U.S. Federal Government Fiscal Year Begins October 1st

August 31, 2013

Federal Government Fiscal Year

One of the most important fiscal years for the economy is the Federal Fiscal Year, which defines the U.S. government's budget. It runs from October 1 of the prior year through September 30 of the year being described.

FY 2012 is from October 1 2011 through September 30 2012.
FY 2013 is from October 1 2012 through September 30 2013.
FY 2014 is from October 1 2013 through September 30 2014.

FY 2015 is from October 1 2014 through September 30 2015.

U.S. Federal Budget Breakdown

Understand All the Components of the Current Budget

In the beginning of each year, the President presents his annual budget to Congress. It outlines the expected revenue and expenses for the following fiscal year. They then negotiate a final budget over the next nine months. In a good year, it gets approved before the next fiscal year starts on October 1.

When the two parties are fighting for power, it can take longer. For example, the FY 2013 budget was never actually approved. Instead, Congress passed two continuing resolutions to keep the government running until the end of the 2013 Fiscal Year (September 30, 2013). These resolutions also incorporated the spending reductions mandated by sequestration.

Similarly, the FY 2012 budget barely got approved by December 2011, two months behind schedule. The FY 2011 budget didn't get approved until April 2011 -- six months behind schedule. Many government agencies almost had to shut down. Most experts agree that the FY 2014 budget won't get approved, either.

The federal budget is important to you because it spends your hard-earned tax dollars -- lot's of them! Find out where your money goes, why the government overspends each year, and how this impacts the economy and you.

Revenue

Most of the government's revenue comes from you!

The Federal government plans to take in $3.034 trillion for FY 2014. Most of the taxes are paid by you, either through income or payroll taxes:

Income taxes contribute 46%.

Social Security, Medicare and other payroll taxes are 34%.

Corporate taxes are only 11%.

Excise taxes, tariffs and other revenue make up the remaining 9%.

It's estimated that each taxpayer worked until April 18 this year to pay for all Federal revenue collected. This is known as Tax Freedom Day. Can you think of any other purchase you make that you've worked as hard and as long for?


http://useconomy.about.com/od/fiscalpolicy/tp/US_Federal_Budget.htm