Week 6 Discussion 1
The Financial Plan
The world continues to experience a paradigm shift in the area of financial matters, capitalism continues to sweep across the globe as people try to embrace the same in a bid to continue remaining relevant in the market. In terms of managing public money, the general public and the legislature arm of the government acting on behalf have discrete right to expect that funds collected by the help of powers laid down by parliament will be channeled in the areas discussed and for the right purpose. Therefore, public servant are charged with the responsibility of using the money collected responsibly for the benefit of the people (Accounts, 2011).
Good common sense and accurate financial management prowess is all that is needed to manage public money to avoid embezzlement of the same. There are underlying conventions which spell out how certain issues are dealt with. These rules are meant for ensuring that the agreed upon policies programs and projects are completed in due course and are working as it had been intended for.
In the Unites States, the national debt is estimated to be at $ 19,888,392,426,061 which keeps on changing as time goes by. On the other hand the federal spending in the country is at $ 3,950,201,974,104 which as well keeps on changing with time. The largest budget items in the country ranges form; Medicare, social security, defense, income security and federal pensions. Therefore we can see that US has prioritized citizens in terms of their well-being and minimized her debt, this is well covered by the figures read in the budget.
On the other hand, the debt held by the Public is all federal debt held by persons, companies, state or local governments, Banks, foreign governments, and other entities outside the United States Government.
Intergovernmental holdings are government account series securities held by the government trust funds, revolving funds, and special funds; and federal financing bank securities. Each year since 1969, Congress has spent so much money than what it accrues in terms of income, the department of treasury has therefore had to solicit for money to meet the needs of congress. In this line, the US national debt stands at $ 19.8 Trillion.
For instance in Kenya as of 2017 through 2018, the budget is at Sh. 2.6 trillion which is to cater for different counties and ministries across the nation. It is one of the highest budget ever in the country. The budget is to be financed through collecting taxes and borrowing from other countries Sh. 1.7 trillion is to be generated from taxes while the remaining Sh. 900 billion to be generated from loans and grants. Of this, the 47 counties are to receive a total of 329.1 billion in 2017/2018 against the Sh288 billion they got in the 2015/2016 financial year which is still too low for the ever growing population (Fund, 2012).
Accounts, G. B. (2011). Accountability for public money: twenty-eighth report of session 2010-11, report, together with formal minutes, oral and written evidence. The Stationery Office.
Fund, I. M. (2012). Kenya: Poverty Reduction Strategy Paper: Progress Report. International Monetary Fund.
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