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Business and Finance, Human Resource And Management

Characteristics Of Federal Budget

The federal budget is a legal document. It includes the planned expenses and the incomes of the whole country for a specific period of time. The budget develops the rules of expenditures by the executive authority, and the administration depends on them. However, the federal budget is not merely a document mentioning the income and expenses of the country. Rather, it demonstrates the actions to be taken by the government of the United States during the budget timeline.

In this regard, the federal budget serves as an estimate deed and is approved for a period of one fiscal year. Moreover, it may be amended over the course of that year. It is a document of authorization that the federal government utilizes to authorize the state governments to spend the funds as stated and collect the revenues and incomes as mentioned. Furthermore, the federal budget is a legal document that remains valid for the period of a fiscal year and is a representation of the policy that the government wants to implement.

Involved Parties

As per the Constitution of the United States, Congress holds the power over the federal budget. Article 1, Section 9 of the Constitution specifically mentions that money cannot be withdrawn from the treasury, but only in the case that the law approves it.

The foremost party that is involved is the President of the United States. He is responsible for submitting the budget proposal to Congress. Furthermore, all the federal agencies are required to submit the request for their budgets to the President. These budget requests are formulated by the budget and management office. After the budget requests are submitted to the President, he then submits these requests to Congress. Congress then develops a federal budget using the budget request provided by the President as a guideline, and hence, an appropriations bill is formed. Through it, the funds are allocated to the various agencies of the government. However, the appropriations bill has to be first approved by the House of Representatives in order to be implemented. After approval, the House submits it to the President, who signs it into the law.

The process takes almost eighteen months and is defined in the Budget Control Act of 1974. If the process is not followed, then a continuing resolution is submitted by Congress, and the government continues to run until the budget is approved. However, the government would shut down if it did not happen.

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