You are an advisor to Congresswoman Kay Granger (R-Texas), Chairwoman of the
U.S. House of Representatives Committee on Appropriations.
The U.S. Congress is at yet another budget impasse for Fiscal Year 2024 (FY2024), which
began
on 1 October 2023. Congresswoman Granger has asked you to write her a memo addressing
the
following three issues:
Question #1: Using the standard measurement of government expenditures as a share of GDP,
what is your estimate of the size of the public sector in the United States in FY2023?
Question #2: Based on historical budget data, how has the fiscal profile of the federal
government in the United States evolved since 1940, as indicated by changes in revenue
composition, expenditure priorities, and fiscal balance?
Question #3: Many claim that the federal government’s role is now largely pre-determined
because there is very little discretional spending – do you agree with this assessment?
The principal source of historical, current, and projected federal budget data in the United States
is from the executive branch of government, as follows:
Office of Management and Budget, Executive Office of the President of the United States,
Budget of the U.S. Government, Fiscal Year 2024 (Washington, D.C.: U.S. Government
Publishing Office, 2023).
This can be accessed for free at:
https://www.govinfo.gov/app/collection/budget/2024
Focus on Budget of the U.S. Government, Analytical Perspectives, and Historical Tables.
Kindly note for Historical Tables you must download a zip file, which will include both an
overview PDF file and detailed Excel data files.
There are also numerous third-party sources such as research institutes (“think tanks”) and
community-based organizations (“watch dogs”). One of the most interesting products of these
non-governmental sources is the Debtfixer Simulation, created by the Committee for a
Responsible Federal Budget.
The simulator can be accessed for free at:
https://www.crfb.org/debtfixer
Using only the two sources listed above, please address the questions raised by
Congresswoman
Granger. Be sure to state the assumptions underlying your analysis and give specific examples
to
support your responses. Since everyone is using the same sources, there is no need to provide
citations via footnotes or endnotes.
Your policy memo should be limited to two, double-spaced, typed pages, including graphs and
tables. Paper should be standard size (8 ½ x 11 inches), margins reasonable, and font readable
(no smaller than 12 point).