PAYGO Government Budgeting

Paper Summary:

This paper explains how PAYGO aims to balance the state budget as well as control deficits by either raising or lowering tax cuts. The paper first discusses how PAYGO is being used today and its effects on the budget deficit. The paper then identifies the problems of PAYGO and its impact on the Obama administration's recession stimulus package. The paper explores the reasons in favor of retaining PAYGO and concludes that PAYGO is a useful fiscal policy tool that helps to control and balance the budget.

Outline:
Introduction
PAYGO's History
How PAYGO Works
How PAYGO is Being Used Today
Effects of PAYGO on the Budget Deficit
Problems Facing PAYGO
Stimulus Package Debate
Reasons for Retaining PAYGO
Improvements in PAYGO Policies and Laws
Conclusion

From the Paper:

"Budgeting is very important as it enables people to keep track of their finances. This is because they will account for the revenues they expect to get and the expenses they are likely to incur in the course of various transactions they engage in. Just as individuals and businesses budget for their current and future operations within specific time frames, the state also undertakes its own unique form of budgeting. It has to budget on how much money it will allocate to various sectors of the economy so as to increase the wealth in the economy and enhance equal distribution of resources across all sectors."

Sample of Sources Used:

• Garrett, E., Graddy, E. & Jackson H. E. (2008). Fiscal Challenges: An Interdisciplinary Approach to Budget Policy. Cambridge University Press, 2008 p. 12
• Lucas, J. B. (2005). National deficit and debt: where to next? Nova Publishers, 2005 p. 25
• Muhleisen, M., Towe, M. C. & Cardarelli, R. (2004). U.S. fiscal policies and priorities for long-run sustainability. International Monetary Fund
• Concord Coalition (2008). PAYGO's Continued Relevance in Economic Recovery and Strategic Budgeting http://www.concordcoalition.org/issue-briefs/2008/1119/paygos-continued-relevance-economic-recovery-and-strategic-budgeting
• Paygo Is Not Dead, It's the Way Ahead. (2008, March 12). Wall Street Journal (Eastern Edition), p. A.19.

More papers on PAYGO Government Budgeting:

• Term Paper # 95256 : "Government Budgets"
• Analytical Essay # 146066 : "The Powers of Budgeting"
• Comparison Essay # 26222 : "State Budgeting vs. Federal Budgeting"

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