U.S. ECONOMY > State & Federal Finance > The Budgeting Process > The Annual Budget Process

Budget Resolution

Each year the House and the Senate must agree on a budget resolution which provides the blueprint for budget activities in the coming fiscal year and at least 5 outyears. The budget resolution includes spending levels for discretionary spending, projections about the federal deficit and instructions for bringing about changes in entitlement programs and tax policy. The budget resolution does not require Presidential signature, but is supposed to be agreed to by the House and Senate before the annual Appropriations process gets underway.