Federal Budget Making

January 8, 1969

Report Outline
Budget Approach of Incoming President
Operation of Federal Budget System
Budget Choices After the Viet Nam War
Special Focus

Budget Approach of Incoming President

Budget Dilemmas at a Change of Presidents

Federal budget making is the process of sorting out national priorities. The complex and painstaking exercise forces the White House to make hard choices involving competing constituencies and political pressures. By having to put a price tag on its goals, the administration must choose between what it considers attainable and what is merely desirable.

These choices are now being made by Richard M. Nixon and his advisers but, like all incoming Presidents in recent times, Nixon must live for a while with the budget he inherits from the departing incumbent. President Johnson will present to Congress on or about Jan. 13, one week before he leaves office, the federal budget for the fiscal year 1970, beginning next July 1. Nixon is certain to revise it, but probably not entirely as he would like.

President Eisenhower in 1953 found little room to maneuver in the budget President Truman had left him for fiscal 1954. Eisenhower cut it by $4.5 billion but still felt impelled to ask Congress to postpone tax reductions which he wanted. President Kennedy in 1961 added $8 billion to the last Eisenhower budget but was unable to win from Congress that year a series of tax revisions to stimulate the economy.

ISSUE TRACKER for Related Reports
Federal Budget and National Debt
Sep. 01, 2017  National Debt
Jul. 12, 2013  Government Spending
May 15, 2012  State Capitalism
Mar. 18, 2011  National Debt
Nov. 14, 2008  The National Debt
Dec. 09, 2005  Budget Deficit
Apr. 13, 2001  Budget Surplus
Feb. 01, 1991  Recession's Regional Impact
Jan. 20, 1984  Federal Budget Deficit
Sep. 09, 1977  Federal Reorganization and Budget Reform
Nov. 24, 1972  Limits on Federal Spending
Jan. 08, 1969  Federal Budget Making
Dec. 06, 1967  National Debt Management
Aug. 01, 1962  Fiscal and Budget Policy
Nov. 27, 1957  National Debt Limit
Mar. 20, 1957  Spending Controls
Dec. 24, 1953  Public Debt Limit
Feb. 13, 1952  Tax and Debt Limitation
Nov. 30, 1949  Government Spending
Jan. 06, 1948  Legislative Budget-Making
May 23, 1944  The National Debt
Feb. 01, 1943  The Executive Budget and Appropriations by Congress
Dec. 27, 1939  Revision of the Federal Budget System
Oct. 10, 1938  The Outstanding Government Debt
Nov. 20, 1937  Budget Balancing vs. Pump Priming
May 02, 1936  The Deficit and the Public Debt
Oct. 19, 1934  The Federal Budget and the Public Debt
Feb. 10, 1933  Extraordinary Budgeting of Federal Finances
Dec. 01, 1932  Reduction of Federal Expenditures
Dec. 01, 1930  The National Budget System
Oct. 02, 1930  Federal Revenues and Expenditures
Nov. 02, 1927  The Public Debt and Foreign Loans
Nov. 15, 1926  Rising Cost of Government in the United States
Feb. 05, 1925  Four Years Under the Budget System
Budget Process
Powers and History of the Presidency