Budgeting Accounting Term Paper (Term Paper Sample)

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Ordinarily, the state and the federal budgeting will differ in many ways.”Unlike the federal government, states are not able to issue debt routinely. Issues of general obligation debt require at least the approval of the legislature and in many states, voter approval. The issue of revenue bonds requires legislation to create an agency to issue bonds and the creation of a revenue stream to repay the debt. These practices mean that the issuance of debt is fully in the public view. It is extremely rare for a state government to borrow long-term funds to cover operating expenses." CITATION Pau102 \l 1033 (Paul, 2010) .Therefore it at most of the time faces financial crisis when budgeting.
As opposed to the federal government, state budget cannot exceed expected revenues. There is also a limit on how much debt the state is allowed to issue.  Ordinarily, the state budget is limited by three factors which are the constitutional requirement of a balanced budget, the constitutional limit on debt service, and the Governor's ability to set the revenue estimate as opposed to the federal budget which is majorly affected by the international accounting standards. CITATION Pau123 \l 1033 (Mark, 2012)
In terms of budgeting, the federal government controls the money printing press, the mint; therefore, it legally prints currency. The federal government therefore wills directly monitors circulation of money through the Federal Reserve. The budgeting often is made easier since the deficits are easily found and filled. On the other hand the State and local governments cannot print money and therefore there could be struggles in the budgeting process in case of deficits.
The federal government has a sovereign bank and can print additional money when the need arises. This is an advantage because incase of the budget deficit it will sought out the issue without struggle as compared to the state budgeting which will have numerous struggles. The federal budgeting also has tools to affect inflation which in turn affect repayment. Therefore, it is not devastating for the federal government to have a lot of deficit because can it can handle the servicing of the existing debt. In the state budgeting, the Governor is the budget Director and is responsible for establishing the official revenue estimate. The Governor is assisted in this responsibility by a state economist under contract as a consultant with OPB, which serves as the budget staff for the Governor CITATION Pau123 \l 1033 (Mark, 2012).On the other hand, the president is the pioneer of the federal budget which is often discussed in the congress for legislation. CITATION Max15 \l 1033 (Maxwell, 20015)
The annual federal budget process begins with a detailed proposal from the President; Congress next develops a blueprint called a budget resolution that sets limits on how much each committee can spend or reduce revenues over the course of the year; and the terms of the budget resolution are then enforced against individual appropriations, entitlement bills, and tax bills on the House and Senate floors CITATION Max15 \l 1033 (Maxwell, 20015).
On the other hand, the state process involves the meeting of the General Assembly can meet to amend the budget in effect. The state law requires all state agencies to submit a request for appropriations for the next fiscal year to OPB no later than September 1 of each year. Most agencies start preliminary work on these requests in the spring for a fiscal year that is 14 to 15 months in the future. The Governor normally appears before a joint meeting of the House and Senate Appropriations Committees during the first week in January to announce his recommendations for amending the current year's budget CITATION Pau123 \l 1033 (Mark, 2012).
The federal budgeting is good than state budgeting because the federal deficit is often paid by the issuance of various types of government bonds. The interest rate paid is little, which is about 2%. This makes the federal government have no problem selling the various types of bonds. On the other hand, sates government suffers problems in raising the bonds because; it requires voter approval and acceptance b...