Discuss how the discretion-abuse-control cycle applies to your findings
The Overspending of Medicare” at the federal government level
Introduction
The wasteful government spending can hit the fiscal policy of the country. In the United States of America, some wasteful governing spending has been observed. It has created a direct impact on the financial strength of the country. There are some ways to reduce this unnecessary spending. The purpose is to utilize financial resources at the right time for people. Several audit reports revealed that there are many unknown transactions. These unknown transactions indicate wasteful spending at the macro level.
Medicare Overspending
Medicare overspending is wasteful. As compared to the Department of Veterans Affairs, the health department is paying double for the same medical equipment and suppliers (Riedl, 2005). These are examples of wasteful spending, and it is imperative to reduce these spending to strengthen the financial position of the country. The government has provided medical insurance for anyone over 65 ages. However, it seems necessary to identify people who are affected by these mistakes. The government can save $20 to 30 billion dollars by reducing overspending (Laliberte, 2018).
Discretion-Abuse-Control Cycle
Discretion-Abuse-Control Cycle can be applied when reducing the wasteful spending in the country. For Instance, government employees usually contain the discretion to depict certain behavior to avoid revelations or confidential information. Government officers are using power for personal gains. Thus, the Discretion-Abuse-Control Cycle is a better choice to monitor different government officers. It is to be ensured that officers are not overspending. It is a kind of control on the government spending, and it has been practiced successfully in the United States. This policy enables the proper check and balance at the government level, and it is also effective when making monetary policy. It is a fact that taxpayers are burdened. Only 0.5 of Medicare Claims are to be reviewed. Double billing and fake billing are two possible causes of Medicare overspending. Recovery Audit Contractor Program has been introduced. The Discretion-Abuse-Control Cycle can be applied, as the government can reduce the overcharging and inflated prices. The abuse control can be eliminated because this program provides a platform to reduce causes and loopholes (Amadeo, 2018).
Conclusion
In the end, it is to conclude that wasteful spending at the government level creates a negative impact on the budgeting process. It seems important to identify these wasteful spending and make different strategies to enable the sustainable financial process. Discretion-Abuse-Control Cycle can be a good move by the government, as it enables complete control. Spending money at the right time for the right purpose is a need of the country. Money should be spent only on needed projects, and policymakers can play a big role in this regard.
References
Amadeo, K. (2018, March 15). Discretionary Fiscal Policy. Retrieved from https://www.thebalance.com/discretionary-fiscal-policy-3305924
Laliberte, M. (2018, January 22). 11 Bizarre Things the U.S. Government Actually Spent Money On. Retrieved from https://www.rd.com/culture/wasteful-government-spending-examples/
Riedl, B. (2005, April 4). Top 10 Examples of Government Waste. Retrieved from https://www.heritage.org/budget-and-spending/report/top-10-examples-government-waste
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