Current Event Discussion 2: The Budgeting Process

The Budgeting Process
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The budgeting process at the congress is quite unique, as it controls the resources allocation across the states. It all begins with the president making the budgetary request to the congress, on the first Monday of February every year. The fiscal year of the federal system always starts on the first day of every October, unlike most of the state fiscal years that start in July the 1st and run for twelve months. After the president’s request, the administrative officials from the various federal agencies are given a chance to ait their requests too. The congress, through the house and senate budget committees, then resolute the budget with reference to the president’s and the various administrators’ requests.
When enforcing terms that have been set up in the budget, both the senate and the congress members can raise a point of order in case the budgetary allocations have been exceeded or the tax deductions have been under rated. The point of order at the senate is much more important as it requires more than 60 members to waive, while at the congress just a simple majority will overturn the objection. The congress, from time to time will have the chance to review the budgetary allocations, under the Congressional Budget Act. This process used by the congress to reduce the deficit in the budget, by either cutting downs on the spending or increasing the taxes, is referred to as reconciliation. To make sure that the taxes cuts and the various increases in the entitlements do not lead to an increase in the deficit that they are trying to cut down, the PAYGO rule ...