Peer Review Paper

Running head: The Federal Budget

The Federal Budget

Joanne V. Macon

Columbia Southern University

Professor Lisa Saye

January 25, 2013

The Budget System and Concepts

Introduction

The president's February budget appeal to Congress initiates a procedure that dates back to 1974, when Congress revamped the method the way government's expenditure is intended, in an effort to enrich its role as guardian of the federal budget. The president presents a suggested budget to Congress in February aimed at the fiscal year that will originate the following Oct.1 (Federal Budget Process, 2012).

By April 15, in cooperation chambers of Congress should aim to create their budget purposes, which is usually too broad to outline the amount government will amass and expend for the year. This is when the appropriations committees intervene in each chamber to entice them to work together. Twelve individual bills are drawn up to outline how money will be given to various agencies programs and how much each agency will receive (Federal Budget Process, 2012,).

Both chambers are responsible for passing their versions of the 12 bills and negotiate the dissimilarities among them and pass duplicate measures by September 30 end of fiscal year, in doing this, federal agencies can begin the year aware of what can be spent in the 12 months ahead. However, it never seems to work out that way. Policymakers have managed to buy time using short-term spending bills that allow government to remain open while they negotiate issues on spending priorities for the year. When policymakers are unable to come to a consensus on individual spending measures, they will group them into omnibus bill, allowing promptness in navigating legislation through congress (Federal Budget Process, 2012).

The Budget Process

The key segments of the federal budget consist of: Budget Formulation, Congressional Action and Budget Execution, each one is interconnected with the other. The Financial plan of the...