Chapter 16.3, Problem 2R

To determine

To ascertain the steps involves in the federal budget- making process.

Explanation of Solution

The President's Budget Request

The Congressional Budget Resolution

Enacting Budget Legislation

Step −1

The procedure starts when the President is sending a detailed budget request for the coming fiscal year, starting on October 1.

Step-2

Next, Congress usually holds hearings to challenge officials on their demands and then creates its own budget proposal, called a "budget resolution," which is carried out by the Senate Budget Committees and the House, whose primary task is to write and implement the budget resolution.

Step-3

The key legislative mechanism prohibiting Congress from passing legislation that breaches the provisions of the budget resolution is the right of a single Member of the House or Senate bringing on the floor a motion for a 'point of order' to block such legislation.

Economics Concept Introduction

Introduction: The federal budget is Government's most critical economic tools. The budget represents their decisions on taxing and spending, borrowing and lending and consuming and saving. These decisions determine the scale and role of the federal government in the national economy.