United States federal budget

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Annual U.S. spending 1934-2006 with adjustment for inflation.

The Budget of the United States Government is a federal document that the President submits to the U.S. Congress. The President's budget submission outlines funding recommendations for the next fiscal year, which begins on October 1st. Congressional decisions are governed by rules and legislation regarding the federal budget process. House and Senate Budget committees each develop budget resolutions, which provide spending limits for the House and Senate Appropriations Committees' subcommittees, which then approve individual appropriations bills to allocate funding to various federal programs. After Congress approves an appropriations bill, it is sent to the President, who may sign it into law, or may veto it. A vetoed bill is sent back to Congress, which can pass it into law with a two-thirds majority in each chamber. Congress may also combine all or some appropriations bills into an omnibus reconciliation bill. In addition, the President may request and the Congress may pass supplemental appropriations bills or emergency supplemental appropriations bills.

1 Budget Basics
2 See also
3 References
4 External links

[edit] Budget Basics

The U.S. Constitution (Article I, section 9, clause 7) states that "[n]o 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."

Each year, the President of the United States submits his budget request to Congress for the following fiscal year, as required by the Budget and Accounting Act of 1921. Current law (31 U.S.C. 1105(a)) requires the President to submit a budget no earlier than the first Monday in January, and no later than the first Monday in February. Typically, Presidents submit budgets on the first Monday in February.

The federal budget is calculated largely on a cash basis. That is, revenues and outlays are recognized when transactions are made. Therefore, the full long-term costs of entitlement programs such as Medicare, Social Security, and Medicare, are not reflected in the federal budget. By contrast, many business and some foreign governments have adopted forms of accrual accounting, which recognizes obligations and revenues when they are incurred. The costs of some federal credit and loan programs, according to provisions of the Federal Credit Reform Act of 1990, are calculated on a net present value basis.

Basic Budget Terms (based on GAO Glossary)

Appropriations "Budget authority to incur obligations and to make payments from the Treasury for specified purposes."

Budget Authority "Authority provided by federal law to enter into financial obligations that will result in immediate or future outlays involving federal government funds."

Outlay "The issuance of checks, disbursement of cash, or electronic transfer of funds made to liquidate a federal obligation." The term "outlays" is usually synonymous with "expenditure" or "spending."

The amount of budget authority and outlays for a fiscal year usually differ because budget authority from a previous fiscal year in some cases can be used for outlays in the current fiscal year. Some military and some housing programs have multi-year appropriations, in which budget authority is specified for several coming fiscal years.

Total Outlays in Recent Budget Submissions

United States federal budget, 2009 - $3.10 trillion (submitted 2008 by President Bush)
United States federal budget, 2008 - $2.90 trillion (submitted 2007 by President Bush)
United States federal budget, 2007 - $2.77 trillion (submitted 2006 by President Bush)
United States federal budget, 2006 - $2.7 trillion (submitted 2005 by President Bush)
United States federal budget, 2005 - $2.4 trillion (submitted 2004 by President Bush)
United States federal budget, 2004 - $2.3 trillion (submitted 2003 by President Bush)
United States federal budget, 2003 - $2.2 trillion (submitted 2002 by President Bush)
United States federal budget, 2002 - $2.0 trillion (submitted 2001 by President Bush)
United States federal budget, 2001 - $1.9 trillion (submitted 2000 by President Clinton)
United States federal budget, 2000 - $1.8 trillion (submitted 1999 by President Clinton)
United States federal budget, 1999 - $1.7 trillion (submitted 1998 by President Clinton)
United States federal budget, 1998 - $1.7 trillion (submitted 1997 by President Clinton)
United States federal budget, 1997 - $1.6 trillion (submitted 1996 by President Clinton)
United States federal budget, 1996 - $1.6 trillion (submitted 1995 by President Clinton)

Budget resolutions and appropriations bills, which reflect spending priorities of Congress, will usually differ from funding levels in in the President's budget. The President, however, retains substantial influence over the budget process through his veto power and through his congressional allies.

The President's budget also contains revenue and spending projections for the current fiscal year, the coming fiscal years, as well as several future fiscal years. In recent years, the President's budget contained projections five years into the future. The Congressional Budget Office (CBO) issues a "Budget and Economic Outlook" each January and an analysis of the President's budget each March. CBO also issues an updated budget and economic outlook in August.

Actual budget data for prior years is available from the Congressional Budget Office ^[1] and from the Office of Management and Budget (OMB) ^[2].