Public goods are available to all society members without reducing their availability. They must be non-rivalrous and non-excludable. Government provides public goods through taxes
Budget deficit occurs when government spending exceeds revenue. Budget surplus happens when tax revenues exceed spending. Cyclical deficit arises during economic downturns. Structural deficit persists regardless of economic cycle
Public finance manages government revenue, debt, and expenditure. Revenue comes from taxes, investments, and other government sources. Government expenditures include healthcare, infrastructure, and salaries. Budget outlines government spending during fiscal year
Established in 1789 to manage government revenue. First secretary was Alexander Hamilton, appointed by George Washington. Department is customarily referred to as "Treasury" without article. Treasury Department budget for 2024 is $16.5 billion
Government budget balance is the difference between revenues and spending. Budget surplus occurs when taxes exceed spending, deficit when spending exceeds taxes. Budget balance can be broken down into primary balance and interest payments
President submits budget proposal to Congress annually, typically in February. Congress passes appropriations bills, which must be approved by both houses. Budget committees set spending limits and approve individual appropriations. President can veto or sign appropriations bills, requiring two-thirds majority