Final answer:
The budget resolution sets expenditure limits based on revenue projections, reconciles divergences between the House and Senate, and includes adjustments to meet fiscal goals. The CBO assists Congress in this process, which involves both mandatory and discretionary spending. Disagreements between branches may lead to the need for a Continuing Resolution.
Step-by-step explanation:
The Federal Budget Process
A budget resolution serves as a blueprint for government spending and lays out the Congress's vision of spending, revenue, deficits, and debt. It sets expenditure limits based on revenue projections and includes instructions for changing programs to meet fiscal goals. Initially, Congressional Budget Office (CBO) aids the House and Senate Budget Committees in crafting the resolution. Once the initial budget resolution passes in May, adjustments are made over the summer by Appropriations Committees, leading to a second resolution in September that reconciles initial projections with actual appropriations. Throughout this process, the president's involvement includes presenting a proposed budget, which represents policy goals rather than a fixed plan. If Congress and the President cannot reach an agreement, a Continuing Resolution may be necessary to prevent a government shutdown.
The federal budget comprises mandatory spending (such as entitlements) and discretionary spending, which requires annual congressional approval. Discretionary spending includes areas like defense and education. The budget process is complex, involves several stages, and is prone to challenges like partisanship and conflict between the legislative and executive branches.