1. Tutorial 4 The budgetary process
BUDGET AND TREASURY
Tutorial 4
The budgetary process

2. The budgetary process 1. General considerations
2. The budgetary process in Romania
3. The budgetary process in The United States

3. 1. General considerations
Definition:
The process of creating the budget is known as the budget process.
The budgetary process is the means by which the executive and legislative branches together formulate a coherent set of taxing and spending proposals. The mechanics of this process, and the relative roles of the two parts of government, differ considerably among countries.

4. 2. The budgetary process in Romania
Steps:
1. Budget Project elaboration (responsible for this-the Government)
2. Discussion and approval of the budget project (responsible for this-the Parliament)
3. Budget execution
4. Budget control

5. 2. The budgetary process in Romania

6. 2. The budgetary process in Romania
The revenues execution-steps:
Establishment- this means the identification of the tax payer, identification of the object of taxation, establishing the tax rate
Liquidation-in this step is computed the tax through applying the tax rate on the tax base
Issue of the title of encashment
The encashment
The expenses execution steps:
Engagement of the expense-assuming the obligation of payment
Liquidation- establishing the sum of payment
Ordinates the payment-this is done by the public institution in the favor of the providers of the contractor
The payment

8. Exercise
Make an analysis of one kind of tax following these steps.

9. 3. The budgetary process in The United States
PRESIDENT'S BUDGET
The annual budget process begins with the President’s budget, which outlines the President’s recommendations for spending programs and tax policy and is due to Congress the first Monday of February. To prepare the budget, federal agencies submit budget requests to the Office of Management and Budget (OMB). OMB reviews the requests and makes changes, subject to the President’s guidance, before combining those requests into the President’s budget.

10. The President’s budget lays out the administration’s policy proposals and budget priorities for each agency at account and sub-account level detail. It includes specific proposals for changing tax laws and reforming the budget process. The Administration’s estimates of the country’s economic outlook for the coming years influence its spending and revenue projections and are also incorporated into the budget.

11. THE CONGRESSIONAL BUDGET RESOLUTION
The congressional budget resolution is the Congress’ fiscal blueprint and is used to guide legislative activity in each congressional session. It establishes overall revenue and spending totals, allocates spending among major functions of government (e.g., national defense, transportation, health, agriculture), set limits on resources for discretionary spending programs and establishes target levels for mandatory spending.