Without appropriate planning, finances can quickly vanish in just one snap. Squandering might be easy, but what’s challenging is budgeting your funds, and making sure they last the next period. The real problem lies in us, where we get blinded by money immediately once it lands in our hands. One logical solution for this is to make a budget for future operations, wherein we become more responsible in handling our finances. Financial literacy does not happen overnight. But it is developed through meticulous steps taken to ensure that operations will continue smoothly.
What Is an Agency Budget?
An agency budget is a budget intended for a country’s government agency. Federal agencies in the United States consist of the Department of State, Department of Justice, Department of Health & Human Services, Department of Agriculture, and many more. For an agency budget to be provided, the first step for federal agencies is to create and submit budget requests to the White House Office of Management and Budget (OMB), the second would be the development of the president’s budget proposal according to the budget requests, and third would be the president’s submission of the budget proposal to the Congress (usa.gov/budget).
Federal Agencies and Their Budget: Who Receives More and Who Receives Less?
According to an article by Statista, the Department of Health and Human Services has the highest budget for the fiscal year of 2020, with the amount of $1,286,186. This federal agency is responsible for providing healthcare services to Americans. Aside from providing healthcare, it also provides programs such as domestic violence and child abuse prevention, drug prevention and rehabilitation, emergency preparedness, and many more. The agency with the lowest budget is the Executive Office of the President. This agency’s primary function is to provide support or help the president in terms of managing the country. It has a budget of $406,000 for 2020.
*Fiscal year is from October 1 of the current year to September 30 of the next.
Federal Budget Sources
It is common knowledge that the government gets its sample budget from taxes. But what and how many sectors really contribute to this number? Listed below are the sectors that contribute to the federal budget in 2017:
1. Income Tax
The tax rate is dependent on the income of the individual. The higher the salary, the higher the deduction. A minimum tax rate of 10% is deducted to single workers with an income of $9,875, household heads with an income $14,100, a married couple (jointly filed) or a widow with an income of $19,750, and a married couple (separately filed) with an income of $9,875. Income tax comprises 47.9% of the federal budget.
2. Social Insurance Tax
Social insurance tax is shouldered by both employees and employers. The fees are used to pay the country’s social security system. Social insurance tax comprises 35.0% of the federal budget.
3. Corporate Tax
Corporate tax is the company’s gross earnings. They comprise 9.0% of the federal budget.
4. Other Sources of Federal Budget
Other sources of federal are from other charges and fees such as gift and estate taxes. They comprise 5.6% of the federal budget.
5. Excise Tax
Excise tax or sin tax is a tax placed on unnecessary goods. Examples of unnecessary goods are cigarettes, gambling, and alcohol. Excise tax comprises 2.5% of the federal budget.
10+ Agency Budget Templates in PDF | WORD | XLS
1. Agency Budget Template
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4. European Agency Budget
5. Agency Budget Example
6. Transport Agency Budget
7. Agency Regulatory Budget
8. Agency Budget in XLS
9. Inter Agency Budget
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11. Agency Budget in DOC
How to Create an Agency Budget
Now that you already know the importance of budgeting, we will give you tips below on how to create your simple budget:
1. Choose a Tool for Your Budgeting
For your quantitative data, such as your budgeting, you need a software with spreadsheets or a budget sheet. Tools such as Microsoft Excel and Google Sheets are perfect for your budgeting. These softwares can be downloadable in your mobile, which you can have access to anytime, anywhere. The use of pen and paper will not be applicable here since a huge amount of money will be involved.
2. List Your Total Income
Before you can allot a budget for each area in your agency, enlist your total federal revenue first. Taking note of your total federal revenue first can help you divide the budget fairly. You should provide a bigger budget for the area that needs to be prioritized.
3. Prioritize According to Importance
Just like what the previous step has mentioned, provide a bigger budget for the area that needs priority. For some agencies, they prioritize research. Once you get to research, you may divide these into subparts. Once a budget has been set for research, you can set a printable budget for other areas in your agency.
4. Update Regularly
As time passes by, the budget set aside by you increases or decreases as the need arises. Therefore, you should update your agency budget regularly. Don’t be afraid to make necessary adjustments. You may use a budget calendar to accompany your budgeting.
5. Double-Check Your Agency Budget
Having to deal with numbers every day can get mind-numbing and confusing. It’s pretty normal to get some figures wrong from time to time. That’s why it’s advisable to double-check your agency budget before it’s final submission. Get a good night’s rest to clear your head before reviewing.
Taxes are the lifeblood of every country. They provide the budget to be distributed among federal agencies. And these agencies serve different purposes in different sectors of the federal government. As citizens of our country, it is our primary duty to pay our taxes regularly. They help build infrastructures, create programs, and provide benefits that make our lives easier.