Why does the government plan a budget? The government creates a budget plan because like any good business if you do not control your money you will eventually not be in business any longer. Money is the bloodline to any business. If the numbers are not accounted for properly, over projected, or the target numbers not hit then corporations have to begin to cut jobs and implement other creative ways so that they can meet their projections.
A better question to ask about the government’s budgeting plan is why they do not follow it? Sure they have projections, but when was the last time that those were followed. We are spending 10 billion dollars a month in Iraq right now. 10-billion…with a “B”. And on top of that we are running at a project 480-million trade deficit. Now, you may be pro war or anti war but from a financial standpoint when your account is negative 9.7-trillion dollars, you do not add to the madness by spending an extra 10-billion.
If your business that did that, the IRS would now own everything that you had ever thought about having and you would be in debtors prison. If your bank account is overdrawn you cannot even buy a pack of gum let alone 10-billion of them every month. So how do does the government spend money that they do not have? They just print more money and borrow from China, which causes inflation to rise, which causes the dollar to lose value, which causes among a whole lot of other problems, your vacation bill to get higher when you go overseas.
O.k. I am done venting…for now about government spending but hopefully you caught the part about why they plan a budget.