What is the federal budget?

The federal budget serves as a comprehensive plan that outlines how the federal government intends to allocate its financial resources over the upcoming year. It details both the expected revenues, primarily from taxes, and the planned expenditures across various sectors and programs, including defense, education, healthcare, infrastructure, and social security. This holistic forward-looking framework is essential for guiding government spending decisions, reflecting current priorities, and managing the economy's macroeconomic aspects.

In contrast to the federal budget, a detailed outline of taxes to be collected focuses specifically on revenue generation rather than the overall financial picture. The specific allocation for social security programs represents just one aspect of the budget rather than capturing its full scope. Lastly, the financial plan for state governments relates to individual state budgets and their specific resources and responsibilities, which are separate from federal budgeting processes.