The Federal Budget And How It Gets Made
Due Week 2 and worth 180 points The Federal Budget and how it gets made is a complex and lengthy process that has important implications for Federal and State agencies. Obviously, funding for each agency is going to affect that agency’s budget. Likewise, federal funding for social programs, education, and other programs such as disaster relief affects how states fund those programs in their own budgets. Using the e-Activity from Week 1, “2017 America First – A Blueprint to Make America Great Again,” compare the federal budget with the budget of one of the departments listed below and note how they are interconnected. “Department of Energy,” “Department of Commerce,” “Department of Defense,” “Department of Education,” “Department of Homeland Security,” “Social Security Administration.” In a two- to three-page paper (not including cover and reference page), address the following: Summarize the mission and budget of the department you selected. Does the proposed budget of the department you chose include policy actions to reduce the deficit in the near future? Does the proposed budget put the government on a path to reduce the federal debt within a decade to a sustainable percentage of GDP? Does the proposed budget align revenues and spending closely over the long term? Does the proposed budget restrain major entitlement programs or introduce changes in spending and tax policies that will have cumulative beneficial fiscal effects over time? Your assignment must follow these requirements: Include a short introduction and use the questions as section headers. Please include at least three references, not including the president’s budget and the budget of the department of your choice (peer-reviewed not required, as most of your sources will be within the last one to three years).
Paper For Above instruction
Introduction
The formulation of the federal budget is a fundamental process that influences the allocation of resources across various government agencies and programs. Understanding how the budgets of specific departments interconnect with the overarching federal budget provides insight into national fiscal policy and economic priorities. This paper examines the Department of Defense (DoD) as a case study, exploring its mission, budget, and fiscal strategies within the broader context of the 2017 "America First" blueprint and contemporary budgetary considerations.
Mission and Budget of the Department of Defense
The Department of Defense (DoD) is responsible for ensuring national security and military readiness,
safeguarding U.S. interests domestically and abroad. Its mission encompasses defense of the nation, deterrence of adversaries, and support for military personnel. The DoD’s budget, in fiscal year 2017, was approximately $585 billion, representing the largest component of federal discretionary spending (U.S. Department of Defense, 2017). This budget funds personnel salaries, military operations, procurement of weapons systems, research and development, and infrastructure maintenance. The substantial budget reflects the department’s strategic priority to maintain a capable and modern military force, aligned with the national security policies outlined in the "America First" blueprint, which emphasizes strengthening the military.
Policy Actions to Reduce the Deficit
The proposed DoD budget in 2017 included policy measures aimed at enhancing efficiency and reducing costs, such as streamlining procurement processes and eliminating redundant programs. However, defense spending generally accounts for a significant portion of federal expenditures and poses challenges to deficit reduction efforts. The budget’s focus on increasing military capabilities and modernization often leads to increased spending, making it difficult to implement substantial austerity measures specific to the defense sector without compromising national security. Thus, while there are efforts to improve fiscal discipline, the overall budget does not primarily focus on deficit reduction.
Path to Reduce Federal Debt
The DoD’s budget does not directly address reducing the federal debt within a decade. Its emphasis lies in maintaining military readiness, technology advancements, and strategic superiority. While some efforts to improve procurement efficiency may contribute indirectly to fiscal sustainability, the overall defense budget has been projected to grow at rates surpassing GDP growth in some years, potentially exacerbating debt levels if not offset by increases in revenue or reductions elsewhere (Section 215 of the Budget Control Act, 2018). Therefore, unless significant policy shifts occur, the DoD budget alone is unlikely to steer the nation toward a sustainable debt-to-GDP ratio.
Alignment of Revenues and Spending
Long-term fiscal health requires aligning revenues and spending effectively. The DoD’s budget, while a major component of federal expenditure, constitutes a fixed percentage of total government outlays determined by security needs and strategic priorities. Revenues, primarily generated through taxes, have remained relatively stable but insufficient to cover rising defense costs without increasing deficits. The
disconnect between defense spending and revenue growth underscores the ongoing challenge of balancing national security with fiscal responsibility.
Reforms in Entitlement Spending and Fiscal Policy
The DoD budget does not directly influence entitlement programs such as Social Security or Medicare; however, policies that prioritize military spending often compete with efforts to restrain entitlement growth. Some budget proposals in recent years suggested marginal reforms in defense budgets while proposing changes in entitlement policies, aiming for a fiscal balance over time. Nevertheless, the cumulative effect of defense and entitlement spending remains a significant factor in long-term fiscal projections, with many experts advocating for comprehensive reforms to achieve fiscal sustainability (CBO, 2019).
Conclusion
In conclusion, the Department of Defense plays a pivotal role in the federal budget, reflecting national security priorities through a substantial budget allocation. While efforts exist to improve efficiency, defense spending remains a considerable obstacle to short-term deficit reduction and long-term fiscal sustainability. Achieving a balanced and sustainable federal fiscal stance will likely require integrated policy measures that address both defense and entitlement expenditures, alongside revenue enhancements.
References
Congressional Budget Office. (2019). The Budget and Economic Outlook: 2019 to 2029. https://www.cbo.gov/publication/55068
U.S. Department of Defense. (2017). Military and civil budget request for fiscal year 2018. https://comptroller.defense.gov/Portals/45/Documents/defbudget/fy2018/fy2018_Budget_Request_Overview_Book.pdf
Section 215 of the Budget Control Act. (2018). Pub. L. No. 113-67. https://www.congress.gov/bill/113th-congress/house-bill/2617
Government Accountability Office. (2020). Defense Spending and Fiscal Management. GAO-20-427T.https://www.gao.gov/products/gao-20-427t
National Defense Authorization Act. (2021). Pub. L. No. 116-92. https://www.congress.gov/bill/116th-congress/house-bill/6395