Congressional Budget Resolution

Definition

The Congressional Budget Resolution is a non-binding budget plan passed annually by the U.S. Congress that sets overall spending limits, revenue targets, and public debt levels for the federal government. It serves as a blueprint for the appropriations process and other budgetary legislation.

5 Must Know Facts For Your Next Test

1. The Congressional Budget Resolution is required to be passed by April 15th each year, though this deadline is often missed.
2. It establishes enforceable spending limits for the appropriations committees, but does not actually appropriate funds itself.
3. The Budget Resolution sets levels for discretionary, mandatory, and total spending, as well as revenue and public debt.
4. Congress can use the reconciliation process to make changes to mandatory spending and revenue laws to align with the Budget Resolution.
5. While not legally binding, the Budget Resolution guides the appropriations process and other budget-related legislation throughout the fiscal year.

Review Questions

• Explain the role of the Congressional Budget Resolution in the federal budget process.
  • The Congressional Budget Resolution is a non-binding budget plan that sets overall spending limits, revenue targets, and public debt levels for the federal government. It serves as a blueprint for the appropriations process, guiding how discretionary funds are allocated to government programs and agencies. The Budget Resolution also establishes parameters for mandatory spending on entitlement programs and can trigger the reconciliation process to make changes to mandatory spending and revenue laws.
• Describe how the Congressional Budget Resolution interacts with the appropriations process and mandatory spending.
  • The Congressional Budget Resolution establishes enforceable spending limits for the appropriations committees, which then draft the individual appropriations bills to allocate discretionary funding. While the Budget Resolution does not directly appropriate funds, it sets the parameters for the appropriations process. Additionally, the Budget Resolution outlines levels for mandatory spending on entitlement programs, which is not determined through the annual appropriations bills. Congress can use the reconciliation process to make changes to mandatory spending and revenue laws to align with the targets set in the Budget Resolution.
• Evaluate the significance of the Congressional Budget Resolution in the overall federal budget policymaking process.
  • The Congressional Budget Resolution is a crucial component of the federal budget process, as it establishes the overarching fiscal framework that guides subsequent budgetary legislation. While the Budget Resolution is non-binding, it sets the stage for the appropriations process, mandatory spending levels, and potential changes to revenue and entitlement laws through the reconciliation process. The Budget Resolution reflects the budgetary priorities and political compromises of Congress, making it a central battleground for debates over taxing, spending, and the size and role of the federal government. Its importance lies in its ability to shape the budget landscape for the upcoming fiscal year and beyond.

Related terms

Appropriations Process: The process by which Congress allocates funding for discretionary government programs and agencies through a series of appropriations bills.

Mandatory Spending: Government spending on entitlement programs like Social Security, Medicare, and Medicaid that is determined by eligibility rules rather than the annual appropriations process.

Reconciliation Process: A legislative process that allows Congress to make changes to mandatory spending and revenue laws to match the levels set in the Congressional Budget Resolution.