What legislative act serves as the basis for the federal budget process?

The Congressional Budget and Impoundment Control Act of 1974 is foundational to the federal budget process as it established a comprehensive framework for budget formulation, execution, and accountability. This act created the modern budget process by introducing important mechanisms for Congress to review and control federal spending, ensuring that budgetary decisions reflect legislative priorities rather than executive discretion alone.

One significant aspect of this act is the establishment of a formal budgetary cycle that includes the preparation, submission, and consideration of budget resolutions and appropriations bills, thereby promoting a structured approach to federal budgeting. It also set up the Congressional Budget Office (CBO) to provide independent analyses, aiding Congress in understanding the economic and budgetary implications of proposed policies.

By laying down these procedures and responsibilities, the act aimed to enhance legislative oversight over budgetary decisions and reduce the executive branch's ability to impound or withhold funds, thus improving transparency and accountability in the budgeting process.