Z Points
Which step in the budget process does the House of Representatives control?
O
A. The House of Representatives proposes a budget to the president.
O
B. The House of Representatives itemizes a budget for every federal
agency
O
C. The House of Representatives turns the president's budget into
spending bills.
D. The House of Representatives approves the Senate's version of
the budget.
SUBMIT
PREVIOUS

Explanation:

Step One: The President's Budget Request

The process starts when the President submits a detailed budget request for the coming fiscal year, which begins on October 1. (The President’s request is supposed to come by the first Monday in February, but sometimes the submission is delayed, particularly when a new Administration takes office or congressional action on the prior year’s budget has been delayed.) This budget request — developed through an interactive process between federal agencies and the President’s Office of Management and Budget (OMB) that begins the previous spring (or earlier) — plays three important roles.

First, it tells Congress what the President recommends for overall federal fiscal policy: (a) how much money the federal government should spend on public purposes; (b) how much it should take in as tax revenues; and (c) how much of a deficit (or surplus) the federal government should run, which is simply the difference between (a) and (b). In most years, federal spending exceeds tax revenues and the resulting deficit is financed through borrowing (see chart).

Second, the President’s budget lays out his relative priorities for federal programs — how much he believes should be spent on defense, agriculture, education, health, and so on. The President's budget is very specific, recommending funding levels for individual “budget accounts” — federal programs or small groups of programs. The budget typically sketches out fiscal policy and budget priorities not only for the coming year but also for the subsequent nine years. The budget is accompanied by supporting volumes, including historical tables that set out past budget figures.

Spending, Revenues, and the Deficit

The third role of the President's budget is signaling to Congress the President’s recommendations for spending and tax policy changes. As discussed below, the budget comprises different types of programs, some that require new funding each year to continue and others that do not require annual action by Congress. While the President must recommend funding levels for annually funded programs, he need not propose legislative changes for ongoing parts of the budget already funded by prior

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