National Budget Process

National Budget

A financial plan that outlines expected revenues and expenditures for a specific period, typically a fiscal year.

Fiscal Year

A one-year period that governments use for accounting and budget purposes, which may not align with the calendar year.

Budget Proposal

A document submitted by the executive branch outlining the government's planned spending and revenue for the upcoming fiscal year.

Appropriation Bill

Legislation that allows government agencies to spend money from the budget, specifying the amount and purpose of the funds.

Revenue Sources

The various means through which a government collects money, including taxes, fees, and grants.

Deficit

A financial situation where expenditures exceed revenues, resulting in a shortfall.

Surplus

A financial situation where revenues exceed expenditures, resulting in excess funds.

Budget Committee

A group within a legislative body responsible for reviewing and making recommendations on budget proposals.

Budget Execution

The phase in which the approved budget is implemented, involving the actual spending of funds and monitoring of expenditures.

Discretionary Spending

Government spending that is not mandated by law and can be adjusted through the budget process, unlike mandatory spending.

Mandatory Spending

Expenditures required by law that are not subject to annual appropriations. Largest portion of the budget.

Economic Forecasting

The process of predicting future economic conditions to inform budget planning and decision-making.

Appropriations Committee

A committee of the United States House of Representatives that set specific expenditures of money by the government.

October 1

Fiscal year begins

1st Monday in February

President submits budget to Congress

President

The budget process begins and ends with him/her

Interest on the Debt

Part of mandatory spending that makes up a significant portion of the budget

National Debt

The sum of government deficits (and surpluses) over time.

Individual Income Tax

Largest source of revenue for the government

Office of Management and Budget

Oversees the implementation of the President's vision across the Executive Branch, including budget development and execution.

Congressional Budget Office

Non-partisan federal agency within the legislative branch that provides budgetary economic information to Congress.

Appropriations Bill

An act of Congress that actually funds programs within limits established by authorization bills. Appropriations usually cover one year.