The budget of the United States government for fiscal year 2007 was produced through a
budget process A budget process refers to the process by which governments create and approve a budget, which is as follows:
* The Financial Service Department prepares worksheets to assist the department head in preparation of department budget estimates
* The A ...
involving both the
legislative
A legislature is an assembly with the authority to make laws for a political entity such as a country or city. They are often contrasted with the executive and judicial powers of government.
Laws enacted by legislatures are usually known as p ...
and
executive branch
The Executive, also referred as the Executive branch or Executive power, is the term commonly used to describe that part of government which enforces the law, and has overall responsibility for the governance of a State (polity), state.
In poli ...
es of the
federal government
A federation (also known as a federal state) is a political entity characterized by a union of partially self-governing provinces, states, or other regions under a central federal government (federalism). In a federation, the self-governin ...
. While the
Congress
A congress is a formal meeting of the representatives of different countries, constituent states, organizations, trade unions, political parties, or other groups. The term originated in Late Middle English to denote an encounter (meeting of a ...
has the constitutional "
power of the purse
The power of the purse is the ability of one group to manipulate and control the actions of another group by withholding funding, or putting stipulations on the use of funds. The power of the purse can be used positively (e.g. awarding extra fun ...
," the
President
President most commonly refers to:
*President (corporate title)
*President (education), a leader of a college or university
*President (government title)
President may also refer to:
Automobiles
* Nissan President, a 1966–2010 Japanese ful ...
and his appointees play a major role in budget deliberations. Since 1976, the federal
fiscal year
A fiscal year (or financial year, or sometimes budget year) is used in government accounting, which varies between countries, and for budget purposes. It is also used for financial reporting by businesses and other organizations. Laws in many ...
has started on October 1 of each year.
The government was initially funded through a series of three temporary
continuing resolutions. Final funding for the
Department of Defense Department of Defence or Department of Defense may refer to:
Current departments of defence
* Department of Defence (Australia)
* Department of National Defence (Canada)
* Department of Defence (Ireland)
* Department of National Defense (Philipp ...
was enacted on September 29, 2006 as part of the
Department of Defense Appropriations Act, 2007, while the
Department of Homeland Security
The United States Department of Homeland Security (DHS) is the U.S. federal executive department responsible for public security, roughly comparable to the interior or home ministries of other countries. Its stated missions involve anti-terr ...
was funded through the
Department of Homeland Security Appropriations Act, 2007
The Department of Homeland Security Appropriations Act, 2007 () is a U.S. Act of Congress signed into law by President George W. Bush on October 4, 2006. The appropriation bill appropriates about $33.8 billion in homeland security
Homelan ...
, enacted on October 4, 2006. The remaining departments and agencies were funded as part of a full-year continuing resolution, the
Revised Continuing Appropriations Resolution, 2007, on February 15, 2007.
Total receipts
Receipts by source: ''(in billions of dollars)''
The IRS estimated that there were about $345 billion in
uncollected taxes, which is sometimes referred to as the "tax gap.".
Total spending
The President's actual budget for 2007 totals $2.8 trillion. Percentages in parentheses indicate percentage change compared to 2006. This budget request is broken down by the following expenditures:
*$586.1 billion (+7.0%) -
Social Security
Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specificall ...
*$548.8 billion (+9.0%) -
Defense
Defense or defence may refer to:
Tactical, martial, and political acts or groups
* Defense (military), forces primarily intended for warfare
* Civil defense, the organizing of civilians to deal with emergencies or enemy attacks
* Defense industr ...
*$394.5 billion (+12.4%) -
Medicare
*$294.0 billion (+2.0%) - Unemployment and welfare
*$276.4 billion (+2.9%) -
Medicaid
Medicaid in the United States is a federal and state program that helps with healthcare costs for some people with limited income and resources. Medicaid also offers benefits not normally covered by Medicare, including nursing home care and pers ...
and other health related
*$243.7 billion (+13.4%) - Interest on debt
*$89.9 billion (+1.3%) - Education and training
*$76.9 billion (+8.1%) -
Transportation
Transport (in British English), or transportation (in American English), is the intentional movement of humans, animals, and goods from one location to another. Modes of transport include air, land (rail and road), water, cable, pipeline, ...
*$72.6 billion (+5.8%) -
Veterans' benefits
The US Department of Veterans Affairs provides a wide variety of benefits, e.g., educational assistance (GI Bill), healthcare, assisted living, home loans, insurance, and burial and memorial services, for retired or separated United States armed ...
*$43.5 billion (+9.2%) -
Administration of justice
The administration of justice is the process by which the legal system of a government is executed. The presumed goal of such an administration is to provide justice for all those accessing the legal system. The phrase is also commonly used to ...
*$33.1 billion (+5.7%) - Natural resources and environment
*$32.5 billion (+15.4%) -
Foreign affairs
''Foreign Affairs'' is an American magazine of international relations and U.S. foreign policy published by the Council on Foreign Relations, a nonprofit, nonpartisan, membership organization and think tank specializing in U.S. foreign policy and ...
*$27.0 billion (+3.7%) -
Agriculture
Agriculture or farming is the practice of cultivating plants and livestock. Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that enabled people to ...
*$26.8 billion (+28.7%) - Community and regional development
*$25.0 billion (+4.0%) - Science and technology
*$20.5 billion (+0.8%) -
Energy
In physics, energy (from Ancient Greek: ἐνέργεια, ''enérgeia'', “activity”) is the quantitative property that is transferred to a body or to a physical system, recognizable in the performance of work and in the form of heat a ...
*$20.1 billion (+11.4%) - General government
Much of the costs of the
Iraq war
{{Infobox military conflict
, conflict = Iraq War {{Nobold, {{lang, ar, حرب العراق (Arabic) {{Nobold, {{lang, ku, شەڕی عێراق (Kurdish languages, Kurdish)
, partof = the Iraq conflict (2003–present), I ...
and the
Afghanistan war until FY2008 have been funded through supplemental appropriations or emergency supplemental appropriations, which are treated differently from regular appropriations bills. Senior congressional leaders have contended that those war costs, as much as possible, should go through the regular budget process, which provides for greater transparency. Determining the costs of the wars in Iraq and Afghanistan is complex. CBO has estimated that "war-related defense activities" in 2007 were "roughly $115 billion."
2007 total military budget
The total requested
military budget of the United States
The military budget is the largest portion of the discretionary United States federal budget allocated to the Department of Defense, or more broadly, the portion of the budget that goes to any military-related expenditures. The military budget ...
for 2007 was $699 billion.
U.S. Military Budget
Department of Defense Budget
- OMB FY 2008 President's Budget Charts and Tables - DoD Base Spending: The U.S. Department of Defense (DoD) has the single largest budget of any government agency in the discretionary budget. This department is responsible for the four branches - the Army, Air Force, Navy and Marine Corps. This includes the cost of base administration, pay for military members, and the costs of repairing and procuring equipment.
*FY 2006, Defense Department base budget expenditures were $411 billion, nearly half of net discretionary spending
In American public finance, discretionary spending is government spending implemented through an appropriations bill. This spending is an optional part of fiscal policy, in contrast to social programs for which funding is mandatory and determine ...
.
*FY 2007, it increased to $430 billion, still about half.
*FY 2008, it is projected to grow to $481 billion, or 52%.
U.S. Military Budget - War on Terror Base Spending : The War on Terror (WoT) incurs additional costs by other departments. When added to the DoD base spending, the amount comes to:
*$474 billion in FY 2006, which is 56% of net discretionary spending,
*$505 billion in FY 2007,
*$554 billion in FY 2008, nearly 60% of discretionary spending.
*FY 2006 Supplemental Funding : The Defense Department base budget also does not include “one time only” costs attributable to the War on Terror, which are submitted as Supplemental Funding.
**In FY 2006, an additional $153 billion in Supplemental Funding was added to the base budget - the War on Terror received $120 billion, while $33 billion went primarily for Hurricane Katrina
Hurricane Katrina was a destructive Category 5 Atlantic hurricane that caused over 1,800 fatalities and $125 billion in damage in late August 2005, especially in the city of New Orleans and the surrounding areas. It was at the time the cost ...
. As a result, 60% of last year's discretionary spending went to DoD/WoT.
*FY 2007 Supplemental Funding : For FY 2007, $70 billion has already been approved, while the President’s FY 2008 Budget requests an additional $102 billion. If approved by Congress, total FY 2007 spending for DoD/WoT would be $673 billion, or 64% of the net discretionary budget.
*FY 2008 Budget Proposal : For FY 2008, the President has requested the following:
**The Defense Department Base Budget - $481 billion.
**WoT(non-DoD) Base Budget - $73 billion.
**Supplemental Funding for WoT - $145 billion.
**Total requested Dod/WoT spending is $699 billion, or 65% of total net Discretionary spending.
References
External links
Status of Appropriations Legislation for Fiscal Year 2007
{{US federal budget
2007
File:2007 Events Collage.png, From top left, clockwise: Steve Jobs unveils Apple's first iPhone; TAM Airlines Flight 3054 overruns a runway and crashes into a gas station, killing almost 200 people; Former Pakistani Prime Minister of Pakistan, Pr ...
Federal budget
United States federal budget
The United States budget comprises the spending and revenue
In accounting, revenue is the total amount of income generated by the sale of goods and services related to the primary operations of the business.
Commercial revenue may also b ...