Treasury Budget
Categories: Econ
The Treasury of the U.S. is the U.S. government’s big fat bank account. Every month, the U.S. Treasury sums up accounting via the Treasury budget (its fiscal year starts in October).
The Treasury budget shows planned spending, and whether spending went as planned. A surplus means they spent less than they had earmarked for a specific purpose. For instance, if they spent less on unemployment insurance this month than they had saved up for unemployment insurance. Deficits mean the opposite: overspending compared to what was earmarked for a specific purpose.
The Treasury budget is necessary for the government to have visibility into its own doings. Any policy changes, new laws, or changes in the tax code will be reflected in the budget. And yeah, it’s publicly available. You can go look it up now, if you want.
It’s no surprise that stock markets are affected by the Treasury budget. There’s a lot in there, but traders are mostly looking at the overall deficit. When the deficit is higher, it means more Treasury bonds are being sold in the market, which makes them worth less. Higher supply of Treasury bonds makes the demand (and the price) for them go down. When the government debt is lower, there are fewer bonds on the market, and they’re consequently worth more.
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Finance: What is a Budget?43 Views
Finance a la shmoop what is a budget? that's that thing you throw right out [Woman throws budget out the window]
the window just before you start doing all your Christmas shopping
right but generally it's a plan that lets you see where your money will be
spent if you have a personal budget well you'll be able to decide ahead of time [Personal budget example]
how much money you'll spend on clothes, food, megaphones to annoy and anger your
neighbors and you know whatever floats your boat if you own a company well
you'll probably have much more complicated budget for things like
advertising and lawyer fees either way the plan helps you make sure that you
have enough moolah for everything you need and maybe some leftover for stuff
you want.....Joan wants to control her money so she decides to set up a budget for [Joan setting up a budget on a laptop]
next month she makes a thousand bucks from her summer job and well here's what
her budget looks like.....
Now Joan knows exactly where every penny is gonna go she's not [Joan driving a car]
gonna be caught off guard by any surprise expenses she's not gonna spend
$200 on safecracking equipment and then realize she doesn't have enough left [Joan stood beside a vault of gold bars]
to pay her phone bill although if she does get hit with some unexpected
expenses well hopefully yeah she can just pawn some of those exotic vases she
took from the Peterson place [Joan holding a vase]