THE PRESIDENT'S BUDGET

Although the Constitution does not require the President to submit an annual budget, in 1921 the Budget and Accounting Act laid the foundation for the modern budget process, including the President's budget. More recently, the Budget Act of 1974 established a timetable for the annual budget process which is kicked off each year by the President's budget submission. The Budget Act specifies that the President's budget should be presented to Congress on or before the first Monday in February, which usually coincides with the President's State of the Union Address.

The President's budget is generally viewed as a detailed outline of the Administration's policy and funding priorities as well as a presentation of the economic outlook for the coming fiscal year. The President's budget, which estimates spending, revenue and borrowing levels, is compiled from input by the various federal agencies, with funding broken down into twenty budget function categories.