The Federal Budget Process

The Federal budgetary process is inextricably linked to improved Congressional oversight and administrative reform, and these subjects are currently being addressed by Congress. In the past decade, the nature and extent of Federal involvement in the economy and in State and local government operations have expanded so significantly that the borderline of the Federal Government is far more difficult to define for budgetary or other purposes than it used to be. In addition, there has been significant growth in the types of activities that are not fully reflected in the budget. The major items which are excluded from the budget include: off-budget entities; credit programs; offsetting receipts against outlays; tax expenditures; pension funds; and regulatory activities. A variety of factors contribute to the uncontrollability of expenditures, and to the ability of the Congress to control outlays through the budgetary process. These factors include: entitlements; indexing of the Federal expenditures; contract and borrowing authority; permanent appropriations; full funding; longer-term commitments for aid to State and local governments and for research and development; prior year balances of budget authority; measuring budget levels and longer-range projections; and control of outlays versus control of obligations. Other current reform activities which Congress may wish to consider are: strengthening Congressional oversight; streamlining zero-base budgeting and using a mission approach to budgeting; strengthening the executive monitoring of budget and program execution; achieving legislative savings; improving the intergovernmental relationships; and improving the special analyses of cross-cutting national concerns. The GAO responsibility in the budgetary process is for providing program information and impoundment reports to the Congress.