There are budget departments at the local, state, and federal government levels. At each level, this department is responsible for developing annual fiscal budgets based on expected revenues and expenses. Each state tasks all the budget departments under its jurisdiction with ensuring that employees receive their paychecks as scheduled. These departments are also responsible for analyzing local expenses and making recommendations about whether they're appropriate or excessive.
Budget departments are responsible for three types of spending: mandatory, discretionary, and interest. The first type of spending pays for services and programs provided by government agencies. The third type, interest spending, is based on the amounts of money received by government agencies from their bond (debt) revenues. Discretionary spending is based on the amounts of money available for spending after all essential expenses have been paid.
Does a Budget Department need to present a balanced budget?
It depends on the laws and regulations in that particular state or local jurisdiction. Some states' government agencies are legally required to have balanced budgets, while other agencies do not. For example, the President of the United States isn't legally required to have a balanced budget, but the U.S. Congress' budget does need to be balanced.
Why do government agencies need to have Budget Departments?
Budget departments are required under local, state, and federal laws. These departments are mandated to plan for all revenues and expenses. Without this type of department, government agencies would probably overspend their revenues, and might be driven to raise taxes excessively.
Where can I learn about government Budget Departments' fiscal plans?
Budget departments must report their fiscal plans as well as their actual spending. So, it's possible to research government agencies' budgets dating back several years.