[1] The federal budget is representation of the financial plan for the goals and activities of the government which in turn reflects the debates surrounding the various economical principles and ideas.
It is the main means of the redistribution of the national income and gross domestic product to meet the needs necessary in order for economic growth.
Primarily, the government spends a significant amount of their financial resources in the areas of healthcare, the old and young and social security programs.
The United Kingdom currently doesn't require federal governments but in the United States for example this model is needed as there exists mass population throughout the country in addition to the diverse group of people with diverse needs but federal government suits due to the common culture and values set in place.
This type of spending forms a part of fiscal policy and is a contrast to the programs that are mandatory where people can be entitled to benefits if they are eligible.
This is a non-operating expense shown on the income statement and it represents the interest payable on any borrowings – bonds, loans, convertible debt or lines of credit.