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CHAPTER ELEVEN: Budgeting

Study

Chapter Summary

Chapter 11 focuses on the budget, the budget process, and budget execution. The budget shapes public policy decisions as well as the national economy. Preparation of the budget at any level of government includes a set of spending and revenue plans combined in a single document. One approach encourages broad targets for overall spending and revenues. Another approach emphasizes focusing on small steps or the distribution battles inside the budget.

At the federal level the budget process often permits political game-playing between the president and Congress. As of the 1921 Budget and Accounting Act, the president has been expected to submit an annual budget to Congress. Congress authorizes expenses and determines how to earn money. The legislature essentially commits the money to be spent, and the executive oversees implementation of the budget.