https://www.forbes.com/sites/markcancian/2018/11/05/listen-up-white-house-your-budget-strategy-will-fail .
The process of budgeting is a very crucial requirement in the government of America. In 2018, President Donald Trump laid out an administration budget for the US, which according to Mark Cancain’s Forbes article, ‘The Trump Administration's New Budget Strategy Will Fail,’ is prone to failure. According to Cancain (2018) , John Bolton (the National Security Adviser) was able to diagnose the problem which would lead to the failure of the budget. In this regard, the article has established the areas of budget misuse.
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The problem of budget mishandling begins with the domestic and defense spending allocation, also referred to as discretionary, which takes up to 30% of the federal budget (Cancain, 2018). This is quite a high approximation which can lead to a deficit in the total allocation. A much better decision would be to assign about 25% of the budget, which would in return translate to a reduction of 7% deficit in the federal budget, which can help to achieve a well-balanced budget in the long run.
There are several mandatory allocations in the federal budget that contribute to budget misappropriation. For example, the pension plans, social security allocations, Medicare, and medical cover funds are highly apportioned in the federal government budget. They consume about 62% of the total budget, and is bound to increase with the high rise in the GDP (Cancain, 2018). To reduce such a budget, it is advisable to encourage personal saving from individual income, hence, necessary funds can be allocated to national development. The government should take time to review such budgets in order to place the appropriate amount of fund to the defense department without any misallocation for the funds.
Consequently, there is a very extravagant allocation of funds to the US defense forces. A total of $686.1 billion was allocated to the Department of Defense to cater for the base budget and war funding. This is a key opening to misuse of the administration budget resulting to wasteful spending at defense department such as spending $14,000 to procure 3-D toilet lids and cups each at $ 1,280 (Grassley, 2018). Such an allocation can be viewed as a misappropriation which will cost the citizens high taxes, as well as cost the American economic growth.
The continued problem of budget misuse has greatly continued to raise the deficit level. As more federal budget deficit is incurred in America, the public debts continue to rise day by day (Cancain, 2018). This is a bad indication to the economy since lots of funds will be used to cater for the rising debt levels, thus, reducing the amount of money to be allocated to economic growth. Also, economists and investors will lose interest in the development of the US, and thereby withdraw their investments. The government should, therefore, look for means to reduce the public debt levels so as to boost economic growth.
The problem of the deficit in the budget due to the consequent mishandling of the budget also requires addressing. It can be eliminated by making bargains for various services, providing accurate data for allocation of a fund or cutting on discretionary spending. The solutions lie within the government which controls the dissemination of finances to the respective departments. This could lead to the long-term fiscal health of the government budgetary status.
In conclusion, this paper has established the areas of budget mishandling in America, deeply identifying their effects and solutions that would be appropriate to deal with such issues. The budgeting function of the public administration is quite a very important role and the government should put in place better and efficient plans for accurate allocation.
References
Cancian, M. (2018). The Trump administration's new budget strategy will fail . Retrieved from https://www.forbes.com/sites/markcancian/2018/11/05/listen-up-white-house-your- budget-strategy-will-fail
Grassley, C. (2018). These toilet lids aren’t gold plated, but they cost $14,000. Retrieved from https://www.nytimes.com/2018/12/19/opinion/pentagon-budget-millitary-spending- waste.html
