The federal budget has been in the news more than usual lately.
Congress early in 2013 postponed a 2 percent across-the-board
cut in Medicare payments, 8 percent cuts for certain domestic
spending, and 10 percent cuts in non-military personnel defense
spending, using a measure called sequestration. But the deadline
to avoid sequestration returns again in March, and the federal
government is scheduled to hit its debt limit, or debt ceiling,
in May. Despite its recent notoriety, the federal budget remains
an obscure, esoteric issue with many technicalities and terms.
This post is a quick primer on federal budget processes, terms,
and components. Federal Budget and Appropriations Process: The
first thing to know is that the federal budget does not spend
any money or raise any taxes. It is primarily a guide,
establishing spending ceilings and revenue floors for Congress
to follow in passing separate appropriations and revenue
legislation. The budget is a resolution, not a law, so the
President does not sign it. H