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Running Head: US DEPARTMENT OF TREASURY BUDGETARY SPENDING 1

US DEPARTMENT OF TREASURY BUDGETARY SPENDING 7

US Department of Treasury Budgetary Spending

Department of treasury is a part of executive department of the United States federal government. The department was established by the congress in year 1979 to manage government revenue. Its main administrator is secretary of the treasury who serves in the cabinet. Moreover, treasurer of the United States plays a major role in the administration of the department. The department has a wide range of responsibilities. First, the department produces all the currency, coinage and postage stamps of the US. Moreover, the department collects taxes, duties and monies paid to the federal government. Another major function is the management of public accounts and public debt. Furthermore, the department supervises national banks and other financial institutions. The department also gives the federal government advice on domestic and international fiscal policies. The department also helps in enforcing federal finance and tax laws and publishing statistical reports. The treasury also joins forces with other management bodies to come up with the federal budget. First, there is Office of Management and Budget that estimates the spending for the executive branch. Secondly, there is the Joint Committee on Taxation that estimates the revenue for the congress. Lastly, there is Congressional Budget office that estimates spending for the congress. With their joint forces, the treasury helps formulate the president’s budgetary request taken to the congress for the approval. In designing the federal budget, the treasury has to act within various subcommittees jurisdictions through enactment of legislation. These subcommittees have jurisdiction over various agencies budgeting request. By year 2012, there were twelve subcommittees in both the house and the senate whose their mandate was to determine the budget ceiling for the various federal agencies.

First, there is states senate appropriation committee on agriculture, rural development, food, and drug administration. The committee has jurisdiction over the department of agriculture discretionary spending and safety programs at the food and drug administration as well as in foreign agriculture assistance program. It also oversees rural development programs like rural housing loans guarantee and rural electrification program. For 2012 fiscal year, the total budget request from the agency totaled over four billion dollars. The committee makes appropriation decisions regarding the budget that should be allocated to the department for normal operations and staffing purposes. The rest of the money is raised form user fees with pharmaceutical firms contributing the majority of the budget. In the federal budget function, the agency falls in the function 450 that is concerned with community and regional development. The function includes programs aimed at improving community economic conditions. Such programs include rural electrification and other disaster management programs such as federal insurance program.

Secondly, there is subcommittee on commerce, justice, and Science. The committee has jurisdiction over the discretionary spending at the department of commerce, department of justice, and other independent federal agencies like international trade Commission, National Aeronautics and Space Administration as well as US Commission on Civil Rights. The committee evaluates the budget proposal from the agency and then sets a budget ceiling for that fiscal year. The department of commerce fall under budget function 370 that is concerned with commerce and housing credit. The department is concerned with mortgage credit, postal service, deposit insurance, and other commerce advancement spending. Department of science falls under budget function 250 concerned with general science, space and technology. Lastly, the justice agency falls under budget function 750 that is concerned with administration of justice.

Moreover, there is a subcommittee on defense. The committee has the jurisdiction in setting the budget ceiling for the US department of defense. The department of defense is compose of office of the secretary of defense, joints chiefs of staff and the joint staff, office of the inspector general, combatants commands, and national guard bureau. The department of defense accounts for the majority of the federal discretionary spending. For instance, for 2012 fiscal year, the department of defense accounted for twenty-three percent of the budget spending. The department of defense falls under the budget function 050 concerned with national defense. Its scope of activities includes nuclear weapons related activities and national security activities.

There is also the subcommittee on homeland security. The subcommittee has the legal mandate to pass appropriation bills regarding the department budget functions. The department has responsibility of protecting United States and its territories from terrorist attacks, ma- made accidents, and natural disasters. For instance, the department has had many activities preventing Mexican drug cartels from infiltrating the US borders. Department of homeland security also regulates immigration into the United States. In the budget function, homeland security falls under function national defense. While the department of defense is tasked with military actions mainly abroad, the department of homeland security works in the civilian arena protecting the citizens of the United States from within, at, and from outside border threats.

Another subcommittee is committee on interior and environment. The subcommittee have jurisdiction over the discretionary spending for the department of environment. The department is responsible for conservation of federal land, natural resources, and administration of programs regarding American Indians, Alaska Natives and Insular areas of United States. It also invests in the safety, reliability, and efficiency of water infrastructure in America. The discretionary budget for the department for financial year was eleven billion and four-hundred million dollars. The department falls in function 300 of the federal budget that is concerned with natural resources and the environment. The function includes programs concerned with environmental protection and enhancement, recreational and wildlife areas.

Lastly, there is subcommittee on labor, health and human services, and education services. The subcommittee passes bills regarding the budgetary proposal for the department of health, department of labor, and department of education. For the 2012 financial year, the department of health and human services had an allocation of about seventy six billion dollars. The department falls under function 550 of the federal budget concerned mainly with direct health care service programs such as providing health services, national biomedical research, and promoting training for health care workforce. The department of labor had an allocation of twelve billion dollars for 2012 fiscal year. The mandate of the department is to preserve unemployment insurance safety net, creating subsidized employment opportunities and increase improved re-employment to newly separated veterans. The department falls under budget function 500 of federal budget. Lastly, the department of education had an allocation of almost seventy billion dollars for the fiscal year 2012. The department falls under the same budget function as that of labor and its mandate include reforms in the education sector, improving college access, and facilitating affordability and quality of education.

In formulating the federal budget, various agencies will continue influencing budgetary decision for the next five years. First, there is the environmental protection agency. Due to the rise in the climate change awareness, the environmental agency continues to have great influence in the budgetary policy as the government tries to meet international treaties on climate. Moreover, there is need to invest in twenty first century technology in curbing environmental preservation and abating pollution. Secondly, there is national aeronautics and space administration agency. As other countries continue to advance their research on space wars, there is more need to increase funding for research in space technology. This will help implement low cost programs of robotic exploration.

Despite committees and subcommittees mandate, there is major political influence on mandatory and discretionary spending. For instance, for 2014 financial year, the war against Islamic state has seen the United States getting involved. This led to the increment on federal discretionary spending. Moreover, the outbreak of Ebola in West Africa did need US intervention making the government increase its discretionary spending. On the other hand, politics has increased mandatory spending. The military presence in Pakistan and Afghanistan has forced an increased allocation to the military. Moreover, United States intervention on the political struggles between North Korea and South Korea has increased mandatory spending on military.

Lastly, international policies did affect budgetary policies for the 2012 fiscal year. For instance, international policies on the production of nuclear materials have led to collision between United States and the Iran government as well as North Korea. The result has been an increased spending on intelligence and surveillance thereby increasing mandatory spending. Lastly, international policy on foreign aid to the developing nations did result on increase on mandatory spending for the 2012 fiscal year.

Management and proper utilization of finances for the United States is imperative in achieving the nation’s dream. This task squarely lies on the shoulders of the treasury department with the help of other support departments. Therefore, it is the role of subcommittees to ensure the various legal procedures are adhered to while the congress and senate ensure political and international policies do not derail the growth of our economy.

References

Allen, S (2007). The Federal Budget: Politics, Policy, Process. Washington, USA :Brookings Institution Press

Idp Usa (2010). US Budgeting Process Handbook. Newyork, USA: International Business Publications

Office of Management and Budget (2013). Fiscal Year 2013 Budget of the U. S Government. Washington, USA: U. S. Government Printing Office.