The Federal Budget Process Essay - 2864 Words

Running head: The Federal Budget Process The Federal Budget Process Abstract This report focuses on the federal budget process of the United States of America. The annual federal budget begins with a detailed proposal from the President in February. The budget request is developed by the President’s Office of Management and Budget (OMB). Next, Congress creates a blueprint called a budget resolution that sets limits on how much each committee can spend (or reduce revenues) over the course of the year. The terms of the budget resolution are then enforced against individual appropriations, entitlement bills, and tax bills on the House and Senate floors. In addition, Congress sometimes uses a special procedure called†¦show more content†¦Second, the president uses the budget request to lay out his relative priorities for federal programs (Myers, et al, 1989; Policy Basics, 2011). â€Å"The President’s budget is very specific, and recommends funding levels for individual federal programs or small groups of programs called â€Å"budget a ccounts.† The budget typically sketches out fiscal policy and budget priorities not only for the year but for the next five years or more. It is also accompanied by historical tables that set our past budget figures† (Policy Basics, 2011 Para 4). The third role that the President’s budget plays is that it can be used to alert Congress of what spending and tax policy changes the President recommends. It is not necessary for the President to propose legislative changes for those parts of the budget that are governed by permanent law if he feels none are needed (Policy Basics, 2011). Majority of the federal tax code is set in permanent law, and will not expire. Similarly, more than one-half of federal spending – including the three largest entitlement programs (Medicare, Medicaid, and Social Security) – is also permanently enacted. Interest paid on the national debt is also paid automatically, with no need for specific legislation. (There is, however, aShow MoreRelatedBalancing The Federal Budget Process2282 Words   |  10 PagesProject Joint Paper: Balancing the Federal Budget Luis A. Santiago-Gaetan, Abby Baumann, and Erin Kirchner University of Massachusetts-Amherst Introduction This is Red Team’s joint paper on balancing the budget of the government of the United States of America. Red Team’s (from here on we/our) position regarding balancing the budget and reducing the federal deficit varies slightly. In many ways some team members believe that the federal budget is much like any other budget, with a set amount of moneyRead MoreBalancing The Federal Budget Process2278 Words   |  10 PagesBalancing the Federal Budget Luis A. Santiago-Gaetan, Abby Baumann, and Erin Kirchner University of Massachusetts-Amherst Introduction This is Red Team’s joint paper on balancing the budget of the government of the United States of America. Red Team’s (from here on we/our) position regarding balancing the budget and reducing the federal deficit varies slightly. In many ways some team members believe that the federal budget is much like any other budget, with a set amount of money coming in, a setRead MoreThe Evolution of the Federal Budget Process989 Words   |  4 PagesFederal spending is necessary for the economy and is essential to the accomplishment of national goals and advancement. 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