What is the history of the federal budget process? Q.What is the history of the budget process? A.In 1972, President Richard Nixon impounded funds for various social programs. Nixon argued that because Congress lacked a process for controlling the federal budget, budget deficits might expand irresponsibly if the president lacked the power to block funding. Congress responded by establishing a formal budget process through the Congressional Budget and Impoundment Control Act of 1974. Read more about What is the history of the federal budget process?
How is a budget resolution enforced? Q.How is a budget resolution enforced? A.Spending and revenue targets set in the annual budget resolution are enforced by points of order, which any member of Congress may raise against legislation inconsistent with those targets. Read more about How is a budget resolution enforced?
How accurate are long-run budget projections? Q.How accurate are long-run budget projections? A.Budget projections are inevitably uncertain. COVID-19 has pushed deficits far above expectations, for example. On the other hand, interest rates have fallen substantially in recent decades, limiting the debt service costs of rising debt. Despite these and other changes, long-run budget projections consistently show that, under existing policies, the public debt will likely continue to grow faster than the economy. Read more about How accurate are long-run budget projections?
