Question

ompared with state and local government spending, the federal government __________. Select the correct answer below: most often has a balanced budget can spend more than 5% of its budget on net interest per year spends more on education

Answer 1

The federal government most often has a balanced budget compared with state and local government spending.

Step-by-step explanation:

Compared with state and local government spending, the federal government most often has a balanced budget. Unlike state and local governments, the federal government has no requirement to balance its budget and can run a deficit or surplus. While state and local governments must close any gaps between revenues and spending, the federal government can borrow money to cover its deficits.

Answer 2

State and local government spending is substantial, with education being the largest expenditure. Unlike the federal government, state governments have balanced budget laws.

Step-by-step explanation:

State and local government spending is significant, amounting to about $3.1 trillion in 2014. While federal government spending receives more media attention, state and local governments also allocate a substantial amount of their budgets. Education is the largest expenditure, accounting for around one-third of the total spending, with the rest allocated to programs like highways, libraries, hospitals, parks, and public protection services. Unlike the federal government, state governments have balanced budget laws that require them to close any gaps between revenues and spending through higher taxes, lower spending, or utilizing previous savings.