Improving Congressional Control Over the Budget


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Improving the Federal Budgeting Process


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The Congressional Budget Act of 1974 laid out the current process, which, while adequately responding to concerns of the time, created a system of rules that have proved inadequate in altered circumstances. The intense polarization of the two political parties makes it hard to reach agreement, and increased transparency inhibits real deal-making. This report does not address specific budgets or budget targets. Instead, it lays out a menu of mid-level reform options that can help the budget process work better. While these reforms cannot overcome our deep partisan and ideological division, they can help us frame our choices more clearly and make those choices more cleanly. Despite our differences, there is broad agreement on the objectives of budget process reform: timeliness; transparency; democratic control; better alignment of priorities with overall commitments across the full range of fiscal tools; and improved public trust and confidence in the process.




Recommended Budget Practices


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Federal Budget Process Reform


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A Glossary of Terms Used in the Federal Budget Process


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A basic reference document for persons interested in the federal budget-making process. Emphasizes budget terms in addition to relevant economic and accounting terms to help the user appreciate the dynamics of the budget process. Also distinguishes between any differences in budgetary and non-budgetary meanings of terms. Over 300 terms defined. Index. Appendices: overview of the federal budget process, budget functional classification, and more.




Path Dependence and the Federal Budget Process


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The current federal budget process is widely believed to have contributed to the unsustainable fiscal future that many experts project for the United States. That assessment supported the Tea Party campaign to use the debt ceiling vote to force massive spending cuts, and has stimulated renewed attention on potential reforms of the process. Over the past several years, deficit hawks have proposed that special groups be empowered to develop deficit reduction plans and that special procedures automatically be invoked to force necessary savings. The Budget Control Act of 2011 included variants of these proposals. This paper argues that this approach is far from the best alternative for improving federal budgeting. It describes major flaws in the current process, and then advocates a radical reform: collapsing the appropriations and authorizations committees and processes, in order to support a budget process that would be more effective at allocating budgetary resources. It then seeks to describe why this radical reform has not been seriously considered, first by reviewing the path dependence literature, and then by interpreting federal budgeting since 1974 using the path dependence approach. The paper concludes that while politicians' aversion to radical budget reform may understandably reflect concerns about switching costs, just as important is the failure of politicians to think seriously about institutional alternatives. Political scientists should be more involved in budget reform, in order to improve the quality of discursive institutionalism.







Guidelines for Public Expenditure Management


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Traditionally, economics training in public finances has focused more on tax than public expenditure issues, and within expenditure, more on policy considerations than the more mundane matters of public expenditure management. For many years, the IMF's Public Expenditure Management Division has answered specific questions raised by fiscal economists on such missions. Based on this experience, these guidelines arose from the need to provide a general overview of the principles and practices observed in three key aspects of public expenditure management: budget preparation, budget execution, and cash planning. For each aspect of public expenditure management, the guidelines identify separately the differing practices in four groups of countries - the francophone systems, the Commonwealth systems, Latin America, and those in the transition economies. Edited by Barry H. Potter and Jack Diamond, this publication is intended for a general fiscal, or a general budget, advisor interested in the macroeconomic dimension of public expenditure management.