It is a good thing that there are laws that act as a guiding tool to all administrative agencies. The administrative agency busks in the selection of the best method to handle the cases brought forth with respect to the procedures and priorities. Furthermore, they can adopt the best methodology that can be used in the ultimate goal stipulated by the legislature and should be in line with the statutory provisions. All this should be within the realm of the knowledge that the agency has and ultimately the enforcement policy, which in turn, grants them the right to appropriate the funds available in the most efficient and economically viable method.
Another issue that pertains the administrative bodies and particularly the federal government is the balanced budget. A Constitutionally balanced budget amendment bill has been drafted with the main aim to limit the amount the government spends and borrows. On this regard, the aim of this essay is to try and analyze the reducing federal government discretionary powers and the balanced government budget.
Reducing Federal Government Discretionary Powers
In reducing the federal government discretionary powers, various laws have been drafted and enacted with one main agenda to reduce the outrageous spending that is part and parcel of the power given to the lawmakers. Discretionary spending is the part of federal spending that the lawmakers control through annual appropriations acts and in 2013, it was about $1.2 trillion which is about 35% of the federal outlays (DMonte, 2013).More to this is the fact that the federal outplays do play a major part on the spending associated with transportation, national defense, education, the veterans’ health care, international legal affairs and enforcing the law. Therefore an increase in the spending by the federal government leads to an increase in the taxes which consequently hike the prices of commodities and therefore make the life of the taxpayer all the more burdening.
In reducing the discretionary spending, there are caps and laws that have been put in place by the budget control act of 2011.As a matter of fact, if the discretionary appropriations grow with the rate of inflation while the federal law maintains the legislative control regarding the caps and laws enacted, the outlays from the discretionary appropriations will reduce to about 5.3 % of the GDP in 2023, down from about 85 in 2013 (DMonte, 2013).
There are various options under the current law that can be used to bridge the big gap between discretionary spending and discretionary funding. Some of these options include; bridging the gap in the cost of the military by, for example, reducing the size of the military; the department of energy where, for example, changing the rules of eligibility for certain programs. Such as Pell grants.
Another option would be to reduce the amount of influence that the government has on the individual constituencies. The option will lead to a reduction in the taxes .in this, the community should have representatives whose main agenda is to try and coerce the Congress to do away with outdated programsTherefore, the Congress should have a body that presents them with all duplicative, wasteful and outdated programs that should be eliminated and therefore create a foundation for saving the taxes consequently leading to a tax cut. What all this means is that the legislation would not be amendable and members will not be able to preserve their personal and special interest (Riedl, 2013).
On this regard reducing the federal government discriminatory powers is a good economic decision. As discussed, discriminatory spending tends to be very wasteful and as such, there is a tax increase which really affects the common citizen. By reducing the spending by enacting various laws as per the constitution, efficiency will still be maintained but the major impact will be on tax reduction
Balanced Government budget
By definition, a balanced government budget is where there the total government budget for spending is equal or greater than the actual government spending and occurs during a trade cycle. The expenditure and the deficit arise because of the political incentive that the government has and therefore can spend more money than what is actually available. When a deficit occurs, the government might need to borrow from the private sector but can be reduced when the taxes are increased.
There are two particular economic cycles that determine the type of budget available: deficit or balanced. During a downturn in an economy, there is usually a fiscal deficit but during periods of economic growth, there is a decrease in this deficit because of the increase in tax returns and reduced spending. Furthermore, when there is a very slow economic growth, there is a reduction in the federal revenues but there is an increase in the spending on insurance and other social programs.
In the United States, a constitutional amendment has been referred to one of the methodologies that can be used to reduce government spending and a way to attain a balanced budget. However, debates have been against this limit to spending with the main argument that this would leave the economy vulnerable during times of recession (Pettinger, 2012).Therefore, if the amendment that requires a balanced budget regardless of the state of the economy is implemented, there are the serious risk of tipping weak economies into recession, making recessions longer and an increase in the number of people who will be terminated from their workplaces (Riedl, 2013).
One analogy that emphasizes the need for the government to balance the budget is based on states and households. According to this analogy, there is the need for the federal government to balance its budget, just as the states and household. The analogy can easily be shot down because states can borrow from capital projects such as roads, schools, and water treatment plants while households borrow in the form of mortgages (Kogan, 2017).
Therefore, it is important to reconsider the balanced budget amendment. Limiting the amount that the government spends and borrows is also a limitation to the growth of the economy. The world is very unpredictable and periods of recession will dictate the state of the economy. Therefore, though the nation might face long-term fiscal problems, the idea of a government balanced budget is a wrong call.
DMonte, S. (2013, December 12). Options for reducing the deficit: Discretionary spending. Retrieved from Congressional;l budget office: www.cbo.gov/publication/44958
Kogan, R. (2017, January 18). Constitutional balanced budget Amendment poses a serious risk. Retrieved from Centre on budget and policy priorities: www.cbpp.org/research/Constitutional balanced budget Amendment poses serious risk
Pettinger, T. (2012, November 28). balanced Budget. Retrieved from Economics: www.economicshelp.org
Riedl, B. (2013, February 12). Ten guidelines for reducing wasteful government spending. Retrieved from heritage.org: www.heritage.org/budget-and-spending/report/Ten guidelines for reducing wasteful government spending