Question

Explain the four main ideas behind the Congressional Budget Act of 1974.

A) Fiscal responsibility, transparency, budget reconciliation, and oversight.
B) Bipartisanship, executive control, deficit reduction, and federal regulations.
C) Tax reform, foreign policy, entitlement programs, and military spending.
D) Economic stimulus, government shutdown prevention, debt ceiling control, and appropriations.

Answer 1

The Congressional Budget Act of 1974 focuses on fiscal responsibility, transparency, budget reconciliation, and oversight, which includes establishing a consistent budget process and creating the CBO for fiscal analysis.

Step-by-step explanation:

The Congressional Budget Act of 1974 is primarily focused on enhancing the following four areas: fiscal responsibility, transparency, budget reconciliation, and oversight. The intent of the Act was to establish a consistent budget process, increase congressional control over the budget, direct the president to submit a budget each year, and create the Congressional Budget Office (CBO) for independent analyses of budgetary and economic issues. The budget reconciliation process allows for expedited consideration of certain tax, spending, and debt limit legislation. Fiscal responsibility is emphasized through various controls on deficit spending, including mechanisms like PAYGO, which requires offsetting any increase in the deficit with equal savings elsewhere. Transparency is achieved by thorough analysis and scoring of proposed legislation by the CBO, ensuring that its impact on the federal budget is openly understood.