Overview
PA 506 PUBLIC BUDGETING & FINANCIAL MANAGEMENT
Total 100 points
Attention: Each question needs be responded in (2000-2500 words) and Write a conclusive statement at the end of each response.
All through your writing, attempt should be made to provide clue to solve the ongoing budgetary crisis that our nation is facing.
Essay Questions: (Respond all four questions)
- Explain the various perspectives one can have on public budgeting and how the understanding of public budgeting can be affected by each perspectives. Critically discuss the post-1940 reforms in Public finance and management. Explain in detail, the executive focus and the legislative focus of federal budget of the United States. Explain how the political and ideological debates among the Conservatives and Liberals have shaped the federal budget appropriations in recent times. In this context, converse the different spending priorities by President Biden, and compare them with former President Trump’s prescription.
- The large entitlement programs such as Social Security, Medicaid, and Medicare etc are highly divisive issues in American politics. It is very difficult to predict in advance just how many individuals will meet the set criteria in a given year; hence it is rather “difficult to predict what the total costs to the government will be at the time the appropriation bills for the coming fiscal year are being drafted”. So naturally, it becomes “even harder for government to smooth out the business cycle or pursue other macroeconomic objectives through an active fiscal policy. Within these complicated parameters, discuss ; i) the politics of entitlement in the federal budget making process; ii) the politics of supplementary budget (additional funding for Stimulus packages) affecting federal budget; iii) how the tax cut on high personal income, capital gains, dividends hinder in balancing the federal budget debt and deficit, and iv) how all these Infrastructure investment and Build back America package from the Federal Government will affect the national budget in short run and long run.
- The US federal budget can’t be effective without effective monetary and fiscal policy, and competent auditing process. Discus the role of Federal Reserve Bank and the Treasury Dept, regarding the funding of bankrupt financial institutions (like Fannie Mae, Freddie Mac, AIG and others) . So far almost $5/6 trillion have been invested for Corona Pandemic related relief package for the general welfare of the average people and the business entities. Make your argument: how sound these stimulus spending are from financial, political and moral standpoint. As you know all of the tools available to the Federal Government must work together in facilitating effectiveness of public finance policies in the United States. Converse on the role of government in interfering the economy and also argue how in contemporary interdependent global economy, economic tools of USA should match the economic empowerment of emerging Asian countries.
- a) Discuss the political and ideological debates among the Republicans and the Democrats regarding the federal budgetary issues (e.g. tax breaks, budget priorities, surplus, social security, welfare programs, and others) with critical and enlightened explanations. b) Discuss the issues related to debt vs. deficit and on-budget vs. off-budget issues. Interpret the deficit and debt numbers in relation to the government debt held by the Federal Reserve Bank, State and local government debt, and their effects on inflation – which is very high now. Also converse on the burden of debt and it’s moral and political considerations.