Federal Budget Process
Every year the federal administration is involved with a total revenue and expenditure of about 1.5 trillion USD as a matter of fiscal practice. (Keith, 1996) The budgetary strategy of the federal administration is an integration of the guidelines that the policy makers, legislator, bureaucrats apply for designing, continuing, regulating and accounting fro the expenditure and revenue strategy. Normally the budgetary strategy involves formulation of the budget of the President by the administrative section; the budget strategy of the Congress has its base on the resolution moved by the Congress. In some of the years the authorization and appropriation strategies, implementation and impoundments of the budgetary law, the prescribed guideline under the Congressional Budget Act of 1974 in respect of deferring or rescinding of the funds appropriated, and the policy of financial managements are taken into account while formulation of the Congressional budget, particularly in case of the reconciliation legislation. (Holtz-Eakin, 2004)
In accordance with the Budget and Accounting Act of 1921, it is customary that the President presents the budgetary proposals on the first Monday of February every year. The Congressional Budget Act of 1974 requires the adoption of the annual budget resolution by April 15. It acts as an outline for the Congressional policy in isolated niches of expenditure and revenue collection. Additionally, the total expenditure and revenue and allocations to the Congressional committees in this respect authorized by the resolution are to be implemented by the allowing the Members of Congress to raise point of orders so as to enhance the individual expenditure or revenue with due consideration by the House or Senate. It has been laid down that the legislation deserves no further consideration if the point of order raised under the Congress Budget Act is accepted. (Holtz-Eakin, 2004)
The budget resolution may direct the Committees of the Congress to resort to reconciliation legislation with a view to make the levels set out in the resolution in consonance with the guidelines of expenditure and revenue legislations. The prevailing budgetary strategy extends enough scope for the policy formulators to institute and implement major modifications in the budgetary strategy. The strategy since long is being considered as the outline for major policy proposals and budgetary linkage over the period of time that is applied in the legislation process intended to implement the reconciliation instructions in budgetary resolutions. However, the continuance of the strategy has been obstructed due to want of general consensus on the policy. (Holtz-Eakin, 2004) We shall look into the functioning of the Federal Budget process and the barriers involved in its working.
Discussion
The budgetary strategy is required to present the budgetary alternatives unequivocally and also required to be an effective outline for arriving at and continuing with the budgetary strategies and also required to indicate the budgetary guidelines that is capable of reviewing the effective implementation of the policies. The prevailing budgetary procedures extends necessary assistance to the policymakers and to institute and implement the complete budgetary strategies and assessed to be functionally the best when general agreement on the attainment of the fiscal objectives are ascertained. (Holtz-Eakin, 2004)
As is with any complicated strategy, the federal budgeting can also be split up into its basic standards of activity and measurement. The expenditure process involves three different stages of budget authorization, obligation and outlays. The Budget authority is bestowed by the Congress and President within the legal framework. It generates the legal base for federal units to make the financial responsibilities enforceable in terms of the obligations. The activities of the federal agencies in form of executing contracts, appointment of personnel and executing orders for goods and services give rise to generation of such obligations. The outlays follow when the obligations are settled down. The outlays are normally in shape of the checks, electronic fund transfers and other payments effected to by the Treasury Branch. The budget authorities mostly are provided to the agencies every year being excerpted from the legislations made during the previous Congresses. The funds are provided without the legislation by the Congress. (Keith, 1996)
The other budgetary authorizations are provided to the agencies from the prevailing enactments particularly in shape steps on annual appropriations. Most of the agencies have automatically achieved the additional budget authority legislated in the previous year and that has been brought forwarded with the remaining unspent balances. The income of the federal administration indicated by revenues or receipts attributes to various means. The income taxes in respect of the individuals as well as the corporate sector constitute about fifty percent...
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