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Macroeconomics Exam 2 Part 2 ALL WE NEED TO KNOW:  Budget: plan for spending; plan for expenditures (outlays) and tax collections (tax revenues or tax receipts)  If you are spending more than you have, the only things you can do: CUT EXPENSES or MORE INCOME  Balanced Budget: government expenditures (outlays) = tax revenues spending that goes out = tax collection  Budget surplus: Tax revenues exceed government expenditures; tax collection is higher than spending (outlays)  DON’T FORGET WE NEED TO KNOW ALL THE NAMES FOR THE PREVIOS POINTS!!!!!  Budget Deficit: government expenditures exceed tax revenues spending more than taxes in tax revenues  FISCAL YEAR vs. CALENDAR - Federal fiscal: OCTOBER 1 ST (2015) TO SEPTEMBER 30 TH (2016) - In the fiscal year 2015: Outlays/expenditures: $3.7 trillion (spent) ; tax receipts: $3.2 trillion (collected) - The federal deficit of 2015 is $-438 billion  Estimated fiscal year: - FY 2015: $-582 billion ------- (actual $-438 billion) - FY 2016: $-615 billion - FY 2017: $-503 Billion - These estimates make assumptions about health of the economy, federal spending and taxes  National Debt: sum of ALL PAST budget deficits - Current national debt (estimate) $19 trillion - Statutory debt Limit: $18.1 trillion - this debt limit or debt ceiling caps the borrowing or authority of federal government (BIG DEAL) - November 2, 2015: cthrent debt Limit suspended to accommodate debt through March 26 , 2017 for NEW PRESIDENT  FEDERAL BUDGET OUTLAYS 2015: WHERE DOES OUR FEDERAL DOLLARS GO 1. Social security and Medicare 2. National defense 3. Social programs/income security 4. Health-Medicaid 5. Net interest on debt  Federal tac receipts 1. Individual income taxes 2. Social insurance taxes 3. Corporate income taxes 4. Excise, estate, customs, duties, federal reserve deposits FOR THE LAST 2 BULLETS: WE DO NOT NEED TO KNOW THE PERCENTAGES!!!! JUST THE ORDER!!