When a government shutdown takes place, how will the federal government spend?
Posted October 28, 2018 09:57:52 When a shutdown takes the lives of thousands of Americans and puts the nation’s economy on a tight leash, there is always the chance that some government will be able to get back on track.
Unfortunately, the chances of that happening are very slim.
That is because federal budget sequestration, which took effect on October 1, has not gone down well with the public.
“People are actually blaming the government for not having enough money,” said Richard Kochel, the chief executive of the American Association of Retired Persons.
“The government is the only one in this country that has a fixed budget.
It’s not the people who make up the budget.
The government is not the one that has to make these tough choices.
People are just really blaming the federal budget.”
In reality, the federal fiscal year ends on December 31.
The federal government has a $19.7 trillion budget.
Even before sequestration took effect, the government was running about $600 billion under its original budget.
That amount is expected to go up, however, as the Trump administration continues to pursue a range of tax cuts, the budget is projected to be more than $600 million short of what it needed to be.
The budget gap between the Trump and Obama administrations has been a major source of frustration among some lawmakers.
In January, for example, House Republicans held a meeting with their respective leaders to discuss how to raise the debt ceiling.
At that time, it was estimated that the Trump-Obama administration would need $20.4 trillion to balance the federal books.
But with the sequestration taking effect, that amount is likely to grow to nearly $40 trillion by the end of 2021, according to a new study by the nonpartisan Tax Policy Center.
The Trump-Trump administration is likely already cutting $4 trillion in federal spending in 2018 alone.
While the government is unlikely to be able back on the road to recovery, it is important to note that it is unlikely that sequestration will lead to an immediate spike in spending.
A sharp increase in federal borrowing could push up the overall debt limit by more than 20% of GDP in 2021, the CBO said.
It’s also important to remember that the current fiscal year has been the first one with no federal government spending cuts.
This year, the House passed a $1.9 trillion spending package to fund the government, while the Senate passed a bill that would have included $1 trillion in spending cuts, which is about $500 billion less than the House bill.
What to expect in 2021 As sequestration takes effect, it will be extremely difficult to predict what will happen.
It is possible that the economy could pick up, but it is also possible that government agencies could take a hit, according, Kocher said.
In either case, the Trump government will have to find ways to keep the federal workforce on its toes, and will likely have to take steps to keep up with the growing demand for services and products.