Final answer:
The OMB considers factors such as projected surplus or deficit and economic factors when creating the President's budget proposal. They consult with various agencies and departments to determine how and where money should be budgeted. The budget is prepared annually and requires approval from Congress.
Step-by-step explanation:
The Office of Management and Budget (OMB) must consider a variety of factors before it creates the President's final budget proposal. These include projected surplus or deficit, economic factors, policy priorities, and Congress's agenda. The OMB consults with various agencies, departments, and the Council of Economic Advisors to determine how and where money should be budgeted for the fiscal year. The budget is prepared annually and must be submitted to Congress for approval.