Mastering the Labyrinth: A Comprehensive Guide to the Federal Budget Process

Introduction to the Federal Budget Process

5 out of 5

Language	:	English
File size	:	307 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	36 pages
Lending	:	Enabled

FREE

The federal budget process is a complex and intricate system that governs how the United States government raises and spends money. Understanding this process is essential for anyone who wants to participate in or influence public policy debates. This guide will provide you with a comprehensive overview of the federal budget process, from the development of the budget to its execution and evaluation.

The Budget Cycle

The federal budget cycle is a 12-month process that begins with the development of the President's budget proposal in February. The President's budget is then submitted to Congress, which has the power to approve, amend, or reject the proposal. Once Congress approves the budget, it is signed into law by the President and becomes the official federal budget for the fiscal year (which runs from October 1 to September 30).

The budget cycle includes the following steps:

• Development of the President's budget proposal: The President's budget proposal is developed by the Office of Management and Budget (OMB) and is based on the President's policy priorities and economic projections.
• Submission of the budget proposal to Congress: The President's budget proposal is submitted to Congress on the first Monday in February.
• Congressional review and approval: Congress reviews the President's budget proposal and makes any necessary changes. The House of Representatives and the Senate each pass their own budget resolutions, which are then reconciled into a single budget resolution that is approved by both chambers.
• Presidential signature: Once Congress approves the budget resolution, it is sent to the President for his signature. The President can sign the budget resolution into law or veto it.
• Execution of the budget: Once the budget is signed into law, it is executed by the executive branch of government. The OMB allocates funds to federal agencies, which then use the funds to carry out their programs and activities.
• Evaluation of the budget: The budget is evaluated throughout the fiscal year by Congress, the OMB, and other government agencies. The evaluation process includes assessing the budget's impact on the economy and on government programs and activities.

The Role of Congress

Congress plays a central role in the federal budget process. Congress has the power to approve, amend, or reject the President's budget proposal. Congress also has the power to raise taxes, appropriate funds, and audit the federal government's financial activities.

The House of Representatives and the Senate each have their own committees that are responsible for overseeing the budget process. The House Budget Committee is responsible for developing the House budget resolution. The Senate Budget Committee is responsible for developing the Senate budget resolution. The two committees work together to develop a single budget resolution that is approved by both chambers.

The Role of the President

The President also plays a central role in the federal budget process. The President develops the budget proposal and submits it to Congress. The President also has the power to veto the budget resolution that is passed by Congress.

The President's budget proposal is based on his policy priorities and economic projections. The President's budget proposal typically includes proposals for new programs and initiatives, as well as proposals to cut or eliminate existing programs and initiatives.

Budget Terminology

The federal budget process involves a number of specialized terms. Here are some of the most common terms:

• Appropriations: Appropriations are laws that provide funding for federal programs and activities. Appropriations are approved by Congress and signed into law by the President.
• Budget deficit: A budget deficit occurs when the government spends more money than it takes in. Budget deficits are financed by borrowing money from the public.
• Budget resolution: A budget resolution is a

Introduction to the Federal Budget Process

5 out of 5

Language	:	English
File size	:	307 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	36 pages
Lending	:	Enabled

FREE