Saturday, November 15, 2014

What are the 6 steps of how the annual budget of the federal government prepared and passed?

There are actually more than six steps, but the main ones
are as follows:


1. By the first Monday in February the
President submits budget to Congress.


2. February-September
Congressional phase.  Agencies interact with Congress, justifying and explaining
President’s budget. The House and Senate Committees on the budget draft budget
resolutions. The budget resolution is a kind of blueprint for actually appropriating
money for the budget. Differences between the House and Senate budget reports are
resolved in a conference report which then needs to be approved by both houses. The
budget resolution is supposed to be pased by April 15, but this date is often
missed.


3. Discretionary spending (as opposed to
entitlements like social security) is in the form of appropriation bills, involves
annual actions that must be completed before the beginning of a new fiscal year. These
bills much be passed by both houses of Congress.


4. Within
10 days after approval of a spending bill (in some years such bills may not be passed,
see below), Federal Agencies submit apportionment requests to OMB for each budget
account.


5. Within 30 days after approval of a spending
bill, OMB apportions available funds to agencies by time period, program, project, or
activity.


6. October 1 Fiscal year
begins.


In practice, the budget process often gets delayed
and the Congress has to pass continuing resolutions in order to keep the government
operating.

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