Public Budget and Financing

Introduction 

The federal budget provides estimates of government revenue and spending for each fiscal year. The federal budget affects the agency and departmental budgets affiliated to the government. In the federal budget, the priority is mainly on defense, health and retirement programs. The budget is authenticated by the congress. Failure to pass the budget then leads to several appropriation bills that are passed to act as a stop gap measure. The budget by the federal government supports various government agencies thus enabling the accomplishment of critical tasks that are to be undertaken. The federal budget is thus very important because it enables the allocation of money to various departments that are critical to the well-being of American citizens. The chosen budget for analysis in this case is the budget of the Department of Commerce. 

Mission and Budget of the Department of Commerce 

The mission of the Department of Commerce is concerned with creating conditions that enhance the economic growth of the country and helps in the establishment of more opportunities. The aim of the department is to promote fair and reciprocal trade, promote innovation through setting standards as well as establishing research and development programs. The department also aims at providing data that helps in supporting commerce as well as constitutional democracy. The Department of Commerce budget for 2020 is projected to be $12.2 billion (U.S Department of Commerce, 2019). The budget is higher than the 2019 budget by $ 766 million (U.S Department of Commerce, 2019). It is a 7 percent increase from the previous budget. The budget includes money that will be used to conduct census in 2020. Census has been allocated a total of $ 6.1 billion. It is the highest government priority in 2020. The budget allocates $460 million that will be used for International Trade Administration (U.S Department of Commerce, 2019). The money will be used in combating unfair trade practices. A sum of $4.5 billion has been allocated to help in sustaining satellites and vessels. It will help in the promotion of national safety and security. A total of $688 million has been set aside to provide research support as well as development of critical technologies (U.S Department of Commerce, 2019). Other areas that have been included in the budget include money for advancing leadership, helping American business to prosper, and eliminating duplicative programs. 

Policy Actions for Reducing Deficit 

The budget of the Department of Commerce incorporates policy actions that are aimed at reducing the budget deficit under the economic development administration. The main function of the division is to identify inefficiencies and eliminate them so that the department can make savings on its budgetary allocations. The division helps in prioritizing programs that have a good return to the government. One of the funding decreases will be achieved through the winding down of the Economic Development Administration. There are policies that have been implemented to help in reducing the amount that is used in salaries and expenses. 

Reducing the Federal Debt 

The current budget in the Department of Commerce has policies and actions that are aimed at reducing the federal debt in the next ten years. The government seeks to spur economic growth by allocating money that will be used to spur business competitiveness (Office of Management and Budget, 2018). There is money that has been allocated for purchase of government securities as well as other financial securities. The investment will help in improving the level of economic growth thus allowing the government to earn more money that can be used to fund the budget. The department is instituting spending cuts in some areas. For example, the winding up of economic development administration will help in freeing up funds that can be used in other areas of the budget. The cut is salary and expenses spending will also help in reducing the budget deficit. 

Alignment of Revenues and Spending over the Long-Term 

The proposed budget is aimed at closing the difference in the amount of money that is earned and the amount of money that is spent. The department has identified areas of the budget that are a high priority such as census, reducing unfair practices, and increasing security and safety. Other areas that are not a priority are being eliminated from the budget. There are some departments that are being wound down to help in freeing funds for the future. 

Restrain of Major Entitlement Programs and Tax Policies 

There are various tax policies that are being instituted by the department to help in balancing the revenues and spending. The tax policies affect market practices, dispute resolutions as well as online disclosures. The department has implemented policies that aim at downsizing the size of departments and eliminating harmful programs (Edwards, 2017). The federal spending cuts are aimed at spurring the economic growth of the country. 

Conclusion 

The federal budget and the department’s budget are directly correlated. Increased estimates for the departments leads to an increase in the overall federal budget. The departments thus have to ensure that they prudently budget for their activities to limit overall budget deficits. The Department of Commerce has placed various measures to ensure that it cuts down spending. It has downsized some divisions in the department. It has also prioritized the most critical department programs and left out harmful programs that increase government spending. 

References 

Edwards, C. (2017, Jun. 23). A Plan to Cut Federal Government Spending. Retrieved from https://www.downsizinggovernment.org/plan-to-cut-federal-spending 

Office of Management and Budget (2018). America First: A Budget Blueprint to Make America Great Again. Executive Office of the President of the United States. 

U.S Department of Commerce (2019). Budget in Brief Financial Year 2020. Retrieved from https://www.commerce.gov/sites/default/files/2019-03/FY_2020_DOC_BiB-032019.pdf