The Budget Act of 1974

The Budget Act of 1974 established a formal process for the U.S. federal government to create and manage its annual budget. It created the Congressional Budget Office (CBO) to provide independent budget analysis and set guidelines for budget planning, review, and enforcement. The Act also introduced mechanisms like the Congressional budget resolution, which aligns spending and revenue goals, and established procedures to monitor federal fiscal policies. Its purpose is to promote fiscal discipline, transparency, and coordination between Congress and the executive branch in managing national finances.