Posted by Michel Lazare
The US budget system presents many peculiarities and very few countries around the world share similar features. One striking example is the wide ranging power of the US Congress in shaping the budget. While the UK Parliament, for instance, rarely changes the budget prepared by the UK government, the "Congress considers the President's budget proposals and approves, modifies, or disapproves them, it can change funding levels, eliminate programs, or add programs not requested by the President. It can add or eliminate taxes and other sources of receipts, or make other changes that affect the amount of receipts collected." 1/
There are many excellent (text)books describing the US budget system. One example is the recent book by Allen Schick on The Federal Budget, Third Edition: Politics, Policy, Process.
But there is also an official source: the "Budget System and Concepts"
Download us_budget_system_and_concepts.pdf
"The Budget System and Concepts" is one of the supporting documents issues together with the President's budget and is available on the Office of Management and Budget (OMB) web page providing details on the President's budget for FY09.
While the Budget System and Concepts is written in a somewhat dry style, it is an invaluable source of information regarding the key features and concepts of the US budget system.
It includes the following sections:
- The budget process (formulation of the President's budget, Congressional action on the budget, and budget execution);
- Coverage of the budget
- Receipts, offsetting collections, and offsetting receipts;
- Budget authority and other budgetary resources, obligations, and outlays;
- Federal credit;
- Budget deficit or surplus and means of financing;
- Federal employment
- Basis fr budget figures;
- Principal budget laws; and
- Glossary of budget terms.
The first (budget process) and last (glossary) sections will be particularly useful to our readers who may not be familiar with the US budget system.
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1/ This quote is an excerpt from the sub-section of the "budget system and concept" on Congressional action.
