The first glance at the financial system of the USA may reveal a difficult picture with lots of government structures for control, different banks, and other financial organizations like Payday Depot that serve people with their issues. However, the whole structure is well organized and works efficiently.
The Main Powerful Body
According to the US Constitution, the Congress in the financial sphere has the right to:
- Establish and collect taxes equally throughout the territory of the United States.
- Pay debts, make loans, mint coins, and regulate the value of the currency of the United States.
- Establish penalties for counterfeiting government valuables papers and coins.
Formally, the Constitution establishes a monopoly of powers of the Congress: the President has no financial powers. However, since 1921, the preparation of the budget and the largest financial bills were entrusted to the executive power, that is, the initiative in this important area of public administration passed to the President.
However, Congress retained real influence here. Finances (money bills) accepted by it provide for the increase, reduction, or non-admission of appropriations requested by the executive power, often significantly changing the goals and volumes of such appropriations compared to the requested ones.
The US Congress has several special structural subdivisions whose activities are aimed directly at solving certain issues in the financial sphere.
The main role among these units belongs to:
- The main budget and control department carries out external financial control over the activities of ministries, departments, and government agencies of the United States.
- Analytical and budgetary management, which is entrusted with the functions of examination of draft laws on financial issues and government programs, analyzes the implementation of the federal budget. The main purpose of its activity is to assist the parliament in making a more rational budget choice.
Since the USA is a presidential republic, the entire executive power is concentrated in the hands of the Head of State — the President. There is no post of prime minister in the USA, and the President heads the government, which is called the Cabinet.
It should be noted that the US Constitution does not say a word about the Cabinet, but since the presidency of Washington, the Cabinet has firmly entered the state custom. This body under the President of the United States consists of secretaries (ministers) and is appointed by the president with the advice and consent of the Senate. This means that the Senate has a 2/3 majority votes that must be approved by the government appointed by the president, but the upper house of Congress never refuses the President to approve his proposals.
As the head of the executive power, the President may demand from the head of each executive department (ministry) a written opinion on any matter within his competence. This wording allows us to conclude that the government is a higher collegial body, and there is no executive power of general competence in the USA. Heads of departments can only express their opinion to the President on issues related to their responsibilities, acting as advisers to the President. All decisions on matters of his competence are taken by him alone.