One indicator of sensible fiscal practices is maintaining balance between spending and revenues. Occasional deficits may be necessary.
At the federal level, the two categories of budgetary expenditures are entitlement and discretionary spending.
Block grants and unfunded mandates are two government budgetary practices that can have significant implications for lower levels of government.
Federal and state governments have tried to change budget rules to control government spending. Budget rules have also been used to impose fiscal discipline.
Under the U.S. Constitution, people are entitled to compensation when a government takes their property. This is known as a taking.
Policymakers can take action to stimulate the economy.
Government budgets reflect the priorities of policymakers. They specify what programs and activities the government will support and how to raise the money needed to fund them.