Federal Budget Flashcards 2012

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Questions and Answers

What was the federal budget in the fiscal year 2012?

$3.8 trillion

What were the three largest expenditures in the federal budget in 2012?

Medicare and Medicaid, Social Security, and Defense.

Approximately what percent of the budget goes to paying interest on money the US government owes?

What parts of the federal budget come as the biggest surprise?

How little money goes to research and the national park service. Signup and view all the answers

What budget categories make up the 'Big Five'?

Medicare, Medicaid, Social Security, Defense, Safety Net Programs, and Interest on the national debt. Signup and view all the answers

Together, the Big Five make up what percentage of the $3.8 trillion 2012 federal budget?

82% Signup and view all the answers

Which Preamble objective is addressed by each of the Big Five budget categories?

A budget category may fit more than one Preamble goal. Signup and view all the answers

How does Medicare and Medicaid promote the general welfare?

Support for good health coverage helps people to live a good life. Signup and view all the answers

How does Social Security promote the general welfare?

Social Security helps maintain the income security of the elderly and disabled citizens. Signup and view all the answers

How does Defense provide for the common defense?

We need a military to protect the country from enemies. Signup and view all the answers

How do safety net programs promote the general welfare?

They help people recover from problems that keep them from life, liberty, and the pursuit of happiness. Signup and view all the answers

How does interest on debt relate to the five purposes included in the budget?

In order to meet these goals, the government has to borrow money in addition to collecting taxes. Signup and view all the answers

What is the most important spending change to be made in this cluster?

You move money out of Social Security because it has its own taxes to fund it. Signup and view all the answers

What are the key components of veterans' benefits and services?

Mostly disability benefits and medical services. Signup and view all the answers

What does transportation funding cover?

Construction and maintenance of roads, bridges, airports, and ports. Signup and view all the answers

What areas does education funding support?

College aid and loans, special education programs, free lunch for students in need, anti-discrimination efforts, research, special programs. Signup and view all the answers

What does justice funding cover?

Federal prisons, the federal court system, and enforcement programs. Signup and view all the answers

What is included in homeland security funding?

Border patrol and immigration enforcement, Coast Guard, Secret Service, TSA, and FEMA. Signup and view all the answers

Study Notes

Federal Budget Overview 2012

The federal budget for the fiscal year 2012 was $3.8 trillion.
Major expenditures included Medicare and Medicaid, Social Security, and Defense, comprising over 60% of the budget, approximately $2.4 trillion.

Budget Allocations and Discretionary Spending

Interest payments on debt accounted for about 6% of the federal budget, which does not meet the objectives outlined in the Preamble.
Surprising aspects of the budget include minimal funding for research initiatives and the National Park Service.

Key Budget Categories

The "Big Five" budget categories include:
- Medicare, Medicaid, and Children’s Health Insurance Program (CHIP)
- Social Security
- Defense
- Safety Net Programs
- Interest on the national debt
Together, these categories constitute 82% of the 2012 federal budget.

Alignment with Preamble Objectives

Medicare and Medicaid promote the general welfare by supporting health coverage.
Social Security maintains income security for elderly and disabled individuals, reinforcing general welfare.
Defense spending is aimed at providing for common defense against threats.
Safety net programs support individuals in achieving life, liberty, and the pursuit of happiness by aiding recovery from adversities.
Interest payments address all Preamble objectives as they stem from government borrowing for tax revenue shortcomings.

Suggested Budgetary Adjustments

Proposals include reallocating funds from Social Security since it is funded through specific taxes instead of the general fund.
A suggested reduction in defense spending to reallocate these funds for debt repayment and reduce interest obligations.

Additional Federal Budget Insights

Veterans’ benefits primarily consist of disability support and medical services.
Transportation budget focuses on infrastructure such as roads, bridges, airports, and ports.
Education funding covers college aid, special education programs, free lunches for low-income students, and anti-discrimination efforts.
Justice funding includes federal prisons, court systems, and law enforcement initiatives.
Homeland Security encompasses border patrol, Coast Guard, Secret Service, TSA, and FEMA for disaster management.

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Description

Test your knowledge on the federal budget of the fiscal year 2012 with these flashcards. Learn about major expenditures and key financial figures that shaped the budget for that year. Ideal for students and anyone interested in government finance.