The United States of America Budget
The United States of America budget is made up of concerns concerning the United States of America government's revenues and spending throughout a given fiscal year. The budget is based on predictions, with provisions for variances to account for fluctuations.
Federal Cumulative Surplus
The term "federal cumulative surplus" refers to the positive balance that happens at the conclusion of a fiscal year when revenue and spending have been balanced within a particular budget. The cumulative federal government deficit in 2016 was $585 billion, while the provincial government deficit in Ontario was $5.7 billion. In the year 2017, the United States of America government is projecting to collect a total of $3.21 trillion in the form of tax revenue. The United States of America is also projecting to spend a total sum of $3.65 trillion over the given fiscal year. The United States projected budget is expected to post a deficit of $443 billion which is a representation of 2.6 percent of the United States Gross Domestic Product (GDP). The Ontario provincial government projected budget deficit for the fiscal year 2017 is $4.3 billion.
Accumulated Per Capita Debt
With a population of 13.6 million people and accumulated debt of $5.7 billion, the accumulated per capita debt for each citizen of Ontario (5.7b/13.6m) is $420 and the accumulated debt for the combined debt of both the federal and Ontario provincial government is debt $(585B/323.1M) + $420 = $2230 for each Ontario citizen.
Future Implications of Debt
The future implications of the debt to the people of Ontario is that the government may need to increase taxes and other levies in the future in order to raise money to cover the budget deficit.
Deficit in Ontario Provincial Government Budget
In this case, there is a deficit in the Ontario provincial government budget both accumulated and the projected. Each citizen is recommended to pay for their personal portion through taxes and levies paid to the Ontario provincial government.
Comparable Per Capita Income
Comparable per capita income refers to a comparison of two states per capita income. Comparable per capita income depicts a country's state of economy as far as the creation and distribution of income amongst citizens is concerned. The per capita deficit in the United States of America is ($(585B/323.1M)) $1811. The Canadian budget debt stood at $1.412 trillion in 2016. With a population of 36.29 million, the accumulated per capita debt is ($1.412t/36.29m) $38,915.
Conclusion
Therefore, the Americans are in a relatively better position than the Canadians as the American per capita debt is lower.
Reference
Budget of the united states government fiscal year, appendix: 2018. (2017). US Government Printing Office.
Conference Board, Inc. (2016). Ontario Budget 2016. Ottawa: The Conference Board of Canada.
Thompson, W. C. (2017). Canada 2017-2018. Lanham, MD: Rowman & Littlefield.
