behind grant in aids was that federal governments were supposed to operate programs in the interest of the national government. On the contrary, the in practice, the help system works differently. Many of the federal politicians preoccupy themselves with the competitive scramble of maximizing the subsidies for their states without caring if the program is efficient or how limited the budget is. Grant in aid program needs to be eliminated. Federalism should be revived and the grant programs terminated. There is no clear reason as to why the activities should not be funded at the local and states levels) Program 2: (Military expenses-It is good to note that the United States policy makers support highly expensive missions for the military instead of the essential role of defending the nation. It’s argued that the United States would be better off taking a wait and see approach to distant threats and letting friendly nations bear the most extra cost for their defense. The military budget needs to be cut in a fashionable way to balance the budget and downsize the government. ) Program 3: (Medicaid Medicare and social security-The projected growth of the above...
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...evaluation process and information on the performance of agencies causes the making of such decisions to be difficult. This is due partly by the absence of measurements to evaluate agency dollars and performance when agencies present their budgetary budget proposal with traditional budgetary process. Both performance-enhanced budgeting and performance-information budgeting can greatly improve the budgetary process because agencies will have information to not only evaluate their programs, but will also be beneficial to both governmental agencies and the general public because budgets that will benefit the tax payer will be better funded. Traditional Budgeting vs. Performance-Enhanced Budgeting Traditional budgeting at the federal level has had aspects of both top-down and bottom-up procedures. Rubin (2010, p 87) states that an extreme top-down budgeting can “virtually ignore bureau chiefs…the chief executive may not ask bureau chiefs for their budget request.” However, with the fragmentation of power caused by the 1974 Congressional Budget Reform Act, which “limited some of the president’s budgetary discretion and enhanced Congress’s ability to check executive branch revenue projections and economic assumptions” both the President and Congress have to work together to approve budgets (Rubin, 2010, p. 111). An example of top-down budgeting at the federal level occurs at the begging stage of the budgeting process when “the President submits to Congress a detailed budget request...
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...Year in Review The 111th Congress met for the last time this week, leaving in its wake a year of education highs and lows. Meanwhile, the Obama administration is grappling with how to sell its education reform agenda—outlined over the course of this past year—to an increasingly divided Congress. Here’s ASCD’s take on the nation’s main policy accomplishments (and failures) related to education during the past year, and our quick look at what’s in store when the 112th Congress takes over in January. ESEA Déjà Vu The congressional year ends essentially where it began with regard to the most significant piece of federal education legislation, which is more than three years beyond its expiration date. That isn’t for a complete lack of trying. The past year saw increasing clarity from the Obama administration about its education reform priorities. The March release of A Blueprint for Reform (PDF) outlined the president’s vision for Elementary and Secondary Education Act (ESEA) reauthorization, from ensuring that all students are college and career ready to providing great teachers and leaders in every school. Congress responded by scheduling hearings on ESEA reauthorization, including a Senate hearing that focused on how to support the whole child. Clare Struck, a guidance counselor from Malcolm Price Laboratory School in Cedar Falls, Iowa (the 2010 Whole Child Vision in Action winner), testified at this hearing on ASCD's behalf. Late in the summer, the House and Senate...
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