The Federal Budget Process (CRS Report for Congress)
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| Release Date |
Dec. 29, 1972 |
| Report Number |
72-274E |
| Report Type |
Report |
| Source Agency |
Congressional Research Service |
Summary:
This report outlines the legislative and administrative procedures
involved in the Federal budget process. These procedures are the methods by
which the magnitude and composition of Government receipts and expenditures
are determined.
The primary purpose of the budget is to present the Administration's
requests for new spending authority to the Congress. It also contains proposals
affecting revenues of the Federal Government. In turn, the budget becomes a
basis of decision-making by the Congress as it considers the new spending
authority requested.
The President's budget is characterized by a heavy emphasis on the government's
outgo -- appropriations, obligations incurred, and outlays. Furthermore,
the administration's tax program is traditionally submitted to the Congress at
a different, generally later time than the budget. Therefore, largely because of
this organizational and separate time sequence, the Federal budget is principally
thought of as an expenditure document.
However, although much less emphasis and attention are given to revenue
and tax policy in the budget presentation and discussion, they are, in fact,
a major determinant of the volume and timing of Federal Government borrowings and
repayment of public debt securities. The budget summary tables show the relation
between estimated receipts and outlays; requested or anticipated tax changes
have been considered in arriving at these estimates.
Any budget is basically a set of plans for future action. The Federal
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budget documents are the most inclusive statement of the Federal Government's
proposed policy and plans for the budgetary period. They serve several different
purposes, some of which are: planning future outlays, reviewing previous outlays,
relating estimated outlays and receipts to indicate the need for new
borrowing or the possibility of debt reduction, and indicating the fiscal impact
of planned government action on the economy. Actually, through the new legislation
proposed and new budget authority requested, the budget is indicative of
government plans beyond the specific budgetary period.
Not only is the budget a planning instrument used by Congress and Federal
agencies, but it is also used for planning purposes by State and local governments,
individuals, businesses and other private organizations that will be
affected by Government policies and decisions. Many businesses and industries
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are substantially affected by changes in Government policies.
