Introduction

The federal budget is one of the most important things in the USA, because the whole economy is depending upon this and whatever things the government announces in this budget have an impact overall economy. This report has a proposed USA federal budget and focuses on the major areas of spending in the budget, and discusses the steps from the debt reduction proposal. And towards the end, this report discusses the possible reaction from the major organizations of the USA on this budget.

BUDGET PROPOSAL

While making the federal budget for 2011 I would construct the budget in a way that would be beneficial for the economy and would meet the expectations of all the stakeholders. Of the total budget, I would allocate around 15% for paying pensions of the government employees, 14% in the defence, 14% in the education, 11% in the welfare, 17% in the health sector, and 29% in the remaining sectors of the economy. This would mean that there is justified distribution of wealth in the economy and all the sectors get due share from the budget, and this in turn would ensure a prosperous economy.

The political effects of the proposed budget would be positive because the amount of money allocated for the betterment of the economy. The money allocated for the pensions, education and the welfare of the economy is more than 55% of the total budget, which is a huge amount. This would create goodwill about the government and would help ease out the political tensions. This budget proposal would the country fight the economic depression and help the government in rebuilding the economy by focusing on the betterment of the economy. This budget will have good political support throughout the country because of the focus on the welfare of the society.(www.washingtonpost.com)

The economic effects of this budget would be good because the government would be spending a lot of money on the economic development of the economy. This budget would focus on the betterment of the economy by providing enough support to the people who can an impact on the economy. The amount of money spent on the welfare of the people would help people improve their economic conditions; the overall condition of the economy would improve. This in turn would help the overall economic recovery, because when the economic health of people would improve then they would start spending and this would start the ...