Budget Process
The Budget and Accounting Act requires the President to submit a budget. Federal budget process provides the means for the President and the Congress to decide how much money to spend, what to spend it on, and how to raise the money they have decided to spend. Through federal budget process, they determine the allocation of resources among the agencies of the Federal Government and between the Federal Government and the private sector. Federal budget process focuses primarily on dollars, but it also allocates other resources, such as Federal employment. Federal budgeting is a cyclical activity that begins with the formulation of the President’s annual budget and concludes with the audit and review of execution outcomes and performance.
Budgeting for the federal government is a complex process with very intensive activities and actions conducted by various levels of inputs and coordinations, and active participation of the President and its executive offices, congressional leaders and their staff members. The process related to a single fiscal year budget usually stretch over a period of two and-a-half calendar years (or longer). The three main stages are:I. Formulation of the President’s Budget; II. Congressional Enactment Process; III. Execution of Enacted Budget.
Federal agencies further break down those three stages into more detail processes to guide them through.
The key players and their core functions during budget process are:
Federal Agencies
Federal Agencies formulate and present budget requests to acquire needed resources, and execute their budget to accomplish statutory mission requirements. The process can start as early as 24 months prior to the execution year, and DoD uses PPBE to guide through the process since 1962.
OMB
OMB publishes and updates policy annually, sets up the control for federal agencies, consolidates and releases the President Budget, works with Congress during the enactment process, provides policy, and distributes apportionment for execution.
Congress
Congressional Enactment Process starts in Feb, and passes Budget Resolution, Authorization and Appropriation Bill before Fiscal Years starts on Oct 1. If appropriation bills are failed to pass, federal agencies shut down or operate under CR.
As the budget is being considered, federal agencies must deal with three different fiscal years at the same time:
Current Fiscal Year Budget Execution and Review
Upcoming Fiscal Year Budget Formulation and Enactment
Future Year(s) Budget Planning
