US Budget Process is a lengthy one. It entails lots of discussions and two to three sessions to prepare the final draft of the budget. A number of things have to be taken care of before the budget is announced. The US budget involves both the Legislative and the Executive part of the government. The US budget is a Presidential budget.
The President presents a budget at the House of Commons on the 1st of February of a fiscal year. The budget is read out in front of the Congress and the Congress after making significant changes in the budget appropriates it. It is the Congress which has the final say over the budget and it is the Congress which allots funds for the various sectors of a country's economy. Within the period of reading the budget and declaring the final one with the consent of the house a number of documents are produced by both the branches of the government.
The Act Permitting Budget Session
The process of budget submission by the President takes place under the Act of Budget and Accounting which came into force since 1921. According to the Act a bureau known as the Bureau of Budget was set up which later came to be known as the Office of Management and Budget. This office controls the budget procedure and looks after not only the managerial area of the budget but also advices the President regarding various issues.
Apart from this the Congressional Budget is also governed by certain guidelines laid down by the Congressional Budget and Impoundment Control Act of 1974. The Congressional budget resolution includes approximate revenue, suggested outlays, new budget, deficit or the surplus generated from the revenue and also an approximate amount of the public debt. The Congressional resolution should pass latest by April 15th but usually the date extends.
Discussion on the Bills
The discussion on the budget takes place according to the importance of the bills. There are two types of spending- the direct and the discretionary. Basically there are two to three major steps of processing a bill. They are:
- The Budget session where the President reads out the budget at the House of Commons
- The Congress offers suggestions on the budget
- The Senate also hears the budget
- The Congress takes up the matter and appoints certain committees to make bills on the various issues to be addressed
- Finally after three months the budget is passed with the President's signature on it
The various subcommittees that develop the bill cover the areas of agriculture, defense, commerce, foreign operations, energy, security, health, labor, education, transportation, treasure and urban development.