The Evolution of the Federal Budget Process - 989 Words

Federal spending is necessary for the economy and is essential to the accomplishment of national goals and advancement. This is why a budget is needed, however, there is no actual process mentioned in the Constitution that explains how Congress should do this. The Constitution states: No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of Receipts and Expenditures of all public Money shall be published from time to time. (U.S. Constitution, Article 1, Section 9). This statement only says that the power has been designated to Congress. It does not stipulate how to use this power nor does it give instructions for the budgeting process. Even as the role of†¦show more content†¦Prior to this, the legislative branch had no way to determine is own spending priorities and had nothing to compare to the President’s budget. The Congressional Budget Act of 1974 also created several other instruments for Congress to use during budgeting. First, the Congressional Budget Office was conceived to provide financial data to Congress. This financial data includes an economic analysis of the President’s budget and its own budget proposal for comparison. Previously, Congress had no choice but to use information from the Office of Management and Budget which was part of the executive branch. After the CBO was created, Congress was liberated from its reliance on the information from the executive branch. Second, it also created the House and Senate budget committees. These committees deliberate over the President’s budget using the CBO’s report as a guideline. They then draft and prepare the budget resolutions for each house. Once again, legislature was used to further define the government budgeting process. It did not, however, include instructions as to how to achieve actual budgeting goals such as a balanced budget or lowered debt. It has failed to set a reform to force hard decisions. Conclusion The separation of power doctrine as well as the checks and balances system have created a culture of restraint between the legislative and executive branches. Each branch’s initial instinct is always to contain theShow MoreRelatedWhat Is Federalism1012 Words   |  5 Pagescontains its power, which includes standard defence and the supremacy clause. Federalism has undergone changes and its part of the American history. The role of national and state governments has also evolved over time. Furthermore, the federal government has been given more mandates in the 21th century. Dual federalism emerged after the Americans got their independence from British rule at the end of World War 2. 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