EVOLUTION OF THE BUDGET PROCESS

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``Among the specific problems of public administration none exceeds in importance that of the establishment of an orderly and efficient system for the handling of the financial affairs of the government.''

-- William F. Willoughby, 1927.

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The Federal budget process actually is not a single process. Rather, the term broadly refers to all the rules and procedures that affect presidential proposal and congressional consideration of spending and tax legislation. Because the Constitution does not establish any specific guidelines for a budget process, every generation revisits the question in order to establish a budget process which best suits its needs. For this reason, the budget process has been the subject of considerable debate and discussion throughout history. The majority of the principal provisions that govern current consideration of the budget were adopted in the last 75 years, and are the result of two laws -- the Budget and Accounting Act of 1921 and the Congressional Budget and Impoundment and Control Act of 1974. In addition, the 1980s and 1990s have seen efforts to use the budget process as a tool for deficit reduction. This chapter provides background on the development of the current budget process -- the cumulative effect of many changes that have evolved over time.