Macroeconomics Term Paper Example | Topics and Well Written Essays - 1500 words

Macroeconomics - Term Paper Example At present, the national debt is $8.8 trillion and is increasing at nearly $2 billion per day (Hall, 2007). If Congress does not control its overspending through measures such as passing a balanced budget amendment to the Constitution and adhering to it, the country’s economic future is in deep peril. This discussion will provide an overview of the federal budget process and outline the disastrous consequences of continuing to be a debtor nation. The President submits a proposed budget to Congress in early February for the coming fiscal year that runs from October 1 to September 30. The President’s budget request to Congress accomplishes two main objectives. First, it relays the President’s opinion of how much should be taken in via taxation and how much should be spent. Second, it prioritizes the President’s present and future federal funding desires. â€Å"The budget typically sketches out fiscal policy and budget priorities not only for the coming year but for the next five years or more† (Coven & Kogan, 2006). When Congress receives the President’s budget, it usually conducts hearings to discuss many of the requests before developing a budget resolution. This is the budgetary parameters that Congress will work within when making their determinations regarding taxes and spending. The budget resolution, drafted by both Senate and House Budget Committees includes both mandatory and discret ionary spending goals. Following committee approval, the resolution is submitted for a vote and possible amendments by the entire membership of the Senate and House. Afterwards, a joint House-Senate committee is convened to resolve any disparities in the resolution of the two versions passed by each house of congress. The resulting joint report is sent back to both houses for a vote. Congress can choose to employ a procedure known as