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The tabling of the president budget is the beginning in the Federal Government spending in a financial year that begins every October. The constitution gives power to congress to raise and spend money for the Federal government of the day. So what in the president's budget is a recommendation that the presidents makes to the state. Congress is the only one that holds the power for actual spending and appropriation. These will involve negotiations and horse trading between the White House and Congress.

The tradition of the president's budget process begun in 1921 in order to encourage increased coordination in the federal government and containing spending. Before 1921 the government agencies requested money from the congress directly. The introduction of consolidated fund was introduced to help the president to have a say or influence on the budget making process.


The white house prepares the yearly budget after they have been in consultation and agreement with all the entities of the federal government. The federal government looks at all its entities requirements from all the departments and independent agencies and then with its goals and priorities in mind, it prepares a request for funding. These request for funding should be able to support all the government functions effectively and also be able to implement all of the president's policies, may they be domestic or international policies.

Office of Management and Budget which is in the executive arm of the government is the one that is in charge of the compilation and analyzing of the budget information on behalf of statehouse. It helps to produce the budget in a document form. The document is in Volumes of large soft cover books. It serves to advocate the president's the policies the policies the president for spending. George W. Bush is the only president known to have presented his proposals in electronic format in 2009.

After the submission of the proposals, congress drafts dozen of appropriation bills that are aimed at funding the various aspects of the economy like agriculture, tourism, defense, natural resources, and energy among other sectors. The bills also take into consideration funding federal government activities and make allocations for revenue to run programs at each state and local levels. The appropriation bills often elicit fierce debates between the democrats and the republicans. The measures for spending are usually promoted by the congress members and are tied to the demographic, the regional and the economic factors of the congress person's state.

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President Obama offered in his Presidents budget to reduce poverty through job creation, increase government funding into schools and in the long run reduce the national deficit. The Taxes that were introduced during President Bush era for the wealthy Americans will expire with the presidents plan so there is anticipated increase in the government revenue.

President Obama will once again make an increase in Military spending as has been the case since the beginning of the war in Afghanistan in 2001 and later in Iraq. However the military spending will continue to increase as it has been happening over the years with the increase of troops in Afghanistan.

The president budget wanted to boost taxes for the wealthy, prepare the ground for the mandatory health care and reduce the government deficit it will also help to curtail the medicare.

In 2010 the government was to spend 3.55 trillion dollars, the president had proposed measures that would push spending to about 3.94 trillion dollars this will also make the national deficit to 1.75 trillion dollars. The massive deficit is due to the high. The increase in deficit means every tax payer has a deficit of about 12,000 dollars.

The proposed budget by president Obama increases money meant for bailout to 750 billion dollars but the government believes fi the economy improves as it is doing the government might end up recovering about 500 billion dollars back and if this is the case the American tax payers will only spend about 250 million dollars. The president argued that increased money for the bailout was necessary incase the economic growth does not proceed as expected.

The congress argues that President Obama is being soft to tackle hard decisions rather than making increases in tax. Members of the congress argue that the president is burdening the already burdened tax payer and the budget is introducing massive and huge government spending and makes very little to control the spending by the federal government.

The congress was concerned that the president the president is not keeping the deficit in control and is doing little to control the deficit. Republicans were concerned that due to presidents Obamas campaign pledges to giver tax cuts to the middle class, the health care and combating of the economic crisis. The national deficit will become a permanent drag in the national economy.

Minority House Leader John Boehner of Ohio argued that, though everyone agreed that affordable healthcare is important, increasing of taxes when there is an economic recession especially on small businesses does not make sense. 634 billion dollars down payment that will be used for the expansion of healthcare will come from 318 billion increases for over 10 years in increasing of taxes to the wealthy citizens and corporations.

So that president Obama can meet his pledge of tax cuts to the middle class homes, the president proposed to make it permanent a 400 dollar yearly tax for workers as part of the stimulus package that was passed by the congress. The budget also extends the middle class taxes that were implemented by President Bush in 2001 and 2003. The cuts were meant to end in 2010.

The cost of the Stimulus bill and the bailout support has pushed the government deficit to 1.75Trillion dollar s which is almost four times the previous year record of 455 billion dollars. The deficit is 12% of the economy. In 2013,President Obama has promised he will have reduced the deficit significantly by almost half. To meet the budget goals the Obama administration will depend on projections of optimism that the economy will grow.

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