CGFM Federal Budget Process and Execution 1 — Questions and Answers
Question 1: What is the start of the federal government's fiscal year?
- January 1
- April 1
- July 1
- October 1 (Correct answer)
Correct answer: October 1
The federal government's fiscal year begins on October 1 and ends on September 30 of the following calendar year.
Question 2: Which law established the modern congressional budget process, including the Budget Committees and the Congressional Budget Office (CBO)?
- Budget and Accounting Act of 1921
- Congressional Budget and Impoundment Control Act of 1974 (Correct answer)
- Balanced Budget and Emergency Deficit Control Act of 1985
- Budget Enforcement Act of 1990
Correct answer: Congressional Budget and Impoundment Control Act of 1974
The Congressional Budget and Impoundment Control Act of 1974 created the current congressional budget process, Budget Committees in both chambers, and the CBO.
Question 3: What is a 'continuing resolution' in the federal budget process?
- A law permanently authorizing agency spending
- A temporary measure that funds the government when appropriations bills have not been enacted by the start of the fiscal year (Correct answer)
- A resolution to reduce the deficit
- A budget plan submitted by the President
Correct answer: A temporary measure that funds the government when appropriations bills have not been enacted by the start of the fiscal year
A continuing resolution temporarily funds government operations when Congress has not passed regular appropriations bills by October 1, typically at prior-year spending levels.
Question 4: Which document does the President submit to Congress each year to initiate the federal budget process?
- The Budget Resolution
- The Appropriations Bill
- The President's Budget Request (Correct answer)
- The Continuing Resolution
Correct answer: The President's Budget Request
The President submits a budget request to Congress on the first Monday in February, which proposes spending levels for all federal programs.
Question 5: What is the difference between 'budget authority' and 'outlays'?
- Budget authority is the amount spent; outlays are amounts appropriated
- Budget authority is the legal authority to obligate funds; outlays are the actual cash disbursements (Correct answer)
- Budget authority is for mandatory spending; outlays are for discretionary spending
- They are the same thing
Correct answer: Budget authority is the legal authority to obligate funds; outlays are the actual cash disbursements
Budget authority is the legal authority granted by Congress to obligate funds, while outlays are the actual payments made when obligations are liquidated.
Question 6: What is 'mandatory spending' in the federal budget?
- Spending approved annually through appropriations bills
- Spending required by existing law for programs like Social Security and Medicare (Correct answer)
- Spending for defense and national security
- Spending for congressional salaries
Correct answer: Spending required by existing law for programs like Social Security and Medicare
Mandatory (or direct) spending is controlled by existing law rather than annual appropriations and includes entitlement programs like Social Security, Medicare, and Medicaid.
CGFM Federal Budget Process and Execution 1
What is the start of the federal government's fiscal year?