In recent years, the president has taken more and more control over the federal budget.
--Overview-- Show In the past decade, the Federal budget has been growing at an average rate of over 10% every year. President Ford has repeatedly asserted his intention to halt this trend. It is one of his primary goals to make the Federal government fiscally responsible:
To accomplish this, the President believes that (1) the Federal government must make a substantial and permanent cut in Federal taxes, and (2) make a substantial reduction in the growth of Federal spending. President Ford called upon the Congress to join him in restraining Federal spending by placing a $395 billion limit on FY 77 expenditures -- some $28 billion below projected spending for that year. Specific actions that he has taken include:
In his speech to the nation on October 6, 1975, President Ford said:
The President has pointed to the financial experience of our biggest and richest city -- New York -- as a profound lesson to all Americans about the dangers of living beyond our means:
President Ford means what he says when he talks about fiscal responsibility -- his speeches about cutting the budget and saving money are not just rhetoric. His views on holding down Federal spending are simple: for every dollar saved in cutting the growth in the Federal budget, there can be another dollar saved by the taxpayer in tax reductions. The budget he has submitted for FY 1977 cuts the rate of growth of Federal spending in half, for the first time in a decade of increasing federal budgets. President Ford's budget for FY 77 -$394.2 billion -- was even less than he had promised. By holding down the growth in Federal spending, the President has been able to ask for additional tax cuts -- nearly $10 billion more than the Congress agreed to in December. This means a total tax cut of $28 billion for the American taxpayer, because of President Ford's fiscal restraint. CUTTING THE GROWTH OF FEDERAL SPENDING
President Gerald R. Ford The Federal budget is an important step toward reversing the long-term trend in Federal spending. President Ford proposes to cut the rate of growth of Federal spending, year to year, to 5.5% -- less than half the average rate experienced over the last ten years. At the same time, President Ford has proposed further, permanent income tax reductions so that individuals and business can spend and invest these dollars instead of having the Federal Government collect and spend them. In proposing his budget, the President was determined to achieve fairness and balance:
President Ford's budget recommended $394.2 billion in Federal outlays for FY 1977, a reduction of nearly $29 billion in the projected growth of Federal Government spending. As a result of this spending restraint, the Federal deficit would be reduced from an estimated $76 billion in FY 1976 to $43 billion in FY 1977. By continuing to check the growth in Federal spending, the budget can be balanced in FY 79. Significant spending restraint coupled with tax cuts will foster sustained economic growth without inflation. The combination of tax and spending changes that he has proposed will set the nation on a course that not only leads to a balanced budget within three years, but also improves the prospects for the economy to stay on a growth path that can be sustained.
(Budget Message of the President, Jan. 21, 1976) Return to President Ford '76 Fact Book Send e-mail to the Gerald R. Ford Library Does the President have control over the nations budget?The Constitution vests Congress with the power of the purse, with provisions that refer to congressional authority to levy taxes, authorize the issuance of debt, and make appropriations to fund the federal government. 1 The Constitution does not provide an explicit role for the President in the budget process.
Who has control over the budget?Congress's first task in the annual process is to pass a budget resolution creating a framework and setting overall spending limits. As with most things Congress does, its two chambers—the Senate and the House of Representatives—each draft their own budget resolution.
What role does the President play in developing the federal budget?Submission of the President's Budget
Under current law, the President must develop and submit a consolidated budget to Congress no later than the first Monday in February prior to the start of the upcoming fiscal year. 23 In practice, the President sometimes fails to meet this submission deadline.
What is the President's budget?The president submits a budget to Congress by the first Monday in February every year. The budget contains estimates of federal government income and spending for the upcoming fiscal year and also recommends funding levels for the federal government.
|