Government Budget Process Over the Term Paper

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("Bender," 2010)

Evaluate how Public Policy Decisions Affect the Receipt of Revenues

Politics and attitudes about where the various revenues should be spent can create heated amounts of debate. In the case of the Department of Defense, this can mean that periodic reviews could occur that can have an impact upon a host of different spending programs. At the same time, various assessments will take place with Secretary of Defense. Where, they will review the size and necessity of the various bases / personnel. A good example of this can be seen when the Secretary of Defense will recommend various base closures and force adjustments. As politics and changes in the Department's needs / availability of funds will affect what programs are going to receive the most appropriate amount of revenues.

Analyze the Economic Conditions that Affect Revenue Projections

The economic conditions will play a major role in determining how much spending will occur within the Department of Defense. The reason why is because, the tax revenues are dependent upon economic conditions remaining strong. As a significant portion of the federal budget, is reliant upon income taxes receipts. During times of economic contraction this can be problematic, as it will cause the underlying levels of revenues to decline. At which point, the Department of Defense will face budgetary issues, as they are forced to reduce spending or have some kind of freeze in place.

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A good example of this can be seen with comments from the White House. Where, they were critical of the Pentagon for not cutting spending, in many different programs that were often considered to be "sacred cows." However, the various budget issues and recession have made many of these programs vulnerable. This is significant, because it shows how economic conditions and politics could have an impact upon the way various revenues are utilized at the Department of Defense. (Dupy, 2010)

Clearly, revenues for the Department of Defense are derived from a portion of the total: income, excise and special taxes that are received from the U.S. government. As a result, the underlying revenues and how they are spent will be subject to changes in the economy. While at the same time, politics can have an impact upon various spending programs. When you put these different elements together, this shows how these the various revenues that can have an effect upon the Department of Defense. As they must be able to wrestle with these different objectives, whilst maintaining focus on addressing the national security issues facing the country......

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