SCHOLARLY ACTIVITY

Scholarly Activity

Scholarly Activity: Review of Revenue Estimates in Federal, State and Local Budgets

A basic description of each budget.

Budget is the advance estimate of income or receipts of money from one institution and egress of money to be had for a time, usually one year. When talking about the federal or state budget, the calculation of cash inflows and outflows is related to what happens in financial terms, during a calendar year or fiscal year of work in a country or state. Entries will the funds credited to the municipality and the outputs correspond to the amounts of money the township allocated for their operation and the actions we take, for example, the works that aims to promote. In preparing the municipal budget, the council establishes the amounts and destination of the funds available. That is, how much money are and what activities will use in accordance with the Work Plan Municipal and Local Development Plan. The destination and amounts of funds of the municipality in advance should be set depending on the actual availability of the objectives and goals for a year without losing sight of the long term, all of which must respond to the priorities that have been raised the whole municipality (Hiber, 2010). At the same time the budget is a tool that fits the local government activities, in order to organize annual local needs according to priorities, to help establish mechanisms to provide solutions and resources available to address them in an orderly manner.

Federal Budget Revenue

Type

2012

Total Direct Revenue

$2.6 trillion



Income Taxes

$1.5 trillion



Social Insurance Taxes

$0.9 trillion



Ad-valorem Taxes

$0.2 trillion



Fees and Charges

$0.0 trillion



Business and Other Revenue

$0.1 trillion

 

Source: http://www.usgovernmentrevenue.com

Percentage Share of the Federal Revenue

Source: http://www.usgovernmentrevenue.com

California State Budget Revenue

Type

2012

Total Direct Revenue

$219.8 billion



Income Taxes

$67.3 billion



Social Insurance Taxes

$20.2 billion



Ad-valorem Taxes

$57.2 billion



Fees and Charges

$14.8 billion



Business and Other Revenue

$60.1 billion

 

Source: http://www.usgovernmentrevenue.com

Percentage Share of the State Revenue

Source: http://www.usgovernmentrevenue.com

California Local Budget Revenue

Type

2012

Total Direct Revenue

$165.6 billion



Income Taxes

$0.0 billion



Social Insurance Taxes

$1.7 billion



Ad-valorem Taxes

$71.6 billion



Fees and Charges

$41.2 billion



Business and Other Revenue

$51.1 billion

 

Source: http://www.usgovernmentrevenue.com

Percentage Share of the Local Revenue

Source: http://www.usgovernmentrevenue.com

Identify the differences and similarities of each budget.

The above three federal, state and local budget's revenue expectations are very similar to each other, as there are same sort of heads under the total revenue. The main difference is the proportion of the revenue. In the federal budget revenue, there are no fees and charges while in the local government budget, the income taxes are not included. However, the state budget includes both the income taxes and the fees and charges of the services. As the income taxes are the major source of revenue in an economy of any country, the local government budget revenue is very low due to the absence of income taxes.

What accounts for the major sources of revenue for each?

The major sources of revenue in federal budget are the income taxes which accounts to about 56 % of the total ...