Explanation:
Federal Budget can be defined as a major plan for federal governments to predict future revenue and spending for a period of time which is usually a year.
These are the steps involved in creating the federal budget
STEP 1
The Office of Management and Budget (OMB) prepares a budget proposal.
Office of Management and Budget is part of the management office of the President that makes the president budget based on the spending proposals received from federal agencies. Office of Management and Budget also reviews the effectiveness of agency services, policies and procedures to see if they fulfill with the priorities of the President and manage inter-agency policy initiatives.
STEP 2
The president submits a budget proposal to Congress.
After the office of the management has prepared the budget, the president will then submit the Budget to congress for review. The Budget Committees of the House and the Senate hold hearings on the matter of the annual budget which gives the Congress an opportunity to layout it’s spending, revenue, borrowing and economic goals -- as well as providing the vehicle for imposing internal budget discipline through established enforcement mechanisms before deciding on the overall level of spending and taxation.
STEP 3
Congress decides on the overall level of spending and taxation and passes specific spending bills.
After series of meeting among the congress, the congress will then decides on the overall level of spending and taxation and passes specific spending bills.
STEP 4
The president signs the spending bills into law.
The Congress will present the spending bills to the President for his signature or veto, as proscribed by the Constitution. The President has ten days in which to decide: to sign the bill or to veto the bill, thereby sending it back to Congress and requiring much of the process to begin again with respect the programs covered by that bill.
